Businesses upgrade legacy tech while expanding AI use

New research from Ensono suggests that many businesses are extending and upgrading legacy technology instead of replacing it, even as they expand their use of AI. Budgets are being directed toward AI while organizations upgrade existing PCs, laptops, and some lower-end servers with faster storage and more RAM.

Ensono’s second annual State of IT Modernization Report says this balancing act is managed by about 52% of businesses: 57% in the UK and 48% in the US. At the same time, 61% of businesses across the US and UK have been forced to pause, reduce, delay, or abandon IT modernization during the past 2 years.

The report says 71% of IT modernization projects exceeded their budgets. Workflow challenges accounted for 33% of reported barriers to achieving a return on AI spending, while limitations in existing infrastructure accounted for 28%.

AI was identified as accelerating modernization by 54% of decision-makers, up from 39% last year. Brian Klingbeil, Ensono’s Chief Strategy Officer, said legacy systems such as mainframes can be augmented by AI. He said organizations must decide what to replace and what to augment, using modernization methods that were not available even 18 months ago. The findings suggest budget pressure, rather than only strategic preference, is helping drive the continued use of older technology.