Corporate IT at a Crossroads: Kyndryl Study Reveals Widespread Infrastructure Strain

A global survey of 3,700 executives reveals 25% of critical IT assets are obsolete, hindering operations and future-proofing. Data sovereignty is now a top strategic priority.

A new global study from Kyndryl Holdings Inc. paints a concerning picture of enterprise technology foundations struggling to keep pace with digital demands. The company's "2025-2026 Security and Networks Snapshot," released yesterday, surveyed 3,700 senior executives and uncovered significant gaps between aging systems and modern business requirements.

Legacy Systems Pose Operational and Strategic Risks

The research identifies a critical bottleneck: one-quarter of all essential IT assets—including networks, storage, and servers—have reached the end of their useful life. This obsolete hardware is increasingly viewed as a direct operational liability. Furthermore, 20% of managers reported that their current network architecture actively hinders their ability to scale operations.

Confidence in existing technology is notably low. A mere 37% of respondents consider their network infrastructure to be "future-proof." This sentiment underscores a pressing need for substantial investment, as modernization of backend systems becomes crucial for maintaining competitiveness.

Shifting Priorities: Data Sovereignty and Emerging Tech

Beyond hardware refreshes, corporate priorities are evolving. The concept of data sovereignty has moved to the forefront, with 84% of leaders citing it as a central concern for their strategic planning.

The study also highlights a cautious approach toward next-generation technology. While quantum computing captures headlines, a significant portion of executives express skepticism regarding its immediate enterprise applicability and are prioritizing more foundational IT upgrades.