Research Hub > IT Infrastructure Modernization Increases Agility and Efficiency
White Paper
12 min

IT Infrastructure Modernization Increases Agility and Efficiency

Infrastructure modernization improves performance and increases agility by streamlining processes, automating tasks and integrating systems. By upgrading their IT infrastructure, organizations can stay competitive.

IN THIS ARTICLE

Infrastructure modernization is the process of rationalizing existing IT architecture, encompassing hardware, software and operational frameworks. Organizations undertaking Infrastructure modernization efforts can reap many benefits, such as improved agility, operational efficiency, reliability and resilience. Existing legacy IT environments that are aging, fragmented or poorly integrated may struggle to handle current workloads and hamper future technology investments. Adoption of artificial intelligence (AI) and other emerging workloads has quickly become a focus for driving business evolution and success. Organizations that invest in modernized architectures better position themselves to develop and deploy these rising technologies, helping to maintain a competitive edge. Organizations that take a critical look at their IT environments and make appropriate upgrades can become more agile, more operationally efficient, and better able to serve their customers today and in the future.

Learn how your organization can achieve a variety of valuable business outcomes with a modernized infrastructure.

Infrastructure modernization is the process of rationalizing existing IT architecture, encompassing hardware, software and operational frameworks. Organizations undertaking Infrastructure modernization efforts can reap many benefits, such as improved agility, operational efficiency, reliability and resilience. Existing legacy IT environments that are aging, fragmented or poorly integrated may struggle to handle current workloads and hamper future technology investments. Adoption of artificial intelligence (AI) and other emerging workloads has quickly become a focus for driving business evolution and success. Organizations that invest in modernized architectures better position themselves to develop and deploy these rising technologies, helping to maintain a competitive edge. Organizations that take a critical look at their IT environments and make appropriate upgrades can become more agile, more operationally efficient, and better able to serve their customers today and in the future.

Learn how your organization can achieve
a variety of valuable business outcomes
with a modernized infrastructure.

mkt73329-infrastructure-modernization-enterprise-secondary

Driving Business Outcomes Through IT Infrastructure Modernization

Modernizing infrastructure supports essential IT and business outcomes today and enables the rapid adoption of outcomes that will be important in the future. Typically, organizations pursue modernization to achieve four broad objectives: simplicity, scalability, performance and security. To choose the right IT solutions and develop an effective modernization strategy, it is essential to identify key objectives, problems and gaps for an organization. Deploying foundational components and infrastructure that align with business strategies is key to accomplishing goals and making the most of technology investments.

Cost is often cited as a barrier to IT modernization, though this ignores the hidden costs of inefficient legacy architectures and technologies. For example, organizations that adopt longer hardware lifecycles to save money often find that around year five, systems maintenance intensifies, which raises cost and risk. Modernization also empowers organizations to leverage new capabilities that can reduce operational costs. For example, one study found that if an apparel retailer used a predictive network to determine which items to display online, it could reduce the number of returns and improve profits by more than 8 percent.

Organizations can also reduce costs by ensuring that consumption models reflect the optimal combination of cloud and on-premises resources. While public clouds remain the best option for certain workloads, higher-than-expected costs have led some organizations to repatriate to on-premises data centers. A modernization initiative can ensure that an organization uses the most effective solution for each type of workload.

41%

The percentage of organizations that say they have adequate staffing and budget to take advantage of generative artificial intelligence and large language models

Source: AI Infrastructure Alliance, “Enterprise Generative AI Adoption,” August 2023



Infrastructure modernization also increases efficiency and productivity. For example, microservices and containers permit more nimble, automated workloads. Consolidated platforms and integrated systems simplify environments and enable lean IT teams to leverage centralized monitoring, automated troubleshooting and other timesaving tools. Whether the goal is to reduce cost, address IT staffing shortages, increase agility and scalability, or become more energy-efficient, modernized infrastructure is the right place to start. Holistic planning and strategic investments can ensure that technology and business objectives work hand in hand to optimize current resources and drive future outcomes.

Learn how your organization can achieve
a variety of valuable business outcomes
with a modernized infrastructure.

Driving Business Outcomes Through IT Infrastructure Modernization

Modernizing infrastructure supports essential IT and business outcomes today and enables the rapid adoption of outcomes that will be important in the future. Typically, organizations pursue modernization to achieve four broad objectives: simplicity, scalability, performance and security. To choose the right IT solutions and develop an effective modernization strategy, it is essential to identify key objectives, problems and gaps for an organization. Deploying foundational components and infrastructure that align with business strategies is key to accomplishing goals and making the most of technology investments.

Cost is often cited as a barrier to IT modernization, though this ignores the hidden costs of inefficient legacy architectures and technologies. For example, organizations that adopt longer hardware lifecycles to save money often find that around year five, systems maintenance intensifies, which raises cost and risk. Modernization also empowers organizations to leverage new capabilities that can reduce operational costs. For example, one study found that if an apparel retailer used a predictive network to determine which items to display online, it could reduce the number of returns and improve profits by more than 8 percent.

41%

The percentage of organizations that say they have adequate staffing and budget to take advantage of generative artificial intelligence and large language models

Source: AI Infrastructure Alliance, “Enterprise Generative AI Adoption,” August 2023



Organizations can also reduce costs by ensuring that consumption models reflect the optimal combination of cloud and on-premises resources. While public clouds remain the best option for certain workloads, higher-than-expected costs have led some organizations to repatriate to on-premises data centers. A modernization initiative can ensure that an organization uses the most effective solution for each type of workload.

Infrastructure modernization also increases efficiency and productivity. For example, microservices and containers permit more nimble, automated workloads. Consolidated platforms and integrated systems simplify environments and enable lean IT teams to leverage centralized monitoring, automated troubleshooting and other timesaving tools. Whether the goal is to reduce cost, address IT staffing shortages, increase agility and scalability, or become more energy-efficient, modernized infrastructure is the right place to start. Holistic planning and strategic investments can ensure that technology and business objectives work hand in hand to optimize current resources and drive future outcomes.

Learn how your organization can achieve
a variety of valuable business outcomes
with a modernized infrastructure.

AI Adoption Remains Uneven

55%

The percentage of organizations that have adopted artificial intelligence for business functions

Source: McKinsey, “The State of AI in 2023: Generative AI’s Breakout Year,” August 2023

24%

The percentage of organizations that cite strategy as their biggest challenge in capturing value from artificial intelligence, versus 11 percent of “AI high-performing” organizations

Source: McKinsey, “The State of AI in 2023: Generative AI’s Breakout Year,” August 2023

33%

The percentage of organizations that cite automation of IT processes as a use case driving artificial intelligence adoption

Source: IBM, “IBM Global AI Adoption Index 2023,” January 2024

AI Adoption Remains Uneven

55%

The percentage of organizations that have adopted artificial intelligence for business functions

Source: McKinsey, “The State of AI in 2023: Generative AI’s Breakout Year,” August 2023

24%

The percentage of organizations that cite strategy as their biggest challenge in capturing value from artificial intelligence, versus 11 percent of “AI high-performing” organizations

Source: McKinsey, “The State of AI in 2023: Generative AI’s Breakout Year,” August 2023

33%

The percentage of organizations that cite automation of IT processes as a use case driving artificial intelligence adoption

Source: IBM, “IBM Global AI Adoption Index 2023,” January 2024

cdw

Why Emerging Technologies and Workloads Will Require Organizations to Modernize Their Infrastructure

Organizations that have not yet done so should assess their readiness to integrate and leverage emerging technologies. Do you have adequate infrastructure to support AI? Has automation been deployed effectively? Are IT operations aligned with business needs? These and similar questions should guide the development of a modernization strategy.

AI AND THE COMPETITION: AI high performers are pulling away from the pack. Organizations attributing at least 20 percent of their profitability to AI use it to create new products, optimize development and expand revenue streams. While others struggle with strategy, high performers are refining their AI models and learning how to scale.

FORECASTING FOR AI DATA: AI is changing how organizations manage data. To generate AI-driven analyses and insights, organizations need a solid handle on their existing data and a forward-looking plan for the large amounts of new data that AI systems will produce. This sprawl will demand scalable storage, seamless security and strong governance.

Click Below to Continue Reading

arrow

MANAGING MODERN WORKLOADS: In addition to AI, data intensive tools such as robotic process automation, the Internet of Things and augmented reality can quickly become burdensome without modernized approaches to storage and processing. Some of the strategies traditionally used in the public cloud, such as containerization and Kubernetes, can also be deployed on-premises.

DESIGNING FOR THE FUTURE: Organizations that use siloed emerging technology — for instance, deploying AI in one area without a systemwide upgrade — often fail to achieve far-reaching benefits because overall capabilities become uneven and difficult to integrate. The best results arise from a holistic strategy that connects IT investments to desired business outcomes.

AUGMENTING IT DEPARTMENTS: A shortage of qualified IT professionals continues to impede progress at many organizations. Simplifying the IT environment, enabling automation and deploying AI to manage mundane tasks can meaningfully stretch IT resources. For example, maintaining a secure environment becomes easier and faster with the help of AI-enabled anomaly detection and analysis.

cdw

Emerging Technologies and Workloads

Organizations that have not yet done so should assess their readiness to integrate and leverage emerging technologies. Do you have adequate infrastructure to support AI? Has automation been deployed effectively? Are IT operations aligned with business needs? These and similar questions should guide the development of a modernization strategy.

AI AND THE COMPETITION: AI high performers are pulling away from the pack. Organizations attributing at least 20 percent of their profitability to AI use it to create new products, optimize development and expand revenue streams. While others struggle with strategy, high performers are refining their AI models and learning how to scale.

FORECASTING FOR AI DATA: AI is changing how organizations manage data. To generate AI-driven analyses and insights, organizations need a solid handle on their existing data and a forward-looking plan for the large amounts of new data that AI systems will produce. This sprawl will demand scalable storage, seamless security and strong governance.

Click Below to Continue Reading

arrow

MANAGING MODERN WORKLOADS: In addition to AI, data intensive tools such as robotic process automation, the Internet of Things and augmented reality can quickly become burdensome without modernized approaches to storage and processing. Some of the strategies traditionally used in the public cloud, such as containerization and Kubernetes, can also be deployed on-premises.

DESIGNING FOR THE FUTURE: Organizations that use siloed emerging technology — for instance, deploying AI in one area without a systemwide upgrade — often fail to achieve far-reaching benefits because overall capabilities become uneven and difficult to integrate. The best results arise from a holistic strategy that connects IT investments to desired business outcomes.

AUGMENTING IT DEPARTMENTS: A shortage of qualified IT professionals continues to impede progress at many organizations. Simplifying the IT environment, enabling automation and deploying AI to manage mundane tasks can meaningfully stretch IT resources. For example, maintaining a secure environment becomes easier and faster with the help of AI-enabled anomaly detection and analysis.

Learn how your organization can achieve
a variety of valuable business outcomes
with a modernized infrastructure. 

Andrew Young

Principal Consultant
Principal Consultant