Aiming for GenAI Success? Pay Your Technical Debts First, Shows New SnapLogic Research
2024年7月18日 - 4:00PM
ビジネスワイヤ(英語)
- Legacy systems are accruing serious technical
debt for businesses, with nearly 2 in 3 spending close to $3
million on maintenance and updates
- Majority of companies need to modernize 50% of
their entire technology stack in order to deploy GenAI
Applications
SnapLogic, the leader in generative integration, today published
new research revealing legacy technology is costing businesses
nearly $3 million ($2,955,000) on average and causing substantial
technical debt across organizations. The research reveals that
spending on updating legacy systems has dramatically increased over
the last five years, with almost two-thirds (65%) of businesses now
investing more than $2 million on maintaining or upgrading their
legacy systems, twice as many as five years prior.
Given that nearly two-thirds of IT decision-makers (64%) expect
integration with GenAI technology will free up more than 25% of
their existing workloads [Q5], it’s no surprise that GenAI is a key
driving factor for businesses to modernize their tools. In fact,
over half (57%) of global businesses are looking to update up to
50% of their legacy systems in order to utilize GenAI technology
[Q5].
SnapLogic’s Censuswide survey of 750 IT decision-makers in
organizations with over 250 employees across the United States,
United Kingdom and Germany shows that onboarding GenAI technology
is a key focus for businesses in all markets, with over half of
organizations (51%) having already allocated over $2 million to
implementing it this financial year [Q3a]. This is sizable,
considering 82% of IT decision-makers currently have less than $5
million earmarked for their entire annual IT budget.
When it comes to integrating with GenAI systems 32% of
respondents report that up to 25% of their legacy systems are
unable to connect to or be utilized by AI tools [Q5]. But there’s a
strong desire to change this. General IT, customer support and
customer databases emerged as the top three areas in which
businesses desire integration with GenAI technology [Q7]. The
sales, media and marketing sector plan to invest the most in
integrating GenAI solutions, with almost half (44%) looking to
spend between $2-3 million this financial year [Q3a].
Legacy Leaves a Lot to be Desired
Technical debt – outdated code that can impact productivity,
product quality or customer satisfaction – is a major concern for
businesses this year, with 63% revealing that they are experiencing
a 'moderate' to 'severe' negative impact of technical debt on their
company's data stack. This negative impact is felt most in the
finance sector, where 72% of businesses are dealing with technical
debt challenges, jointly followed by the IT and telecoms and
manufacturing and utilities sectors at 66% [Q1].
Furthermore, outdated and legacy technology has topped the list
(38%) as the main contributor to the accumulation of technical debt
in IT systems, closely followed by inefficient processes (36%) and
evolving requirements (35%) [Q2].
This issue of legacy technology is even more concerning
considering 96% of all global organizations’ current systems,
applications and networks are considered, or rely on, legacy
technology to at least some extent. However, updating and patching
legacy systems, while necessary, takes up a significant proportion
of IT professionals' time. Over 75% of those surveyed spend between
five to 25 hours a week on such endeavors [Q6].
Better Tech Integration the Key to Productivity? 97% of
Businesses Believe So.
Legacy technology isn’t the only issue sapping productivity.
Respondents shared that they use a staggering number of software
applications for work, with 69% claiming to use more than 10
different tools [Q8]. As a result, a significant 86% estimate
losing more than five hours a week switching between different
applications for work-related tasks [Q9].
Unsurprisingly, almost all businesses surveyed (97%) believe
greater integration between their work applications would increase
productivity [Q5a] and the overwhelming majority (88%) of
businesses that are taking steps to integrate their existing tech
and data stack with AI tools are seeing positive results.
“Legacy technology is one of the main inhibitors to adoption of
GenAI technology due to data isolation and incompatibility with
modern API-centric AI systems,” said Jeremiah Stone, CTO,
SnapLogic. “Overcoming this gap is critical to success and is
consistent with what I have been hearing, first-hand, from CIOs and
IT leaders across a variety of different industries. From these
conversations, it’s clear that leaders are adopting innovative
measures such as deployment of Generative Integration to navigate
such challenges and deliver on GenAI initiatives to gain
competitive advantage. Ultimately the race to resolve legacy tech,
in order to onboard GenAI, is well underway. It’s now just a
question of who will reap the rewards soonest.”
To read the full report, visit
https://www.snaplogic.com/resources/research/the-code-to-unlock-genai.
About the survey
SnapLogic partnered with independent third-party research firm
Censuswide to survey 750 mid-senior management workers within large
enterprises across the UK, US and Germany to understand their views
on AI in the workplace.
About SnapLogic
SnapLogic is the leader in Generative Integration. As a pioneer
in AI-led integration, the SnapLogic Platform accelerates digital
transformation across the enterprise and empowers everyone to
integrate faster and easier. Whether you are automating business
processes, democratizing data, or delivering digital products and
services, SnapLogic enables you to simplify your technology stack
and take your enterprise further. Thousands of enterprises around
the globe rely on SnapLogic to integrate, automate and orchestrate
the flow of data across their business.
Join the Generative Integration movement at snaplogic.com.
Connect with SnapLogic via our Blog, X (Twitter), Facebook, or
LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20240718807547/en/
Press: Adrian Richardson SnapLogic (US & APAC)
arichardson@snaplogic.com +1-510-279-9773
Gemma Smith SnapLogic (EMEA) gsmith@snaplogic.com