Cloud and technical debt initiatives go hand in hand
Between december 2021 Y January 2022, LeanIX surveyed EA and IT leaders from more than 140 global companies. According to the survey results, technical debt reduction is a clear priority for EAs. Technical debt—unplanned extra work a business must do to update or change technical systems—poses a security risk, adds avoidable costs to IT operations, and hampers innovation. The survey found that ABOs are eager to tackle this challenge:
- 96% of those surveyed acknowledged that their company has at least one project planned for this year aimed at reducing technical debt.
- 52% of respondents said that retiring IT applications, which are no longer used but still consume resources, is the main initiative to reduce technology debt.
In addition to the risk and inefficiency associated with it, technical debt also affects other critical organizational priorities and initiatives, such as cloud migration. 24% of respondents indicated that cloud initiatives should be an IT priority. This relatively low number could be due to the fact that many companies already have at least some workloads in the cloud or have already started their cloud transformation journey. When asked which cloud initiatives were most important, the survey found that 60% of EAs are focusing on moving key applications to the cloud. Cloud migration, when done right, means optimizing for the cloud. Technical debt can get in the way of this optimization, so technical debt management is a necessary adjunct to a successful cloud strategy.
The second most important cloud initiative (41%), according to the survey, is to increase the amount of SaaS in enterprise application portfolios. Replacing homegrown or on-premises systems with SaaS solutions is a proven method of reducing technical debt.
Additional considerations for IT leadership
Based on the survey results, EAs and IT leaders are clearly focused on reducing technical debt and moving key applications to the cloud. However, there are other IT strategies that are on the rise:
- Key security initiatives are highlighted: While only 16% of respondents considered evolving and improving their security posture a top priority, more than two-thirds overall saw security initiatives such as improving risk assessment capabilities and adoption of more Zero Trust technologies as important or very important.
- The case of value stream management (VSM): 73% of respondents agree that expert advisors should form a closer connection with software development and expand collaboration. Nearly three-quarters of respondents agree on the importance of tracking the business impact of software development, a key principle of VSM.
- Lack of Commitment to Sustainability: Many companies publicly affirm a commitment to sustainability, but only 52% of IT leaders surveyed reported concrete sustainability initiatives in their organizations by 2022. Most of these initiatives focused on data collection and reporting.
Corporate IT and Product IT rely on the LeanIX Continuous Transformation Platform® for end-to-end visibility and superior governance. Global customers organize, plan and manage IT environments with LeanIX’s automated, data-driven approach. By offering enterprise architecture, SaaS management, and value stream management, LeanIX helps organizations make sound decisions and accelerate transformation processes. LeanIX has hundreds of clients all over the world, including Adidas, Atlassian, Bosch, Dropbox, Santander or Workday. The company is based in Bonn, Germanywith offices in Boston, San Francisco and around the world