Technical debt and cloud issues are the biggest barriers to digital transformation for many companies

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Digital transformation is a complex process

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Technical debt is the biggest barrier to digital transformation for businesses across Europe, the Middle East and Africa, new research has claimed.

A report from Red Hat found that one in four (28%) businesses across EMEA had their digital transformation hampered by technical debt that has accumulated over time.

With the stark reality of companies’ pasts preventing them from developing, cloud management is set to be the biggest investment priority in the region over the next 12 months, says Red Hat.

Digital transformation issues

This study aligns with others in its finding of a broad array of infrastructure landscapes – it’s not the first to reveal that on-prem applications come out on top (at 47%). A further 40% of businesses had adopted hybrid cloud environments, leaving just 12% in the public cloud.

The respondents confirmed that data privacy and security were among the top reasons for choosing to run at least some of their applications on-premises, however cloud environments remain attractive for their cost benefits.

Besides the complexities surrounding the decision to go fully cloud, on-prem, or a hybrid of the two, managers also noted that manual processes and IT operations, as well as skillset and talent gaps, are leading to poor digital transformation results.

In terms of funding priorities for the year ahead, network security, threat intelligence, detection and response, and vulnerability management all look to be key focus areas.

Despite the barriers to digital transformation, the report finds that automation across security and cloud services is gaining traction. The insights also suggest that cloud will account for a larger proportion of business operations, with the sector set for a spending boost this year.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!