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PUBLISHER: IDC | PRODUCT CODE: 2079478

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PUBLISHER: IDC | PRODUCT CODE: 2079478

How to Promote Application Modernization to European Boards

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PAGES: 11 Pages
DELIVERY TIME: 1-2 business days
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This IDC Perspective provides European CIOs with the framing, evidence, and arguments needed to win sustained board support for application modernization in 2026. Three structural pressures converge on the European application estate: macroeconomic discipline, the AI mandate, and the weight of the legacy estate itself. Compliance and digital sovereignty have shifted from optional considerations to structural costs that reshape the modernization road map. AI plays two distinct roles: as the forcing function for modernization and as the enabler that makes previously uneconomic modernization feasible. Modernization itself is now best understood as a risk management posture that reduces cyber, regulatory, operational, talent, and geopolitical exposures in parallel.This IDC Perspective provides modular arguments and a set of CIO practices to translate the modernization case into board approval. "Boards only see a system that still works and not the cost of legacy. But AI is the only technology in twenty years that simultaneously makes application modernization more necessary and more affordable. European CIOs who act on that paradox now will compound the advantage for a decade. Those who wait will pay for both the deferred modernization and the deferred AI return at the same time," said Cyrille Chausson, research manager, IDC.

Product Code: EUR152265425

Executive snapshot

  • Key takeaways
  • Recommended actions

Situation overview

  • A new context: Modernization meets geopolitical pressure and the AI mandate
  • The weight of legacy and technical debt
  • Compliance and sovereignty: A structural cost that reshapes the road map
  • Unlocking modernization: AI as an enabler
  • The hidden half: Operating model and culture
  • Key messages for board-level discussion
    • Modernization is a growth decision
    • Modernization is the foundation and the enabler of the AI strategy the board already approves
    • Modernization mitigates the risk posture of the organization and maintains a continuous compliance and sovereignty balance
    • Modernization reduces the structural cost of the legacy estate
    • Modernization creates a virtuous self-funding cycle
    • Modernization strengthens the employer brand and attracts talent in the context of structural skills shortage

Advice for the technology buyer

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  • Related research
  • Synopsis
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