With technology changing rapidly every year, it can be difficult to get ahead of the curve and prepare for incoming IT challenges. But with a well-crafted five-year roadmap, you can turn uncertainty into opportunity and set your organization up for the future of modernization.

Our latest report, The 2030 IT Blueprint: How Mid-Market Enterprises Are Reimagining Modernization, uncovers the IT trends shaping strategies over the next five years through a survey of 500 IT decision-makers (ITDMs). Here are six critical findings to consider for your modernization plan.

6 IT Trends Shaping Modernization Strategies

While the IT sector is evolving in many different ways, some of the most impactful tech trends include the solidification of AI and machine learning, the acceleration of hybrid cloud infrastructure, shifts in cybersecurity and compliance priorities, and growing skills gaps, IT costs, and sustainability concerns.

1. Artificial Intelligence and Machine Learning: Embracing AI as Core Architecture

For mid-market enterprises, integrating AI and automation with virtually every business function is the top IT modernization priority for the next five years.

AI and machine learning (56%), AI infrastructure (51%), and AI-powered cybersecurity technologies (49%) dominate emerging tech investments through 2030.

While AI/ML technologies were once a small part of an organization’s overall tech stack, they are now starting to make their way into the core architecture of many organizations. This is due, in great part, to the growing use cases of these solutions.

Some examples of modern applications for large language models (LLMs) and other AI systems include:

• Robotic process automation for rules-based tasks
• Agentic AI for complex tasks like real-time threat detection and highly personalized customer service
• Predictive analytics for spotting trends humans may miss by identifying early signals from vast amounts of data
• Sensors that detect the need for preventative maintenance on factory floors
• Real-time investment recommendations with better risk management
• Smart grids that apply power to specific areas based on current usage and demand

2. Hybrid Cloud Infrastructure: The Acceleration of Cloud Repatriation

A hybrid cloud migration strategy can be a great compromise for organizations that wish to improve scalability and flexibility, but still need specific configurations or additional security controls offered by private infrastructure for sensitive workloads. As a result, many IT professionals are shifting away from an all-or-nothing approach.

Almost half of all organizations (46%) are embracing a hybrid-by-design cloud strategy. 

Mid-market enterprises aren’t just embracing cloud adoption. For many, going hybrid means moving select cloud workloads back to on-premises environments, as is the case with cloud repatriation projects.

Over 80% of IT leaders have either repatriated workloads from the public cloud or are actively contemplating it.

3. Cybersecurity and Compliance: Tackling Emerging IT Risks with Data Protection

Cybersecurity and privacy concerns are the top challenges organizations anticipate facing in their IT modernization. Over the next five years, our respondents are especially narrowing in on four key areas:

The top cybersecurity priorities through 2030 are addressing cloud security (49%), employee training and awareness (43%), 24/7 monitoring and response (40%), and identity and access management (40%). 

An increased focus on security and compliance measures can be driven by a number of factors, including the growing challenges of ransomware, including double extortion, and regulations like data sovereignty laws.

4. IT Skills Gaps: The Human Barrier to IT Modernization

Innovating effectively requires the right expertise, and for most organizations, finding the right skills to navigate technological advancements can be hard to find.

IT skills shortages have hindered emerging technology adoption for 90% of organizations.

A majority of decision-makers believe their biggest IT skills gap is in cloud architecture and engineering, followed closely by cybersecurity and compliance.

While it can feel like these internal gaps create an immovable barrier to progress, many organizations are effectively leveraging third-party experts for IT staff augmentation. For IT leaders, a partnership with a managed IT services provider can move digital transformation projects forward while eliminating the time and expense of recruiting, retention, and upskilling initiatives.

5. Rising IT Costs: Managing the Growth of Cloud Computing Expenses

Cloud budgets have continually grown in recent years, making managing cloud costs a top priority for mid-sized businesses.

42% of organizations allocate approximately 26% to 50% of the IT budgets to cloud services.

Lack of transparent pricing, fluctuating usage, and inadequate upfront planning can all lead to runaway spending in cloud computing. To reduce high cloud bills related to over-provisioning or unexpected data egress fees, businesses can engage in different cloud cost optimization strategies, including forming FinOps teams, implementing cloud cost management platforms, and rightsourcing resources. 

6. Sustainable IT Practices: Addressing the Long-Term Impact of Technological Advancement

Energy consumption is at an all-time high in the IT industry. As resource demands increase and pressures mount to meet environmental, sustainability, and governance (ESG) standards, organizations are looking to improve the sustainability of their workloads.

Sustainability has emerged as the second-most important factor influencing IT strategy through 2030, after emerging tech like AI and edge computing. 

This technology trend can support cost-cutting strategies, helping mid-market enterprises make the most of finite resources. Businesses can also use sustainability as a strong differentiator, allowing them to stand out for both top talent and customers seeking organizations that engage in sustainable practices. 

With demand for computing power growing, some of the fastest-rising sustainability measures in the technology landscape are focused on the energy efficiency of data centers. For instance, data center operators are adopting advanced solutions like liquid-air hybrid systems and direct-to-chip cooling. Beyond optimizing these facilities, IT leaders are making commitments to extend equipment life, engage in green coding practices, optimize cloud environments, and sign Power Purchase Agreements (PPAs) to invest in more renewable energy sources.

How Businesses Can Prepare for Rising IT Trends

Businesses can prepare for these key trends and remain competitive by focusing their IT strategy on managing risk, innovating in a way that responds to key business objectives, maximizing resilience, and outsourcing needs strategically.

Strengthen Resilience with Agile IT Strategies

Whether you’re faced with cyberattacks, natural disasters, or global market shifts, it’s important to build resilience with agile IT strategies. Increasingly, IT leaders are balancing their efforts between flexible, short-term strategies and long-term modernization needs.

For example, organizations may prioritize adaptable strategies like workload optimization in the near-term, while laying the foundations for progressive AI implementations with broader IT architecture investments through 2030. Consider how your upcoming moves can flex with the latest IT trends and contribute to more sustainable, long-range planning.

Conduct Regular Risk Analyses to Balance Scalability and Security

When businesses grow their IT resources to meet demands, security risks can also increase. Conducting regular, comprehensive risk analyses, including assessments of cyber risks, can help businesses identify possible sources of compromised security and compliance before they pose a larger issue. For example, IT teams may assess how access controls and encryption are implemented alongside new applications or resources and evaluate whether any changes introduce new vulnerabilities.

Drive Innovation with DevOps and Agile Methodologies

To meet growing technological expectations, organizations need to accelerate development processes, but without precautions, increased speed can lead to decreased quality or security lapses. DevOps and Agile methodologies can counter these issues, particularly with DevSecOps teams that combine the skills of software development, operations, and cybersecurity professionals.

DevOps and Agile methodologies prioritize automating processes like software deployment and infrastructure provisioning, which can reduce errors and optimize resource use, while facilitating a faster time to market. Taking a DevOps or similar approach can also reduce costs associated with replacing manual processes, allowing IT teams to reallocate funds for innovation. 

Leverage the Expertise of Managed Services Providers

IT decision-makers aren’t just looking internally for expertise. To meet key modernization goals, such as integrating emerging technologies into core business processes, they’re also relying on outside help to augment their teams.

By 2030, 2 out of 3 leaders expect to have a hybrid mix of in-house and outsourced managed services as part of their IT structure.

Strategize for the Future of IT

When you align your modernization roadmap with rising IT trends, your enterprise can drive innovation and move faster toward key business objectives. With Tierpoint’s comprehensive report, The 2030 Blueprint: How Mid-Market Enterprises Are Reimagining Modernization, you can explore more original research and statistics on how middle-market IT leaders are addressing technological advancements, critical challenges, and other macrotrends. Download a copy and learn more about how you can organize your efforts for success.

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