The Cloudflare report, 2026 App Innovation Report, reveals a pressing issue confronting organisations in Asia: the ‘technical glass ceiling’ stifling both AI growth and cybersecurity resilience. The findings highlight that firms prioritising application modernisation—updating legacy systems—are three times more likely to reap the rewards of AI investment, while those remaining anchored to outdated infrastructures face escalating risks and rising costs.
As organisations continue to embrace digital transformation, the urgency for modernisation becomes increasingly apparent. Failing to update technology not only hampers progress but actively pushes companies backward, allowing competitors to surge ahead.
Those clinging to legacy systems are entrapped in a cycle of high maintenance expenses and a critical drain on developer talent. They often allocate the lion's share of their IT budgets to merely sustaining operations, leaving precious little for innovation.
Cloudflare CEO and co-founder, Matthew Prince, emphasized that a modern and secure foundation is essential for organisations aiming to leverage AI effectively. "If you aren't modernising your business to embrace AI and prevent the next wave of cyberattacks, you’re not just standing still; you’re rapidly falling behind," he stated.
This sentiment echoes the findings of the report, which underscores that infrastructure will define the winners in the evolving digital realm.
Key highlights from the report include:
- Modern Infrastructure as a Gateway: Companies that modernise their applications are 93% more likely to boost AI capabilities, reinforcing the idea that up-to-date infrastructure is vital for AI success.
- Shifting AI Mindsets: The focus has shifted from mere adoption of AI to its deep integration. A noteworthy 91% of leading firms have integrated AI into their offerings, with 74% planning to enhance these integrations in the upcoming year.
- Security as a Growth Enabler: Rather than serving solely as a protective measure, aligning security with modernisation can enhance organisational capabilities, making firms four times more likely to achieve advanced AI maturity.
- Cost of Inaction: Delaying technological updates poses significant risks; organisations that lag in modernisation report 85% less confidence in their infrastructure and often make updates only after experiencing security breaches.
- Tool Overload: Many organisations grapple with overly complex tech stacks. The report reveals that 96% of companies struggle with this complexity, while 85% of leaders are actively working to consolidate redundant tools and eliminate shadow IT, fostering agility.
The findings underscore the importance of prioritising application modernisation as a cornerstone of a robust cybersecurity and AI strategy.
