Kyndryl has revealed a growing enterprise readiness gap as organizations struggle to keep pace with the combined impact of quantum computing risks, stricter data sovereignty regulations, and aging network infrastructure. The findings, part of the company’s latest Kyndryl Readiness Report 2025–2026, show that while enterprises are increasing investments in next-generation technologies, many are still not fully prepared to manage the operational and security challenges that come with them.
According to the report, businesses are often addressing modernization efforts in isolation, treating quantum readiness, regulatory compliance, and network upgrades as separate initiatives. This fragmented approach creates gaps in resilience and limits the ability to support AI-driven and data-intensive operations at scale. The study is based on insights from 3,700 business and technology leaders across 21 countries.
One of the key concerns highlighted is the rise of quantum-related security risks. While 62% of organizations said they are investing in quantum technologies, only a small percentage consider quantum to be an immediate priority. This mismatch increases exposure to future threats such as “harvest now, decrypt later” attacks, where encrypted data stolen today could be broken using quantum computing in the future. The report suggests that planning for post-quantum cryptography should begin now to avoid long-term security risks.
The research also points to data sovereignty requirements as a major factor reshaping enterprise architecture. As governments introduce stricter rules on data location and access, organizations are being forced to redesign cloud and data strategies to ensure compliance. More than 80% of respondents said data sovereignty regulations have become more important over the past year, while most leaders expect cloud providers to demonstrate stronger regulatory alignment.
Another major challenge is aging network infrastructure, which is slowing the adoption of AI and other advanced technologies. The report found that a significant portion of mission-critical networks, storage systems, and servers are approaching end-of-service, and many leaders see network limitations as a barrier to scaling new technology investments. Despite increased spending, only a minority of organizations believe their current infrastructure is ready for future risks.
Kyndryl said the findings highlight the need for a more integrated approach to modernization, where quantum readiness, regulatory compliance, and network transformation are addressed together to ensure enterprises can securely support the next phase of AI-driven innovation.