Build a Strategy to Modernize Your Infrastructure

Align your business and IT goals, then define your guiding principles to set direction.

EXECUTIVE BRIEF

Analyst perspective

It’s not just about the technology!

In the rapidly changing digital era, a strategic approach to infrastructure modernization is crucial for organizations aiming to maintain competitive advantage, drive innovation, and ensure long-term resilience. Modernizing IT infrastructure is not just a technical upgrade; it is a strategic imperative that encompasses a holistic transformation of storage, backup, telecommunications, networks, and network components. The strategy begins by redefining how the organization's infrastructure aligns with its broader business goals, focusing on enhancing agility, optimizing costs, and strengthening security.

This strategic alignment involves a shift toward adopting modern technologies such as cloud computing, software-defined networking, edge computing, hyperconverged infrastructure, and unified communications. These innovations enable organizations to become more adaptive, scalable, and efficient while simplifying management and improving performance. Emphasizing a security-first mindset, the strategy incorporates zero trust architecture, advanced threat detection, and comprehensive data protection to mitigate evolving risks.

By fostering a culture of continuous improvement and driving organizational alignment around modernization goals, this strategy ensures that infrastructure evolution supports the organization’s mission and vision. It empowers leaders to make informed decisions, prioritize investments, and leverage technology as a catalyst for growth, innovation, and operational excellence in the face of rapidly evolving market dynamics.

John Donovan

Principal Research Director, I&O
Info-Tech Research Group

Executive summary

Info-Tech Insights

Think future state first!

The traditional approach to gap analysis has an inherent anchoring bias: discussing the current state first results in iterative and more-of-the-same approaches to closing the gap. While historically safe, such approaches tend to result in lost opportunities for innovation and transformation. Having future state discussions first enables a bold vision that can merely be tempered, not defined, by current state constraints.

Become a strategic enabler

Infrastructure modernization requires I&O teams to shift from traditional infrastructure management to strategic enablement, driving agility, innovation, and operational excellence through effective integration of people, process, and technology. Understand the business goals, align IT goals, and deliver for your customer through guiding principles.

Future-proof your infrastructure

By anticipating emerging technologies and trends, you can proactively plan and organize your team for future needs. By investing in scalable, flexible infrastructure, such as cloud services, automation, and AI technologies, while continuously upskilling IT teams, you can stay relevant and forward-looking in the digital space.

Executive summary

Info-Tech Insight

The traditional approach to gap analysis has an inherent anchoring bias: discussing the current state first results in iterative and more-of-the-same approaches to closing the gap. While historically safe, such approaches tend to result in lost opportunities for innovation and transformation. Having future state discussions first enables a bold vision that can merely be tempered, not defined, by current state constraints.

Top challenges reported by Info-Tech members

Lack of strategic direction

• Infrastructure leadership must discover the business goals.

Time seepage

• Project time is constantly being tracked incorrectly.

Technical debt

• Aging equipment is not proactively cycled out with newer enabling technologies.

How well do you know your business strategy?

A mere 25% of managers can list three of the company’s top five priorities.

Based on a study from MIT Sloan, shared understanding of strategic directives barely exists beyond the top tiers of leadership.

Source: MIT Sloan, 2018

The state of IT modernization

Business transformation objectives

“Insight commissioned IDG Research Services to conduct a survey of 200 executives regarding modernization strategy”
(TechTarget, 2020).

67%

67% of respondents cited IT modernization as crucial to their transformational objectives.

Source: TechTarget, 2020

25%

Only 25% achieved their initial goals.

Source: TechTarget, 2020

Top three barriers to achieving infrastructure modernization success:

• Integrating cloud, on-premises, and edge platforms.
• Establishing new governance strategies and processes
• Defining and optimizing new IT operating models

Source: TechTarget, 2020

Info-Tech Insight

A well-defined strategy for infrastructure modernization is crucial for aligning technology investment with business goals. It ensures the modernization efforts are deliberate and targeted, helping businesses optimize performance scalability and security with minimum disruptions.

What is an infrastructure modernization strategy?

A path to technical transformation.

What It Will Not Do

A strategy will not define the specifics and minutia of what needs to be done. This exercise does not have an output that plans for what specific hardware or applications need to be transformed and when. Strategy is not documented in roadmaps or implementation plans.

What It Will Do

A strategy requires building out the framework for ongoing decision-making. It is meant to be high level and achieve a large goal. The outcome of a strategy is often a consensus, leading to a sense of commitment to the goal and better communication on the topic.

Why Do It?

A strategy is built to capture an organization's aspirations and goals on a specific topic and define future direction. This will allow for educated decisions defined by the strategy on where the organization will choose to play or not play, what capabilities need to be built or maintained, and what management systems are required for operations.

Components of a strategy

Info-Tech’s working definition of an infrastructure modernization strategy has six major areas.

1. Mission: To define a strategy and have it understood in context, you must first define your function (in the strategic context) and reason for existence.
2. Vision: The strategic vision encompasses the desired future state, focusing on the ends, not the means used to get there.
3. Drivers: The drivers of a strategy describe the “Why now?” and outline the reasons for the strategic direction.
4. Goals: The goals are broad statements of direction that support the vision and mission of a strategy.
5. Guiding Principles: The guiding principles outline the boundaries of the strategy. In the absence of a specific strategic direction, they provide guidance.
6. Strategic Initiatives: The strategic initiatives are the major programs that will encompass the initiatives needed to execute the strategy and adhere to standards.

Decision tree

Refresh: Do the same thing in a new format with enhanced/new features and new gear.

Repurchase: Buy more of the same.

• You are on the lower end of modernization, or you don’t need to change what you do. Pursue RFP process.

Transform: Do things in a new format with new gear and change the business process and structure around it.

• You need to change what you do. Develop strategy first and then build RFP.

Strategic framework

Using Info-Tech’s approach, identify the degree of modernization required:

1. Repurchase
2. Refresh with new/enhanced features
3. Transform

You need to figure out where you land on this scale. If you need to significantly modernize and transform your infrastructure component, you need to document a strategy before you even begin the RFP process.

Infrastructure domain definitions

• Hardware: Servers, computers, data centers, and switches
  • Purpose: Forming the backbone of the IT architecture
• Software: Applications and operating systems
  • Purpose: Enabling day-to-day business functions and processes
• Networking: Includes routers, hubs, and firewalls
  • Purpose: Effective network management for communication and data exchange
• Data Storage Solutions: Secure and scalable storage systems
  • Purpose: Necessary to safeguard and manage data efficiently
• Cloud Services: Cloud technology for flexible resources and software
  • Purpose: Reducing the need for physical infrastructure
• Cybersecurity Measures: Strong security protocols for disaster recovery, firewalls, and antivirus software
  • Purpose: Protecting against threats and ensuring data integrity and privacy

“IT infrastructure consists of all components that somehow play a role in overall IT and IT-enabled operations. It can be used for internal business operations or developing customer IT or business solutions.”

Source: Techopedia, 2024

“IT infrastructure is based on various components that aim to manage the internal business ecosystem or provide services outside the business. The better and more thoughtfully the infrastructure is organized, the more a business can profit and expand.”

Source: FreeCodeCamp, 2022

Executive brief case study

Cognizant

INDUSTRY

Healthcare

SOURCE

Cognizant

US-based healthcare provider

A US-based health plan provider faced significant operational challenges due to an outdated IT infrastructure that struggled with batch production stability and lacked robust disaster recovery mechanisms.

The legacy system was slow to adapt to the latest technologies, which hindered the provider's ability to offer modern, cloud-enabled services to its members. As part of a broader strategic goal to improve member services and operational efficiency, the provider needed an infrastructure that could support its cloud-driven digital transformation and prepare it for future technology enhancements.

Solution

The health plan provider partnered with Cognizant to develop a comprehensive modernization strategy centered on migrating its core applications and data to Microsoft Azure. This included migrating critical databases, optimizing applications for cloud performance, and enhancing data security and compliance measures.

The transition to Azure enabled the provider to implement cloud-native capabilities, improve disaster recovery, and support real-time data processing, making it easier to deploy new digital services for members. Cognizant’s phased migration approach also ensured minimal disruption to ongoing services and operations.

Results

Improved Operational Efficiency: The Azure-based infrastructure facilitated smoother batch processing and significantly reduced operational downtime.

Enhanced Disaster Recovery and Business Continuity: The provider implemented a robust disaster recovery plan on Azure, ensuring data redundancy and swift recovery in case of system outages.

Future-Ready Infrastructure: The health plan provider now has a flexible, scalable infrastructure capable of supporting future digital services, improving its ability to deliver a seamless and responsive experience to members.

Metrics for measuring infrastructure modernization

How to measure a successful modernization plan

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit

"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."

Guided Implementation

"Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."

Workshop

"We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework in place."

Executive & Technical Counseling

"Our team and processes are maturing; however, to expedite the journey we'll need a seasoned practitioner to coach and validate approaches, deliverables, and opportunities."

Consulting

"Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."

Diagnostics and consistent frameworks are used throughout all four options.

Blueprint deliverables

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

IT Infrastructure Modernization Strategy Report Template

Create initiatives and align to business goals, effort, scope, and benefits.

Future State, Constraints, and Mitigation Workbook

Use this workbook to capture what you are modernizing, your constraints, and your mitigation steps.

Key deliverable:

IT Infrastructure Modernization Strategy Presentation Template

Includes:

• Mission and vision
• Drivers
• Goals and guiding principles
• Constraints
• Standards
• Initiative templates

Blueprint benefits

IT Benefits

• Aligned Technology Strategy: A well-defined mission and vision provide direction, ensuring that IT investments and initiatives are aligned with the long-term goals of the organization.
• Efficient Prioritization of Resources: By identifying key drivers and setting clear goals, IT can prioritize high-impact projects, focus on essential upgrades, and allocate resources more effectively.
• Consistency and Predictability: Established standards and guiding principles help IT teams follow consistent protocols, reducing variability and increasing predictability in infrastructure performance and maintenance.
• Scalable and Resilient Infrastructure: With standards that emphasize scalability and reliability, IT can build an infrastructure that adapts to growth, minimizes downtime, and ensures resilience.

Business Benefits

• Clear Organizational Direction: A mission and vision centered around modernization provides a shared purpose, enabling business leaders and IT teams to work toward common objectives.
• Enhanced Decision-Making: Drivers and guiding principles help business leaders understand the strategic value of IT initiatives, facilitating better investment and resource allocation decisions.
• Alignment with Business Growth: Goals focused on scalability and adaptability ensure that IT infrastructure can support current business needs while being flexible enough to accommodate future growth.
• Competitive Advantage: An infrastructure built on strategic goals and guiding principles positions the organization as a leader, capable of adapting quickly to market shifts and realizing new opportunities.

Guided Implementation

What does a typical GI on this topic look like?

A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

A typical GI is 8 to 12 calls over the course of 4 to 6 months.