Tech, Media and Telecoms (TMT) companies face a paradox in their digital transformation journey. Legacy systems hinder 72% of tech transformers and 56% of media and telecoms leaders. Yet simultaneously, 87% of tech and 65% of media and telecoms transformers confirm cloud technology delivers essential scalability benefits. This old-versus-new tension represents both the TMT sector's greatest digital evolution challenge and opportunity.

The findings from VML's comprehensive "Unlocking the Power of Digital Transformation in Tech, Media & Telecoms" report reveal a striking reality: cloud adoption has fundamentally altered how organizations approach transformation. A remarkable 85% of tech transformers report that cloud engineering has changed their transformation approach when compared to previous projects. . This isn't merely an incremental improvement, it's a paradigm shift in how digital change is conceptualized and executed. Interestingly the picture is more ambivalent in media and telecoms, however, with just 59% of transformers saying that the cloud has changed the way they approach transformations

The strategic advantage of hybrid cloud approaches

For TMT marketers, this creates a compelling narrative opportunity. While competitors focus on selling complete system replacements, our research indicates that 79% of technology, and 61% of media, leaders believe a hybrid approach - integrating new cloud capabilities alongside optimized legacy systems - delivers superior results than the "rip and replace" methodology. This balanced perspective resonates with the 74% of transformers (and 56% of media and telecoms transformers) who feel too much emphasis is placed on purchasing new technology rather than maximizing existing investments.

“You can still achieve significant improvements in efficiency, customer experience, and ultimately ROI” says Brian Yamada, Chief Innovation Officer, VML. “This allows you to maximize the value of your current investments while strategically positioning your business for future success.”

The cloud's transformative impact extends beyond mere technical capabilities. Four in five technology transformers (82%) report that moving to cloud technology will help them address future integration challenges between legacy and new platforms, dropping to three in five in media and telecoms transformers. This forward-looking perspective is critical in an industry where 65% of technology, and 54% of media and telecoms, respondents start without a clear roadmap or end goal.

Eric Pfeifer, Executive Director – Digital Products and Platforms, VML, adds that “the act of migrating to the cloud commonly evolves how companies approach projects, enabling greater agility. This shift allows businesses to modernize their technical architecture and align internal teams for more efficient delivery.” This flexibility is crucial for organizations to adapt as objectives evolve, which is a serious advantage when 77% of technology, and 58% of media and telecoms transformers, acknowledge that transformation objectives typically change throughout the project lifecycle.

You can still achieve significant improvements in efficiency, customer experience, and ultimately ROI. This allows you to maximize the value of your current investments while strategically positioning your business for future success.”

Brian Yamada

Chief Innovation Officer, VML

Navigating implementation challenges for competitive advantage

However, the path to cloud integration isn't without challenges. Nearly three-quarters (74%) of technology respondents found integrating cloud with legacy systems more complex than anticipated, compared to 54% of media respondents. This complexity is exacerbated by the fact that over two thirds of tech transformers, and over half of media and telecoms transformers, report their system requirements aren't fully documented, creating significant implementation hurdles.

For TMT marketers, these challenges represent an opportunity to position your brand as a strategic partner rather than just a technology provider. By highlighting your expertise in hybrid modernization approaches that strategically update critical systems while preserving valuable legacy assets, you'll address the fundamental tension at the heart of modern digital transformation.

The security implications of cloud migration also merit attention. With 71% of technology sector transformers expressing concern that legacy systems put business security and continuity at risk, cloud solutions that address these vulnerabilities while maintaining operational continuity offer compelling value propositions.

The key takeaway for TMT marketers is clear: successful digital transformation isn't about wholesale replacement of existing technology, it's about strategic integration that balances innovation with pragmatism. By positioning your cloud solutions as enablers of this balanced approach, you'll resonate with the 77% of technology transformers, and 59% of media and telecoms transformers, who acknowledge that while starting with a blank slate might be ideal, it would simply take too long and cost too much.

Instead, showcase how your cloud offerings can create a bridge between current capabilities and future aspirations, enabling the scalability and flexibility needed for sustainable digital growth while maximizing return on existing investments.

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