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The largest provider of IT infrastructure services in the world Kyndryl has published a startling new analysis that shows how global businesses are struggling to manage the demands of aging network infrastructure, data sovereignty, and quantum computing at the same time. According to the findings, which were included in the Kyndryl Readiness Report’s 2025–2026 Security and Networks Snapshot, most businesses are still essentially unprepared for the “triple threat” of these convergent demands, despite record investments in modernization.
The survey, which involved 3,700 business and technology professionals from 21 different nations, served as the basis for the report. It draws attention to a crucial mismatch whereas businesses are investing heavily in next-generation infrastructure, their fundamental systems are frequently too disjointed or antiquated to meet the intricate demands of the current AI era.
The Quantum Paradox: Investment vs. Preparedness
Quantum technology is one of the research’s most worrisome gaps. Despite the fact that 62% of businesses say they are actively investing in quantum, there is a significant lack of urgency about its immediate effects. As a matter of fact, just 4% of leaders believe that quantum computing will have the biggest immediate impact.
This gap has resulted in a risky strategic void. About 20% of executives said they are worried that their present quantum efforts could not yield a quick return on investment, which could be leading them to ignore urgent security threats. The paper also warns against “harvest now, decrypt later” assaults, in which malevolent actors steal encrypted material now with the goal of decrypting it once quantum computers are strong enough. Kyndryl highlights that to avoid future catastrophic data breaches, post-quantum cryptography planning needs to shift from a secondary worry to an essential executive priority.
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Data Sovereignty as a Design Constraint
Businesses are also dealing with a quickly changing regulatory environment, as if the quantum threat weren’t enough. The ability of a country or business to manage its own data, or “digital sovereignty,” has evolved from a compliance “afterthought” to a core design constraint for enterprise architecture.
According to the report, 84% of leaders think that policies pertaining to data sovereignty and repatriation have become much more crucial in the last year. Additionally, 86% of respondents said that cloud providers’ regulatory alignment is now a crucial consideration when making infrastructure decisions. Businesses are being pushed to reconsider their entire cloud and data strategy to make sure they do not violate local laws as governments tighten regulations about where data may be stored and who can access it.
Legacy Networks: The Achilles’ Heel of AI
The condition of business networks is the third pillar of the readiness gap. Many firms are trying to operate these sophisticated workloads on “exhausted” infrastructure, despite the fact that the world is focused on the potential of artificial intelligence (AI). Uninterrupted, high-quality data flows are necessary for AI-driven operations, but according to the report, 25% of servers, storage, and mission-critical networks are currently nearing end-of-service.
Just 37% of executives think their network infrastructure is prepared to handle future challenges, despite significant investments in contemporary tools. Aging networks are now the main obstacle to growing recent technological investments, according to 20% of leaders. According to the paper, even the most sophisticated AI ideas won’t have the desired effect without an updated network.
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The Danger of “Isolated Approaches”
Paul Savill, Global Practice Leader for Cyber Security and Resiliency, Network and Edge at Kyndryl, cautions against seeing these difficulties as distinct problems. According to Savill, “aging networks, changing data sovereignty regulations, and quantum threats are connected pressure points on the same system, not distinct challenges.”
According to the study, operational blind spots result from siloed approaches to modernization, where one team manages quantum, another handles compliance, and a third handles network changes. The resilience needed to scale corporate operations in a worldwide market that is becoming more unstable is limited by these limitations. According to Savill, companies that are “engineered for agility, sovereignty awareness and quantum readiness” will be the ones to foster the kind of trust that is necessary for real innovation.
Building a Resilient Future
Kyndryl, which offers vital services in a variety of sectors, including banking, healthcare, government, and manufacturing, is putting more of an emphasis on assisting customers in closing these gaps. To help consolidate enterprise IT processes and more confidently navigate cyber risks, the organization recently started initiatives including the Cyber Defense processes Center.
Through platforms like Kyndryl Bridge, an open integration platform, and Mainframe Modernization services, the company is trying to convert legacy environments for the hybrid cloud era . The opportunity for action is dwindling, though, as the most recent Readiness Report makes evident. Businesses need to adopt a cohesive approach that tackles the convergent needs of security, sovereignty, and connectivity to prosper in the AI era.
The message for company executives is very clear: the innovations of the future cannot be supported by the infrastructure of the past. Closing the preparedness and investment gap is imperative.
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