Data security is still the most pressing issue for many firms - so what can your business do?

• Most IT teams are worried about data security, particularly around hybrid cloud
• The whole data foundation needs rewriting to boost quality and prepare for AI
• Companies are also struggling with a lack of talent and legacy systems

More than two in three (69%) IT leaders agree data security is their top modernization concern for 2026 per new Rocket Software research, and barely a third of them feel 'extremely confident' they'd pass their next regulatory audit.

The report found the strongest confidence comes in relation to insider threats – nearly four in five (78%) think they could detect these.

Instead, most IT leaders are worried about evolving hybrid IT complexity, with half (51%) stating that bridging cloud and on-prem environments is a core challenge.

Data security is a big focus, but it needs a lot of work

At the moment, data quality (62%), access control (52%), secure data movement (50%), governance consistency (46%) and rising storage costs (45%) are all presenting as hurdles for hybrid cloud security.

Then there's the fact that inadequate modernization efforts so far are just adding to the pressure – 48% still rely on legacy systems for critical operations and 52% are struggling to find skilled workers. Only 35% believe their teams have the right skills to support today's systems.

Unsurprisingly, Rocket Software floated AI tools as a potential fix, noting its perceived impacts across security and fraud detection, internal process optimization and customer experience.

But even that isn't without its challenges, with just one-quarter 'extremely confident' that their current infrastructure can support AI. So together with data security investments, two in three companies are also prioritizing data accessibility for AI systems.

"This research makes it clear that IT leaders need integrated, secure ways to connect data and applications across core systems and the cloud," Data Modernization Business Unit President Michael Curry concluded.

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