Kyndryl Confirms Converging Quantum, Data Sovereignty and Network Demands Expose Enterprise Readiness Gap
"Quantum threats, evolving data sovereignty rules and aging networks are not separate challenges; they are connected pressure points on the same system," said
The report highlights that isolated approaches to quantum readiness, sovereignty-aware architecture and network modernization result in gaps between these domains that create operational blind spots and limit the resilience required to scale AI-driven business operations.
Key findings from the report include:
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Quantum risk is rising faster than preparedness. While 62% of organizations report investing in quantum technologies, only 4% of leaders see quantum as the most impactful near‑term technology. At the same time, 20% worry current quantum investments may not deliver short‑term ROI. This misalignment increases exposure to "harvest now, decrypt later" attacks, making post-quantum cryptography planning an immediate executive priority.
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Data sovereignty is redrawing the enterprise architecture landscape. As governments tighten rules around data location and access, digital sovereignty is becoming a design constraint rather than a compliance afterthought. Eighty‑four percent of leaders say data sovereignty and repatriation regulations have grown more important in the past year, while 86% say regulatory alignment of cloud providers is increasingly critical.
- Legacy networks are limiting next-generation AI. AI‑driven operations depend on uninterrupted, high‑quality data flows, yet many networks are aging. Twenty‑five percent of mission‑critical networks, storage and servers are at end‑of‑service, and 20% of leaders say networks are a primary barrier to scaling recent technology investments. Despite heavy investment, only 37% believe their network infrastructure is ready for future risks.
The findings, based on insights from 3,700 business and technology leaders across 21 countries, underscore a widening gap between where enterprises are investing and how prepared their core infrastructure is to manage emerging threats in a complex and increasingly regulated global environment.
For more insights, view the full 2025-2026 Security and Networks Snapshot.
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