For all the hype around the push for cloud computing and data-driven strategies, many large and mid-sized companies are still struggling to make the transition to new digital tools.

According to a new study from IBM, 60% of 310 CIOs and CTOs in the U.S. and U.K. contacted said their “IT modernization program is not yet ready for the future.” Worse, almost 1 in 4 said their company has just begun modernizing their IT infrastructure.

The numbers point to the immense challenges that enterprises still face in conceiving and selling internal strategies around digital transformation. For those companies that lag behind, they risk watching more nimble competitors or upstarts race past them.

Of course, for companies like IBM that sell infrastructure and services designed to boost such digital makeovers, the numbers point to the immense opportunity to help many companies achieve the most basic advances.

In this case, the study said 95% of these same IT leaders said they want to adopt some kind of cloud strategy. Across the board, they cited the desire to leverage such tools as AI, automation, and data as motivations for overhauling their IT. Among the benefits, a majority said such cloud-based strategies would help them be more competitive, save money, and increase their global reach.

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