Technology

Annual Survey of Enterprise Technology Leaders Reveals Pressure to Deliver CX Improvements Quickly Drives Shift to Best-in-Class Architectures

Annual Survey of Enterprise Technology Leaders Reveals Pressure to Deliver CX Improvements Quickly Drives Shift to Best-in-Class Architectures

SAN FRANCISCO and NEW YORK and LONDON and AMSTERDAM and BERLIN, March 8, 2022 /PRNewswire/ — A new report released today by MACH Alliancea group of independent technology companies dedicated to promoting open and cutting-edge technology ecosystems, shows that while intentions to move to MACH architectures are high and progress has been made, companies are dissatisfied with their ability to deliver a customer experience (CX) speed improvements.

The 2022 “Enterprise MACHified” study, conducted by Mel Research and commissioned by the MACH Alliance, surveyed senior technology decision makers (CIO/CTO, VP/SVP, Senior Manager) in the US, UK and Germany.

MACH technology, which stands for Microservices, API-first, Cloud-native SaaS, Headless, currently accounts for less than half of front- and back-office architectures, with the largest companies being the most advanced. However, over the past year, data shows a 19% increase in the number of companies moving from a monolithic stack to best-in-class. Only 17% are leaning more towards integrated architectures this year, compared to 37% in 2021. Forty-seven percent aspire to be completely the best, compared to 36% last year.

The rate of adoption of MACH technologies in the United States compared to Europe is interesting. While US tech leaders claim to be as bold in their approach as their European counterparts, MACH is more prevalent in the UK front office (53%) and Germany (60%) than in the United States (34%). This despite 59% of US technology leaders citing a strong intention to increase MACH elements in the last 12 months in the Survey 2021.

What is clear is that the drivers of the MACH transition are pull, not push. Release cycle issues and onsite costs rank lowest among engines. Instead, speed, privacy, and constantly improving customer experience needs take priority. We can also see that MACH intentions are strongly correlated with competitor overtaking perceptions. Those with the strongest intention to increase MACH items over the next 12 months are the most likely to say they are significantly ahead.

The burden of upgrading prevents companies from innovating
Not much has changed in the last 12 months when it comes to the time and budget spent on upgrades. On average, organizations spend two-fifths (37%) of their IT budget on upgrades (2021: 39%). Those with the strongest intentions to increase MACH items over the next year are more likely to spend more than 75% of their IT budget on upgrades. With more than half of decision makers wanting fully cloud-based infrastructures in the future (53%), upgrade costs are expected to decrease over time, but the data does not yet reflect intentions.

Upgrades continue to prevent IT teams from innovating, with almost no change year over year. Two-fifths of respondents perform maintenance or upgrades every three weeks, and almost three-quarters of them take more than a month, with 25% taking more than three months. On average, IT teams spend 39% of their time delivering upgrades, with 28% saying that more than half of their IT team’s time is spent on it. That’s a huge chunk of time that could be spent on innovating and improving the customer experience.

Implementation versus ideology
The majority of decision makers see MACH as the future of architecture, stating that they want environments that use cloud-native, composable, and best-of-breed technologies moving forward. Seventy-nine percent expressed a strong intention to increase MACH elements in their architecture in the future (both within and beyond the next 12 months). Twenty-seven percent over the next 12 months.

“The MACH architecture has countless advantages when it comes to delivering new features and functionality to customers faster,” said Dylan Valade, head of global e-commerce technology at PUMA. “I have long championed the freedom of a flexible and composable architecture for enterprises. It is only through modern software architectures that we can scale our business models and offerings at the speed customers demand today. “

Asked about the top barriers to moving to a MACH-based architecture, a third of decision makers said they were unclear about the trade-off between initial investment and long-term benefits. Two-fifths said their IT/implementation team’s resistance to change is their biggest barrier.

“It’s clear that the majority of IT and business leaders understand the benefits of MACH-based architectures, but data and our experience show that fear of change and the practicalities of implementation hold them back,” the president said. of MACH Alliance, Sonja Kerl. “It is also clear that as the MACH movement grows in the United States, Europe is clearly ahead. With IT budgets set to grow faster this year than they have in a decade, IT leaders should prioritize investments in technologies that will future-proof and digitally advance their business as the business environment remains uncertain. »

Visit our website for the full report.

About the MACH Alliance

The MACH Alliance is a [501(c)(6)] not-for-profit organization, governed by an independent board of directors and does not endorse specific vendors, members or others. The Alliance was created in June 2020 to help businesses navigate the complex landscape of modern technologies. It aims to guide and show the business advantage of microservices-based, API-first, cloud-native, and headless open technology ecosystems. All members of the MACH Alliance comply with the certification principles published on the website.

The MACH Alliance welcomes technology companies and individual industry experts who share the same vision for the future. Learn more about MACH Certificate here and follow us on Twitter and LinkedIn.

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SOURCE MACH ALLIANCE, Inc.