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Cloudflare, Inc., a leading connectivity cloud company, has published its inaugural 2026 App Innovation Report. The findings reveal a growing divide: organizations modernizing their applications—updating tech stacks to move away from legacy systems—are significantly better positioned to achieve AI success and maintain strong cybersecurity. Those clinging to outdated infrastructure face a “technical glass ceiling” that stifles AI innovation, increases cyber risks, and drives developer talent shortages.
The report highlights that application modernization is no longer an optional IT objective—it is essential for competitive advantage in the AI era. Organizations delaying updates are not simply standing still; they are falling behind as competitors accelerate. Legacy systems trap companies in high-maintenance cycles, consume IT budgets on upkeep rather than innovation, and expose them to heightened cyber threats.
“In order to succeed with AI, having a modern and secure foundation is non-negotiable,” said Matthew Prince, CEO and co-founder of Cloudflare. “This report made clear that organizations who prioritize modernization are able to innovate at speed and scale, while those who don’t are likely to become a threat actor’s next target. If you aren't modernizing your business to embrace AI and prevent the next wave of cyberattacks, you aren't just standing still, you’re rapidly falling behind. The winners of this era of the Internet will ultimately be defined by their infrastructure.”
Security is not merely a defensive measure—it accelerates growth. Companies aligning security with modernization efforts achieve higher AI maturity and greater confidence in their infrastructure. In contrast, reactive modernization—often triggered only after a breach—creates persistent vulnerabilities and limits strategic agility.
The report also underscores the burden of tech stack complexity. Nearly all organizations (96%) face challenges from sprawling, fragmented tools, while leading organizations actively simplify by reducing redundant solutions and shadow IT. This consolidation enables faster execution and better resource allocation toward AI-driven innovation.
In partnership with Qualtrics, Cloudflare surveyed 2,351 organizational leaders (director level and above) in IT, security, product, and engineering roles across NAMER, EMEA, and APAC. Respondents work in organizations with 1,000+ employees and have influence over IT infrastructure or vendor decisions. The survey was conducted from June 13 to July 21, 2025.
To access the full 2026 Cloudflare App Innovation Report and related resources, including infographics and Cloudflare TV series content, visit the official report page.
About Cloudflare
Cloudflare, Inc. is the leading connectivity cloud company. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business. Powered by one of the world’s largest and most interconnected networks, Cloudflare blocks billions of threats online for its customers every day. It is trusted by millions of organizations – from the largest brands to entrepreneurs and small businesses to nonprofits, humanitarian groups, and governments across the globe.
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