The Great Tech Reset: Architecting for AI Value with Hybrid by Design

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As generative AI redefines how businesses operate, the infrastructure supporting it is under scrutiny. IBM’s “The Great Tech Reset” challenges enterprises to rethink their fragmented, hybrid-by-default environments and replace them with hybrid-by-design models—deliberate, integrated systems built for performance, scalability, and long-term value. This report distills IBM’s findings and explores why architecture has become the deciding factor in whether AI creates lift—or stalls.

A Systemic Shift in Enterprise Architecture

The report distinguishes between hybrid-by-default architectures—unplanned, fragmented, expensive—and hybrid-by-design frameworks, which are structured, integrated, and business-aligned. IBM’s analysis reveals a stark divide: organizations taking a hybrid-by-design approach generate over 3x ROI over five years and are far more prepared to scale gen AI initiatives.

Most enterprises still fall into the default category, carrying layers of tech debt and siloed systems that stifle transformation. Yet the shift is accelerating. Delta, Argentina’s Ministry of Health, and IBM itself showcase how hybrid-by-design strategies are already delivering real-world gains—from faster service launches to billions in productivity unlocks.

Key Findings From the Report

• 72% of executives say improving ROI on tech investments by 25%+ is a top priority

• Hybrid-by-design organizations generate 3x higher ROI over five years compared to peers

• Only 23% of IT budgets are allocated to revenue-driving initiatives—most are tied up in maintenance and SG&A

• Just 16% of executives are confident their infrastructure is ready for scaled generative AI

• 71% of cloud IT assets are underperforming or not meeting requirements

• IBM projects $3B in productivity gains through its own hybrid-by-design transformation

• 55% of companies cite tech debt as a major obstacle to digital transformation

• Only 12% of tech initiatives originate from business units—highlighting ongoing IT-business misalignment

• 70% of leaders say their tech architecture causes confusion or disagreement across teams

• Delta, Argentina’s Ministry of Health, and IBM show measurable performance gains from hybrid-by-design execution

The Industry Imperative: Rethink Value, Not Just Infrastructure

IBM urges leaders to stop treating IT as a cost center. In today’s environment, digital transformation success isn’t about deploying more tools—it’s about deploying the right architectural models. Yet only 23% of the average tech budget goes toward projects that directly generate income. Hybrid-by-design thinking flips this, emphasizing intentional investment, business-outcome alignment, and a shift from reactive to strategic technology planning.

CXF Take

IBM’s report is a sharp diagnostic of where most enterprises fall short: they confuse cloud adoption with architecture. The reality is that without intentional design, tech stacks become liabilities. Hybrid by design corrects that. It forces alignment between infrastructure and outcomes, enabling scale, speed, and adaptability.

The most forward-looking organizations aren’t just deploying AI—they’re rearchitecting around it. That’s the shift. Hybrid by design is no longer a technology decision. It’s a business imperative for any company expecting to compete in the next decade.