SAN FRANCISCO—Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, has released its inaugural 2026 App Innovation Report, revealing a growing challenge threatening the future of AI adoption and cybersecurity across enterprises. The findings highlight a critical barrier known as the “technical glass ceiling”—a state where outdated infrastructure and accumulated technical debt prevent organizations from fully leveraging modern technologies. The report shows a clear divergence between companies that have embraced application modernization—upgrading legacy systems and adopting cloud-native architectures—and those still reliant on aging tech stacks. Organizations that have modernized their application environments are not only better positioned to integrate AI tools effectively but also maintain stronger cybersecurity postures. In contrast, companies burdened by technical debt face escalating operational costs, slower innovation cycles, and increased vulnerability to cyber threats. According to the report, businesses with modern infrastructures are 58% more likely to successfully deploy AI-driven applications at scale. These organizations benefit from improved agility, faster deployment times, and seamless integration with AI platforms. Conversely, legacy systems often lack the scalability, flexibility, and security protocols needed to support advanced AI workloads, creating bottlenecks that hinder progress. Cybersecurity is another major concern. The report reveals that companies with outdated systems experience 73% more security incidents annually compared to those with modernized architectures. Legacy environments frequently rely on patchwork fixes and manual processes, making them harder to monitor and protect. In contrast, cloud-native systems with automated security controls and real-time threat detection significantly reduce risk exposure. Cloudflare’s analysis also points to a growing talent gap. Engineers in modernized environments report higher job satisfaction and retention rates, while teams in legacy-heavy organizations struggle with burnout and skill stagnation due to constant firefighting and inefficient workflows. The report concludes that overcoming the technical glass ceiling is no longer optional—it’s essential for long-term competitiveness. Organizations must prioritize modernization not just for performance and security, but as a foundational requirement for unlocking AI innovation and building resilient digital operations. Cloudflare’s findings underscore a pivotal truth: the future of technology isn’t just about adopting new tools—it’s about building the right foundation to support them.