A Cloud Reality Check for Federal Agencies


The move to cloud is not slowing down – spending by Federal civilian agencies on cloud computing could reach $8.3 billion in Fiscal Year (FY) 2025. But despite years of guidance (from Cloud First to Cloud Smart) on how agencies should tackle that journey, cloud adoption remains an unfulfilled priority for the government.

In fact, the 17th Federal IT Acquisition Reform Act (FITARA) scorecard included a new cloud scoring category – which subsequently caused agency scores to decline. This isn’t necessarily a bad thing – the low scores highlight clear areas of improvement for Federal agencies. Despite guidance and a clear path forward, agencies are grappling to unlock cloud’s full potential.

The Right Road to Cloud

Cloud adoption is not a mere checkbox exercise, it is a strategic initiative that has the potential to offer scalability and efficiency improvements. To successfully adopt cloud technologies, agencies should start by conducting thorough cost-benefit analyses to understand the financial implications of different cloud adoption strategies and make informed decisions that fit their budgets and operational needs.

Unpredictable costs often limit agencies’ ability to secure essential funds for cloud infrastructure and services. While it’s inexpensive to move data into the cloud, it costs a lot to get the data out. The costs associated with cloud adoption – like access or egress fees – are difficult to model and while agencies can leverage the cloud for more availability when needed, they can’t always reduce that capacity. This leaves agencies paying for cloud capabilities they aren’t using. Further, traditional government budget cycles do not match the flexible, on-demand nature of cloud spending, posing expense management and cost-efficiency challenges.

To alleviate these concerns and manage costs, agencies should regularly review and optimize resource allocations. By establishing clear governance policies for cloud spending, like setting budget limits and defining approval processes, agencies can promote accountability and ensure smart spending department-wide.

When it comes to modernization, a phased approach is wise. It allows agencies to migrate workloads gradually and strategically, minimizing risks and disruptions. Prioritizing applications based on complexity and impact helps manage the migration smoothly. Hybrid cloud solutions are also beneficial, letting agencies blend their existing on-premises infrastructure with cloud resources at their own pace. This way, they maintain control over critical applications and data while embracing modern cloud capabilities effectively.

Aligning Cloud Adoption with Mission Objectives

It is crucial for agencies to take a mission-driven approach when pursuing cloud initiatives. This means clearly understanding how cloud technologies can directly contribute to achieving their core goals, improving service delivery, and enhancing overall operational efficiency. By developing a strategic plan that outlines specific outcomes, key milestones, and performance metrics, agencies can effectively map out their cloud journey to align with broader organizational objectives. This should be a dynamic document, regularly reviewed and updated to adapt to evolving priorities and new opportunities.

Involving stakeholders is equally essential. Engaging IT staff, business leaders, and end-users when developing the strategy ensures that all perspectives and needs are considered from the outset. This collaboration not only enhances the quality of decision-making but also fosters a sense of ownership and commitment to the cloud adoption strategy throughout the organization. By involving stakeholders early on, agencies can leverage their expertise to identify potential challenges, refine strategies, and maximize the benefits of cloud technologies in achieving mission success.

Tailored Cloud Adoption for Strategic Modernization

For Federal agencies to achieve successful cloud adoption, it requires a holistic approach tailored to their specific operational needs. Instead of opting for generic solutions, agencies should customize their cloud implementations to maximize the benefits of modern technology. This not only enhances operational efficiency but also supports mission objectives more effectively.

Prioritizing stringent security protocols is also crucial. Agencies must implement and continuously monitor these measures to safeguard sensitive data and comply with Federal regulations, reducing cloud adoption risks. Additionally, modernizing legacy systems requires strategic refactoring rather than a simple “lift and shift” approach. By refactoring applications to utilize cloud-native features fully, agencies not only enhance performance but also prepare for long-term scalability and innovation in the cloud.

By embracing these principles – holistic customization, robust security, and strategic modernization—Federal agencies can navigate the complexities of cloud adoption and realize the full benefits, like greater operational agility, cost-efficiency, and mission success.

About the Author

James Langley is the Master Solutions Consultant of Hitachi Vantara Federal, a wholly owned subsidiary of Hitachi Vantara, with more than 20 years of experience in the IT industry and a decade as a trusted adviser for federal civilian, defense and intelligence agencies. James can be reached at [email protected] or at our company website www.hitachivantarafederal.com/



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