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Sep 25 2024
Cloud

State Governments Pivot to Cloud Modernization After Slow Adoption

A majority of agencies now must plan for multicloud development.

As recently as five years ago, state governments were still seen as slow adopters of cloud resources. But today, a supermajority of state government agencies have adopted cloud solutions. We’ve seen the cloud adoption conversation go from cloud-first to cloud-smart and now to cloud modernization.

During last year’s annual meeting of the National Association of State Chief Information Officers, the association released a report, Capitals in the Cloud Part II: Changing the Cloud Conversation.

Around the discussion of that report, CIOs agreed many state government agencies were overdue to examine cloud modernization versus cloud migration. States had multiple cloud instances built up over time, and multicloud administration had become a priority.

“When it comes to getting to the cloud, hybrid and multicloud environments are the new normal,” the NASCIO report states. That requires state CIOs to adapt and rethink their strategies and methods for IT governance.

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The Risks of Delaying Cloud Modernization

More leaders are doing business in the cloud to mitigate the risks associated with aging legacy systems, according to NASCIO’s report.

Shortly before the report’s release, MeriTalk conducted a study that found that 96% of IT decision-makers believe “critical infrastructures are at risk due to legacy applications.” Nearly half had seen a digital services project fail because a legacy system could not support it.

Legacy systems also typically lack transparency, making it hard to judge security risks, Amazon Web Services warns. Modern cloud solutions, which are designed for interoperability, also benefit from cloud-based threat detection, network monitoring, security automation and other functions that maintain visibility into cloud operations.

In an assessment of federal agencies, the Government Accountability Office found that reliance on legacy systems has other underlying risks, including rising costs and a lack of skilled workers to operate those systems. While the GAO’s observations were limited to the federal government, state and local governments face the same risks.

90%

The percentage of global IT professionals who said AI is a primary driver of cloud modernization

Source: Rackspace Technology, The 2023 Cloud Modernization Research Report, June 2023

The Motivators for Cloud Optimization

Cloud technology empowers state governments to adapt to constituent needs and increase resiliency, NASCIO notes.

The top state functions adopting cloud services, according to NASCIO, are health services (58%), human services (51%), employment services (40%), transportation (33%) and licensing and permits (28%).

As governments adopt cloud to fulfill citizen demands, they may find themselves in a multicloud environment as they acquire resources to meet various needs. This may require a holistic review of cloud assets and perhaps a move to streamline cloud management.

RELATED: State and local governments must prioritize cloud optimization.

As they consume more cloud resources, governments see greater operating expenditures for purchases of compute, storage and associated services, instead of making upfront capital purchases and one-off acquisitions for on-premises infrastructure. Operating expenditures open the door to government agencies pooling their collective requirements and scaling resources for multiple missions. By contrast, capital expenditures offer less adaptability to real-time circumstances.

Getting on an Even Footing for the Future

Of course, a strong cloud posture also positions agencies to take advantage of emerging technologies. As we have heard from state CIOs across multiple NASCIO panels in recent years, many state executives are eager to incorporate artificial intelligence into their operations where it makes sense to do so.

As AWS says, “Cloud modernization will be key for integrating AI-driven solutions that automate business processes and streamline data collection and analysis, allowing agencies to reduce manual work, reallocate their resources to higher-value tasks and minimize IT burdens.”

DISCOVER: How AI and platform engineering enhance each other.

In a 2023 survey by Rackspace Technology, 90% of global IT professionals said AI is a primary driver of cloud modernization. But cloud modernization is good for mature and immature institutions alike.

“Every organization can benefit from cloud modernization, no matter which stage of the cloud journey they’re in,” Rackspace notes. “Cloud modernization is more than just a migration to the cloud; it’s the process of optimizing costs, modernizing applications and security, and, when necessary, cloud native application replatforming. Cloud modernization promotes efficiency, security and cost reduction.”

Application modernization alone may produce improvements in accessibility, scalability and reliability, satisfying people who depend on government services.

This article is part of StateTech’s CITizen blog series.

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