Why Government Agencies are Moving to the Cloud Faster Than You Think

Government agencies are under growing pressure to modernize. Aging infrastructure, budget constraints, and rising expectations from citizens make it harder to deliver essential services efficiently.

Cloud technology offers a path forward. It improves system availability, collaboration (across departments and agencies), and online experiences for the public. For many agencies, however, the transition to the cloud hasn’t been easy.

To better understand why, CentralSquare partnered with AWS to survey 250 public sector professionals across the country. These leaders – all responsible for technology decisions in their agencies – shared where they’re making progress and where they feel stuck.

What we found was a mix of optimism and hesitation. Most agencies recognize the benefits of moving to the cloud, but key challenges like budget, security, and compliance are slowing adoption.

In this article, we’ll explore the public sector momentum behind cloud migration, the barriers holding some agencies back and what’s at stake for those who delay. Ready or not, the shift to the cloud is happening, and it’s moving faster than you might think.

The Cloud Surge in Government

Thanks to its numerous benefits, public agencies across the US and Canada are shifting to cloud technology, and there are many paths to get there. According to Forrester’s 2024 Cloud Survey, 80% of public sector decision-makers use a hybrid cloud approach, and 71% use multiple public clouds to meet their needs.

What’s changing is the pace and scope. Agencies aren’t just adopting cloud systems for new applications; they’re migrating existing workloads to the cloud as well.

In fact, 27% of decision-makers say that moving current systems to the cloud is their top priority for the next 12 months. Examples include Utah’s Office of Recovery Services, British Columbia’s Health Services Authority, and FEMA – all of which have migrated significant operations to the public cloud.

The public sector isn’t just catching up, it’s moving forward fast, and for good reason. The benefits of the cloud are too significant to ignore.

Top Benefits Driving the Shift

As government agencies transition to the cloud, they are discovering clear and measurable benefits that go far beyond modernization. One of the most cited advantages is resilience and availability. In fact, 64% of agencies point to improved disaster recovery and consistent uptime as major reasons to make the switch. This is especially critical for public safety agencies and departments that can’t afford downtime.

Cost efficiency is another driver. It eliminates the need for costly hardware upgrades, reduces IT maintenance, and lowers total cost of ownership over time. Agencies can also scale services as needed and pay only for what they use, freeing up both budget and staff resources.

The cloud also delivers superior security. According to the Forrester Report, The State of Cloud in Government in 2025, 34% of public agencies adopt cloud solutions for “improved security.” With built-in 24/7 monitoring, automatic updates and compliance (NIST, CJIS, HIPAA, etc.), the cloud keeps data safe without the manual lift.

Agencies also benefit from scalability and flexibility, gaining the ability to respond quickly to evolving needs without massive infrastructure overhauls. Whether it’s adjusting capacity during emergencies or rolling out new services, the cloud adapts in real time.

Finally, the cloud improves the citizen experience. With faster, more reliable services and user-friendly access, agencies can provide better transparency and responsiveness to their communities. Cloud technology isn’t just a tech upgrade, it’s a smarter way to serve.

“We are a smaller county with limited resources, so removing the hassle of server refreshes by moving to the cloud while saving money on equipment purchases helps us better focus on our core mission of keeping the community safe.”

Taylor Ray, 911 Director for Edgar County

What’s Holding Some Agencies Back

While cloud adoption in the public sector is accelerating, many government agencies still face real and perceived barriers that slow their transition. Budget remains a primary concern, especially for those with tight constraints (so, most agencies). The misconception that cloud migration requires large upfront investments often overshadows its long-term cost savings.

Compliance is another key challenge. Many agencies and departments must navigate complex regulatory requirements like NIST, CJIS or HIPAA. As we discovered in the previous section, however, cloud solutions meet these standards.

Legacy systems present another hurdle. Many organizations worry about losing control over infrastructure they’ve spent years customizing. According to Forrester’s 2024 Cloud Survey, 27% of public sector decision-makers are concerned about difficult network connectivity or architecture, another 27% worry about lack of internal governance, and 25% fear paying for features they don’t need.

Staffing adds to the challenge. Administrators and IT specialists are often stretched thin, making it difficult to plan and manage a cloud transition while maintaining day-to-day operations.

Despite these concerns, they are not roadblocks. Early adopters have proven these issues can be solved. The farther along agencies get in their cloud journey, the more confident and optimistic they become. In fact, 41% of organizations say they’ve moved past initial barriers like cost and reliability. They’re no longer stuck, and they’re showing what’s possible with the cloud.

“Moving to the cloud significantly reduces management overhead. Now, we can bring flexibility to our operations and improve our short-and long-term budget planning.”

Tyler Hill, Project Development Specialist for Boone County

The Risk of Waiting

Waiting to move to the cloud comes with real consequences. Staying on-premises means holding onto outdated infrastructure that’s costly to maintain and difficult to scale. Agencies that delay face rising IT overhead, frequent hardware refreshes and increased risk from cyber threats that evolve faster than on-prem systems can be updated to defend against.

There’s also the risk of falling behind. Agencies that move to the cloud are streamlining operations, scaling services more efficiently and using real-time data to drive better decisions. Those who wait are missing opportunities to innovate and to meet the rising expectations of residents and staff alike.

As peers advance, late-adopters struggle to keep up – not just in performance, but in perception. Falling behind can erode public trust and make your agency less attractive to top talent in the job market. The longer you wait, the more costly catching up becomes.

How to Get Started

Getting started with cloud migration doesn’t have to be overwhelming. The best approach is to start small. Identify a single system or workflow that would benefit from increased accessibility, automation or resilience. From there, partner with a trusted vendor and begin the migration process. Learn from neighboring agencies who are already using the cloud and seeing measurable improvements.

Cloud adoption is accelerating across the public sector, and agencies that act now are gaining a meaningful advantage. CentralSquare is your trusted partner on this journey. We’ll help you overcome common challenges with a migration process that’s simple, cost-effective and secure. Schedule a discovery call today to learn how one of our cloud-based solutions can help your agency.