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Mandala’s analysis shows accelerating cloud and AI could save billions in government management, cut downtime and reduce emissions while freeing staff for higher‑value work. How do government cloud adoption benefits translate into tangible savings? Why does cloud matter for governments? Because it reduces waste and centralises capacity, yielding direct financial benefits. Mandala’s report finds that retiring legacy IT and accelerating cloud adoption by five years could yield an annual saving of $1.4 billion, equivalent to a 13% reduction in total IT costs. In fact, the study projects cumulative savings of $3.4 billion by 2030 and $13.5 billion over the next decade. $10 billion from infrastructure and software consolidation $2.1 billion from lower external IT labour costs $1.3 billion from increased productivity of internal IT staff Today, roughly 10% of government IT spending is on public cloud — indicating major headroom Therefore, even moderate acceleration unlocks large fiscal returns. Moreover, agencies could reduce IT budgets by up to 28% over the decade depending on size and function. In short, cloud is both a cost and capability lever. Which public sector IT modernization steps deliver the biggest returns? Modernisation is not only lift‑and‑shift. It includes refactoring legacy systems, redesigning processes and updating governance. Mandala shows that infrastructure and software consolidation deliver the largest share of savings. For example, avoiding 2.9 million hours of IT downtime is estimated to save about $82 million in lost productivity over the next decade. Consequently, agencies that pair migration with process change capture more value. In practice, this means combining technical migration, change management and measurable KPIs. Which procurement for cloud migration reforms remove the biggest barriers? Procurement often stalls projects. Traditional capital‑style contracts and rigid specifications disincentivise subscription models. Therefore, reforming procurement toward multi‑year operational budgets and outcome‑based contracts is essential. Moreover, a practical example comes…

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Filed under: News - @ October 8, 2025 1:25 pm