RESEARCH REPORT
Unlocking Cloud Efficiency for Smarter Government

Government organisations are under pressure to modernise services while managing tightening budgets and rising technical debt. Our new research, produced with IBM, reveals how cloud inefficiencies, legacy drag and underused AI capabilities are slowing progress, and what departments can do to unlock meaningful savings.
Key findings of the research, conducted with more than 100 UK public sector digital leaders, include:
- Legacy costs are draining budgets: Departments spend 10–50% of tech budgets on legacy systems, limiting investment in integration and improvement.
- Cloud performance is up, but savings are limited: Cloud delivers faster delivery (51%) and better resilience (42%), but only 33% report real cost savings.
- AI is underused for cost efficiency: While 67% use AI/automation, only 19% apply it to optimise cloud usage - a major missed opportunity.
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