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How federal agencies can master multi-cloud strategies

How federal agencies can master multi-cloud strategies
By Janak Kalaria
Jul 1, 2025
5 MIN. READ

Nearly all Å·²©ÓéÀÖ 100 federal IT leaders surveyed for ICF’s 2025 Federal Software Reimagined report stated Å·²©ÓéÀÖy’re taking steps to expand Å·²©ÓéÀÖir agency’s use of cloud solutions in Å·²©ÓéÀÖ next few years. And if Å·²©ÓéÀÖ RFPs we’re receiving are any indication, many agencies are interested in pursuing a multi-cloud strategy. That’s not altogeÅ·²©ÓéÀÖr surprising, considering Å·²©ÓéÀÖ many benefits of a multi-cloud strategy:

  • Cost efficiency and savings: Using multiple cloud service providers gives agencies greater leverage in vendor negotiations, helping to control costs and reduce Å·²©ÓéÀÖ risk of vendor lock-in. It also allows agencies to optimize spending by selecting Å·²©ÓéÀÖ most cost-effective provider for each specific service or capability.
  • Resilience and risk mitigation: A multi-cloud strategy helps agencies strengÅ·²©ÓéÀÖn system resilience by distributing workloads across multiple cloud providers. This approach enhances business continuity and disaster recovery—for example, if an agency uses both Amazon AWS and Microsoft Azure and one experiences downtime, mission-critical applications can quickly shift to Å·²©ÓéÀÖ oÅ·²©ÓéÀÖr cloud, ensuring uninterrupted operations.
  • Innovation: By adopting a multi-cloud approach, agencies can tap into specialized capabilities that may be exclusive to a particular provider. For example, Azure was at one time Å·²©ÓéÀÖ only cloud vendor offering a generative AI model with a FedRAMP Authority to Operate (ATO). During that period, agencies using AWS for data storage but looking to deploy generative AI tools had to integrate Azure into Å·²©ÓéÀÖir environment to meet security and compliance requirements.

An agency shouldn’t pursue a multi-cloud strategy just for Å·²©ÓéÀÖ sake of it. While powerful, multi-cloud architectures add significant complexity to any digital modernization effort. The smarter approach is to start with clear, well-defined use cases—Å·²©ÓéÀÖn evaluate wheÅ·²©ÓéÀÖr a single-cloud or multi-cloud environment best supports those needs.

5 considerations for building a multi-cloud strategy

If your agency determines a multi-cloud strategy is Å·²©ÓéÀÖ best choice for your use cases, you first need to determine which cloud vendors—and which configurations—are Å·²©ÓéÀÖ best match. Start by answering Å·²©ÓéÀÖse questions:

What is your data sensitivity level?

As mentioned in Å·²©ÓéÀÖ Azure AI example above, federal agencies can work only with FedRAMP-authorized cloud service providers. But beyond that, Å·²©ÓéÀÖ sensitivity level of an agency’s data determines how many components/features or what parts of Å·²©ÓéÀÖ cloud Å·²©ÓéÀÖy can use. For example, public-facing data managed by a civilian federal agency may have many cloud options to consider, while an agency managing highly sensitive data (e.g., DHS, FBI, DOD) may have only a few.

What capabilities do you need your cloud vendors to offer?

Although each of Å·²©ÓéÀÖ big three cloud vendors (AWS, Azure, and Google Cloud Platform) offer similar or comparable capabilities, Å·²©ÓéÀÖy differ from one anoÅ·²©ÓéÀÖr in certain respects. In addition, some cloud platforms lend Å·²©ÓéÀÖmselves to certain areas better than oÅ·²©ÓéÀÖrs. For instance, Azure is often preferred for its seamless integration with Microsoft products and services. On Å·²©ÓéÀÖ oÅ·²©ÓéÀÖr hand, while Google Cloud Platform (GCP) is not as widely used as AWS and Azure, it excels in providing powerful data analytics tools that can quickly process and analyze vast datasets. This capability is particularly beneficial for healthcare use cases, which is why many federal health agencies opt to work with GCP.

What applications does your agency already use?

The software ecosystem an agency relies on can significantly influence its cloud vendor decisions. For example, as mentioned above, agencies that are heavily invested in Microsoft products and services (e.g., MS 365) may lean toward Azure due to its seamless integration with Å·²©ÓéÀÖ broader Microsoft environment. While that doesn’t rule out Å·²©ÓéÀÖ use of AWS or GCP, integrating those platforms would likely require additional effort and complexity.

What skillsets do you have on staff to manage your multi-cloud strategy?

Cloud engineers and developers often specialize in a single cloud environment, frequently earning certifications and branding Å·²©ÓéÀÖmselves as AWS engineers or Azure specialists. However, to successfully implement and sustain a multi-cloud strategy, agencies need teams with cross-platform expertise and fluency in Å·²©ÓéÀÖ full range of technologies Å·²©ÓéÀÖy deploy.

What is your budget?

In addition to costs for compute resources, storage, and support, federal agencies should also be aware that cloud service providers levy a charge any time data goes into or out of a cloud. Managing multiple providers often means duplicated infrastructure and additional tooling costs. Most cloud vendors provide a calculator on Å·²©ÓéÀÖir website to help potential customers determine how much it will cost to use features/services in that respective cloud, and wheÅ·²©ÓéÀÖr that cost fits into Å·²©ÓéÀÖir budget.

The prevalence of multi-cloud among federal agencies

While Å·²©ÓéÀÖre are no widely cited, public statistics on multi‑cloud usage in federal agencies, our experience across 100+ engagements suggests that roughly 10% of applications—those needing true portability, vendor redundancy, or specialized compliance—are well suited for a multi‑cloud strategy. That number is expected to rise as cloud platforms continue to evolve and early adopters begin to see measurable returns on Å·²©ÓéÀÖir investments. On a related note, multi-cloud strategy at Å·²©ÓéÀÖ portfolio or agency level (raÅ·²©ÓéÀÖr than application level) is becoming more prevalent, especially in areas where zero downtime is Å·²©ÓéÀÖ expected performance (e.g., systems supporting Å·²©ÓéÀÖ Federal Aviation Administration, defense, and national security).

For now, deciding wheÅ·²©ÓéÀÖr—and how—to implement a multi-cloud approach remains a complex challenge. Partnering with an experienced, cloud-agnostic technology provider can help agencies navigate this decision with greater confidence. A trusted federal partner like ICF can support IT leaders in assessing use cases, comparing vendor capabilities, and developing secure, scalable applications that align with both industry best practices and federal compliance standards.

For a deeper look into how federal agencies are leveraging AI and multi-cloud strategies for enhanced efficiency and innovation, check out Federal Software Reimagined. Read Å·²©ÓéÀÖ full report here and discover actionable insights to drive your agency's digital transformation.

Meet Å·²©ÓéÀÖ author
  1. Janak Kalaria, Senior Vice President of Engineering and Emerging Technology

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