6 steps state and local agencies can take to successfully migrate to hybrid cloud

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With hybrid cloud, state and local government agencies can launch services faster, collaborate more easily, cut redundant IT costs, and improve operational efficiency.

Despite these clear benefits, migrating to a hybrid cloud can still be complex and challenging at the state and local levels. As government technology leaders know firsthand, several practical and organizational concerns can slow overall progress and stall hybrid cloud migrations.

The Public Sector Cloud Adoption 2025 report found that 70% of public sector survey respondents feel at least “a little stuck” moving to the cloud.

The report explains that despite “immense benefits to public sector organizations,” agencies still “face a unique set of challenges in both moving to and deriving value from the cloud.”

So, how can state and local agencies overcome these obstacles when adopting a hybrid cloud environment? Let’s take a closer look.

Common implementation barriers and concerns

Most state and local agencies navigate similar challenges when transitioning to a hybrid cloud model. Concerns typically fall into five categories: security, funding, IT infrastructure, IT staffing, and leadership buy-in.

This often leads agencies grappling with questions such as:

• How can we protect our data across multiple environments?
• How can we secure funding for a technology initiative of this scale when budgets are set years in advance?
• How can we manage sensitive or legacy workloads that cannot be moved to the cloud, without adding financial strain?
• How can we recruit, retain, or develop qualified staff to oversee both legacy infrastructure and new hybrid cloud environments without adding operational strain?
• How can we present a compelling business case when leaders aren’t aligned on cloud priorities?

These questions are a natural part of due diligence — but you don’t need every answer to get started. Agencies across the country have advanced their hybrid cloud efforts by taking practical steps during planning and migration.

Use these six steps to keep your hybrid cloud migration on track

Specific steps taken early in the planning phase can increase your likelihood of success.

1) Build your foundation

Shift your organization’s mindset, design principles, and governance toward a cloud-aligned operating model.

Key actions: Build your value case, develop a workforce plan, and identify the cloud model that best fits your needs.

2) Get buy-in from leadership and stakeholders

Align leaders and key stakeholders early to build momentum for your hybrid cloud initiative.

Key actions: Identify what each stakeholder values, what they hope to gain, and where their concerns lie so you can connect hybrid cloud to their objectives.

3) Work with budget authorities on funding

Bring budget, finance, and procurement teams in early — they ultimately determine whether your initiative receives the long-term funding and support.

Key actions: Evaluate the most effective financial models, understand CapEx/OpEx shifts, and identify funding opportunities across multi-year budgeting cycles.

4) Create a cloud responsibility model and implement layered certification

Clarify governance, accountability, and compliance requirements to keep your hybrid environment secure, consistent, and aligned with agency standards.

Key actions: Map which responsibilities your agency owns versus those of the provider, and use layered certification practices to maintain compliance across cloud and on-prem systems.

5) Navigate essential cloud procurement steps

Address cloud-specific procurement requirements to avoid delays and ensure your agency acquires the right solutions.

Key actions: Understand cloud-specific terms, evaluate pilots, set provider criteria, and clarify legal, technical, and commercial requirements.

6) Choose the right technology partner

Select a provider who can support your technical, operational, and compliance needs throughout your hybrid cloud journey.

Key actions: Look for providers with proven expertise, the right capabilities, a sustainable support model, and alignment with your hybrid cloud goals.

How SHI can help your agency with its hybrid cloud migration

SHI has partnered with hundreds of state and local agencies to support successful migrations to cloud, hybrid cloud, and multi-cloud environments.

We can help you navigate key considerations, such as:

1) Workload placement and handling

Are there workloads that may require different handling or placement based on sensitivity, performance, or compliance needs?

SHI offers executive briefings and tailored engineering guidance to help you evaluate these requirements and establish sound placement strategies.

2) Funding and financial strategy

Is there an opportunity to rethink your financial approach for a hybrid cloud initiative — such as shifting from capital to operational expenses?

SHI collaborates with the Grants Office to provide complimentary funding analyses and customized grant reports to help agencies pursue public-sector funding opportunities.

3) Application modernization and architecture decisions

Could modernizing legacy systems or adopting new application architectures better align specific workloads to the right service or deployment models?

SHI provides multi-cloud services and a comprehensive Technical Assessment to help plan, modernize, and architect your cloud environment effectively.

The sooner you begin your hybrid cloud journey, the easier it becomes

When it comes to hybrid cloud migration, the key is getting started. Data from the same Public Sector Cloud Adoption 2025 report shows agencies actually become more optimistic the further along they are in their hybrid cloud journey.

It explains, “The single biggest determining factor of how optimistic and/or stuck respondents feel about moving into the cloud is how far along they are in their cloud journey — the farther along they go, the more optimistic they seem to feel, and the easier things seem to get.”

Hybrid cloud adoption is a major shift. But with the right steps, strategy, partners, and support, agencies can move forward confidently. Strengthening your foundation, aligning teams, securing funding, defining governance, navigating procurement, and selecting the right partners can build momentum and help you unlock the full value of hybrid cloud.

NEXT STEPS

Want tailored guidance on your current environment and a roadmap for moving to hybrid cloud? Speak with one of our cloud services experts today.