Hybrid and multicloud describes an IT setup that combines private infrastructure (like a company’s own servers) with services from one or more external cloud providers, allowing workloads and data to move between environments as needed. For investors, it signals how a business can balance cost, flexibility and risk—like using both a personal car and ride-share services to save money, handle peak needs, and avoid relying on a single supplier—affecting competitiveness and future spending patterns.
sovereign cloudtechnical
A sovereign cloud is a cloud computing setup designed to keep data, systems and control within a specific country or legal jurisdiction so that local laws on privacy, security and government access are met. Think of it like storing valuables in a bank branch inside your own country with locked access and national oversight. For investors, it matters because demand, costs, regulatory approval and competitive advantage can be very different for services that meet these local rules.
FedRAMPregulatory
FedRAMP (Federal Risk and Authorization Management Program) is a U.S. government initiative that sets security standards for cloud computing services used by federal agencies. It ensures that these online platforms protect sensitive information, similar to how a security system safeguards a building. For investors, FedRAMP indicates that a cloud service meets strict security requirements, which can influence its reliability and trustworthiness in handling data.
NISTregulatory
National Institute of Standards and Technology (NIST) is a U.S. government agency that creates technical standards, testing methods and best-practice guidance for measurements, technology and cybersecurity. For investors, NIST guidance matters because companies that comply can lower operational and regulatory risk, speed product validation, and build customer and partner trust—similar to using a trusted blueprint that makes a product safer and easier to sell.
HIPAAregulatory
A U.S. law that sets rules for keeping individuals’ health information private and secure, and for how that information can be shared. Think of it as a mandatory lock-and-key system for medical records that hospitals, insurers, and tech vendors must use. Investors care because failing to follow these rules can lead to big fines, costly remediation, loss of business access to patient data, and reputational damage that can hurt a company’s finances and growth prospects.
generative AItechnical
Generative AI is a type of computer technology that can create new content, like text, images, or music, on its own. It’s important because it can produce realistic and useful material quickly, which could change how we create art, write stories, or even develop new products. Think of it as a smart robot that can invent and produce things almost like a human.
edge computingtechnical
Edge computing is a technology that processes data close to where it is generated, such as sensors or devices, rather than sending it all to a distant central location. This allows for faster decision-making and reduces delays, much like having a local office handle urgent matters instead of waiting for instructions from a main headquarters. For investors, it signifies improved efficiency and real-time insights, which can enhance the performance of technology-dependent industries.
Agencies increase cloud adoption to improve citizen experience and build more resilient, efficient digital operations, ISG Provider Lens® report says
STAMFORD, Conn.--(BUSINESS WIRE)--
State, local and education (SLED) agencies in the U.S. are expanding their use of hybrid and multicloud services to modernize operations while meeting strict compliance, security and data sovereignty requirements, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens® Multi Public Cloud Services report for the U.S. Public Sector finds that cloud computing has become foundational to government modernization efforts to build resilient infrastructure, compliant data platforms and scalable digital services. SLED organizations are adopting hybrid and multicloud models as they implement AI and machine learning tools for improved services to citizens. Harmonization of regulations and security practices across states and agencies has made it easier for providers to offer common service portfolios and for agencies to maintain compliance.
“Public agencies in the U.S. are moving with a sense of urgency to public cloud environments, often with AI, to improve the experiences of constituents who engage with them,” said Nathan Frey, ISG partner and lead, U.S. Public Sector. “Hybrid and multicloud services help them take these strides while ensuring service resilience and data protection.”
SLED organizations are turning to sovereign cloud regions offered by major cloud providers to address data residency and regulatory obligations, the report says. These environments allow agencies to meet evolving data privacy laws while moving critical workloads out of aging on-premises systems. Cloud environments can also improve service continuity during emergencies, including natural disasters and infrastructure failures, to keep essential public services available.
Standardized security frameworks are accelerating cloud adoption across jurisdictions, ISG says. The emergence of StateRAMP, modeled on the federal FedRAMP program, has reduced the number of duplicated security assessments and lowered technical debt for both agencies and providers. SLED organizations are also aligning security practices with NIST, FedRAMP and HIPAA standards to build on existing certifications rather than starting from scratch. This approach streamlines procurement and shortens timelines for deploying secure cloud solutions.
SLED organizations are stepping up their use of generative AI to improve efficiency and constituent services, the report says. They are using AI tools for applications including automated citizen engagement, grants management and intelligent document processing. Agencies are also applying real-time analytics in healthcare and public safety settings to process data faster while maintaining accountability and oversight.
“The U.S. public sector is advancing AI efforts carefully but steadily, with a clear focus on responsible use,” said Shashank Rajmane, principal analyst, ISG Provider Lens Research, and lead author of the report. “Cloud platforms empower them to modernize service delivery without sacrificing governance.”
The report also explores other trends shaping public cloud adoption in the U.S. public sector, including the growing use of federated cloud models to support multijurisdictional operations and rising demand for edge computing in public safety and disaster preparedness initiatives.
For more insights into the cloud-related challenges facing U.S. public sector organizations, plus ISG’s advice for addressing them, see the ISG Provider Lens® Focal Points briefing here.
The 2025 ISG Provider Lens® Multi Public Cloud Services report for the U.S. Public Sector evaluates the capabilities of 34 providers across four quadrants: Consulting and Transformation Services, Managed Services with Integrated FinOps, Hyperscale Infrastructure and Platform Services and SAP HANA Infrastructure Services.
The report names IBM as a Leader in four quadrants. It names Accenture, AWS, CGI, Deloitte, Kyndryl, Microsoft, NTT DATA, Rackspace Technology and Unisys as Leaders in two quadrants each. Google, Infosys and SAP are named as Leaders in one quadrant each.
In addition, Oracle and Zensar Technologies are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, LTIMindtree is named the global ISG CX Star Performer for 2025 among Multi Public Cloud - Services providers. LTIMindtree earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
A customized version of the report is available from Unisys.
The 2025 ISG Provider Lens® Multi Public Cloud Services report for the U.S. Public Sector is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens® Research
The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
