1. Government-sponsored national cloud
This first approach is used by the majority—60 percent—of central governments. With this sourcing strategy, the government specifies the types of cloud services it’s interested in, including its requirements for data privacy, security, and sovereignty, and either chooses a dedicated service provider for its national cloud (national telecom, local host, etc.) or bids out the initial workload to the private sector. This approach is favored by governments that want to use the transition to the cloud as a way to support their local IT industries by developing skill sets, creating new jobs, and supporting companies that are going to pay local taxes.
2. Government as service provider
In the second approach, employed by about 30 percent of national governments, the private sector in that country lacks the skills and resources to build out the national cloud infrastructure, so the government itself becomes the service provider. We see this in many emerging markets, where the local IT industry is still in an early maturing phase. This is consistent with the ways countries have developed their critical infrastructures over time. Take telecom, for example: Governments initially supported and developed the infrastructure, and then turned it over to private industry.
3. Government procurement framework
The third approach, used about 10 percent of national governments, is best for larger, more developed markets such as the U.S. and U.K., which have established procurement practices. That’s because this approach involves the central government precertifying cloud providers and solutions, and then adding them to its procurement framework. This framework is then published to its departments, which can buy from the listed providers without going through the public tender or request for proposal (RFP) process.