How state CIOs can balance their use of cloud versus on-prem data centers

State governments are relying increasingly on cloud computing to accelerate IT modernization and improve digital services. However, the exponential growth of government data has led to skyrocketing storage and management costs, forcing officials to reconcile which data is better managed in the cloud versus on-premises.

The choices depend on finding the right balance between technical and budget priorities, says Craig Orgeron, chief information officer for Mississippi, one of three state government IT experts discussing how to navigate those choices in a new video for StateScoop, underwritten by GDIT.

 “Data sensitivity and compliance requirements play a critical role in determining whether to use cloud or on-premise solutions,” says Orgeron. “From performance considerations like latency to integration challenges in hybrid systems, scalability and flexibility are key factors.”

Budget constraints further complicate decisions. Orgeron noted the difficulty of adapting to rigid budgets in public sector settings. “Predictability versus variability of costs is a significant concern,” he says. “We rely heavily on total cost of ownership (TCO) analyses to guide planning.”

Bo Reese, senior director for state and local civil business at GDIT, highlighted the importance of data governance and emerging frameworks like data fabric and data mesh. “Governance and ownership are critical, especially with distributed data ecosystems,” says Reese. “Data fabric simplifies rules and policies, while data mesh decentralizes data ownership — key for managing complex government data.”

Cybersecurity concerns also loom large in the cloud-vs.-on-prem debate. Morgan Reed, executive advisory team leader at AWS, stressed that aligning security tools across environments is critical. “Security teams are stretched thin,” says Reed. “Ensuring consistent controls between on-prem and cloud environments is vital.”

Reed also says AI further enhances efficiency, allowing employees to focus on high-value tasks. “Cloud migration can yield significant cost savings and better outcomes,” he says. “For example, one state [AWS worked with] saved $10 million by consolidating 88 server rooms.”

Looking ahead, Orgeron stressed that “rapid changes in technology, particularly AI, demand agility. Balancing flexibility, cost management and security while embracing data governance is critical.”

Learn more about how GDIT empowers state and local government agencies with transformative technology.

This video panel discussion was produced by Scoop News Group, for StateScoop and underwritten by GDIT.