Modernizing mission-critical cloud ops with Datadog 

Federal agencies are accelerating their move to the cloud: Three-quarters of the 200 leaders surveyed for the 2025 ICF-Meritalk Federal Software Reimagined report said adapting modern software practices is critical to mission success. And nearly all (93%) expected cloud-native development to be a major part of that work.

But increased reliance on the cloud comes with risks, including higher costs. Agencies must ensure that every dollar they spend on technology ties directly to mission success and their systems.

Navigating federal constraints

Federal agencies face distinct challenges that go beyond commercial cloud adoption. Compliance with programs like FedRAMP ®, frameworks like TIC 3.0, and evolving OMB guidance adds layers of complexity to modernization efforts. Procurement constraints and legacy system integration further complicate the path forward. These realities demand tailored approaches that align with federal frameworks while driving mission outcomes.

Modernizing the management of cloud platforms is quickly becoming an imperative. When a federal agency wanted to improve its cloud operations, it turned to ICF for guidance. Together, we leveraged Datadog’s observability platform to transform the agency’s cloud management into a smarter, safer, and more financially transparent environment.

Finding the right FinOps fit

With so many observability tools available for cloud infrastructure and application performance monitoring, the agency engaged ICF to identify the platform that best aligned with their operational and FinOps priorities. Solution requirements included:

• Robust cloud monitoring, full-stack observability, and built-in FinOps capabilities
• AI-driven optimization and seamless ITSM integration
• A unified, single-pane view across multi-cloud environments

In the end, we recommended Datadog’s unified platform—an industry leader in end-to-end observability that meets both cloud infrastructure and application monitoring needs. Implementing Datadog delivered measurable benefits for NCI, including:

• Increased efficiency through better collaboration and faster incident response
• Improved decision-making across more than 300 AWS and Google Cloud accounts enabled by a true multi-cloud view
• Enhanced reliability and security for cloud environments and applications
• A 25% reduction in licensing costs by replacing the previous CCM tool and eliminating redundant systems
• Streamlined operations by managing 700+ infrastructure hosts across multiple applications in a centralized view
• Simplified cost governance with all cost-threshold monitors reviewed in a single dashboard to reduce overspending across cloud accounts

“Providing visibility into how applications and infrastructure perform across multi-cloud and hybrid environments, and how those resources are being consumed through a showback model, allows agencies to make informed recommendations for cost savings, budgeting, and forecasting,” says Jimmy Cesario, Regional Vice President at Datadog. “Connecting cloud performance with financial data gives leaders a clearer picture of value. This partnership sets a great example for how FinOps and modernization can work together to drive mission success.”

Harnessing the power of AI and FinOps

Looking ahead, we’re continuing to support this agency’s efforts to derive additional value from its Datadog investment. One avenue is Datadog’s Watchdog tool, which incorporates AI to understand patterns in cloud application vulnerabilities and usage. This data would help leaders make decisions about where and when to increase or decrease spending on cloud capabilities, driving efficiencies while lowering overall costs.

The agency also wants to integrate its Datadog instance with the ServiceNow platform, which can help the agency with tasks beyond monitoring and addressing cloud application problems. Through this integration, still in proof-of-concept, the ServiceNow ITSM could create key vulnerability or performance alerts based on issues that Datadog detects, making those issues actionable and trackable.

Thanks to its Datadog implementation, this agency has equipped its leaders to make faster, smarter decisions about its cloud-related costs, reducing financial waste and improving efficiencies across the agency. Through our ongoing partnership with this and other mission-critical digital modernization initiatives, ICF is helping advance the agency’s mission.

Interested in leveraging FinOps with AI-powered monitoring for your agency? Let’s talk about how ICF can help your agency reduce costs, manage risks, and accelerate mission outcomes.