How federal agencies can master multi-cloud strategies

Nearly all the 100 federal IT leaders surveyed for ICF’s 2025 Federal Software Reimagined report stated they’re taking steps to expand their agency’s use of cloud solutions in the next few years. And if the RFPs we’re receiving are any indication, many agencies are interested in pursuing a multi-cloud strategy. That’s not altogether surprising, considering the many benefits of a multi-cloud strategy:

• Cost efficiency and savings: Using multiple cloud service providers gives agencies greater leverage in vendor negotiations, helping to control costs and reduce the risk of vendor lock-in. It also allows agencies to optimize spending by selecting the most cost-effective provider for each specific service or capability.
• Resilience and risk mitigation: A multi-cloud strategy helps agencies strengthen system resilience by distributing workloads across multiple cloud providers. This approach enhances business continuity and disaster recovery—for example, if an agency uses both Amazon AWS and Microsoft Azure and one experiences downtime, mission-critical applications can quickly shift to the other cloud, ensuring uninterrupted operations.
• Innovation: By adopting a multi-cloud approach, agencies can tap into specialized capabilities that may be exclusive to a particular provider. For example, Azure was at one time the only cloud vendor offering a generative AI model with a FedRAMP Authority to Operate (ATO). During that period, agencies using AWS for data storage but looking to deploy generative AI tools had to integrate Azure into their environment to meet security and compliance requirements.

An agency shouldn’t pursue a multi-cloud strategy just for the sake of it. While powerful, multi-cloud architectures add significant complexity to any digital modernization effort. The smarter approach is to start with clear, well-defined use cases—then evaluate whether a single-cloud or multi-cloud environment best supports those needs.

5 considerations for building a multi-cloud strategy

If your agency determines a multi-cloud strategy is the best choice for your use cases, you first need to determine which cloud vendors—and which configurations—are the best match. Start by answering these questions:

What is your data sensitivity level?

As mentioned in the Azure AI example above, federal agencies can work only with FedRAMP-authorized cloud service providers. But beyond that, the sensitivity level of an agency’s data determines how many components/features or what parts of the cloud they can use. For example, public-facing data managed by a civilian federal agency may have many cloud options to consider, while an agency managing highly sensitive data (e.g., DHS, FBI, DOD) may have only a few.

What capabilities do you need your cloud vendors to offer?

Although each of the big three cloud vendors (AWS, Azure, and Google Cloud Platform) offer similar or comparable capabilities, they differ from one another in certain respects. In addition, some cloud platforms lend themselves to certain areas better than others. For instance, Azure is often preferred for its seamless integration with Microsoft products and services. On the other hand, while Google Cloud Platform (GCP) is not as widely used as AWS and Azure, it excels in providing powerful data analytics tools that can quickly process and analyze vast datasets. This capability is particularly beneficial for healthcare use cases, which is why many federal health agencies opt to work with GCP.

What applications does your agency already use?

The software ecosystem an agency relies on can significantly influence its cloud vendor decisions. For example, as mentioned above, agencies that are heavily invested in Microsoft products and services (e.g., MS 365) may lean toward Azure due to its seamless integration with the broader Microsoft environment. While that doesn’t rule out the use of AWS or GCP, integrating those platforms would likely require additional effort and complexity.

What skillsets do you have on staff to manage your multi-cloud strategy?

Cloud engineers and developers often specialize in a single cloud environment, frequently earning certifications and branding themselves as AWS engineers or Azure specialists. However, to successfully implement and sustain a multi-cloud strategy, agencies need teams with cross-platform expertise and fluency in the full range of technologies they deploy.

What is your budget?

In addition to costs for compute resources, storage, and support, federal agencies should also be aware that cloud service providers levy a charge any time data goes into or out of a cloud. Managing multiple providers often means duplicated infrastructure and additional tooling costs. Most cloud vendors provide a calculator on their website to help potential customers determine how much it will cost to use features/services in that respective cloud, and whether that cost fits into their budget.

The prevalence of multi-cloud among federal agencies

While there are no widely cited, public statistics on multi‑cloud usage in federal agencies, our experience across 100+ engagements suggests that roughly 10% of applications—those needing true portability, vendor redundancy, or specialized compliance—are well suited for a multi‑cloud strategy. That number is expected to rise as cloud platforms continue to evolve and early adopters begin to see measurable returns on their investments. On a related note, multi-cloud strategy at the portfolio or agency level (rather than application level) is becoming more prevalent, especially in areas where zero downtime is the expected performance (e.g., systems supporting the Federal Aviation Administration, defense, and national security).

For now, deciding whether—and how—to implement a multi-cloud approach remains a complex challenge. Partnering with an experienced, cloud-agnostic technology provider can help agencies navigate this decision with greater confidence. A trusted federal partner like ICF can support IT leaders in assessing use cases, comparing vendor capabilities, and developing secure, scalable applications that align with both industry best practices and federal compliance standards.

For a deeper look into how federal agencies are leveraging AI and multi-cloud strategies for enhanced efficiency and innovation, check out Federal Software Reimagined. Read the full report here and discover actionable insights to drive your agency's digital transformation.