In a review of federal legacy IT systems, the Government Accountability Office (GAO) identified 10 major systems, ranging in age from 23 to 60 years, that cost the government about $754 million annually to maintain. These outdated systems limit efficiency and scalability and leave the government open to cybersecurity risks, underscoring the urgent need to modernize government legacy systems through cloud and technology initiatives.
When agencies use legacy custom applications, they may face a range of serious security, financial, and operational risks. These systems often run outdated software and unsupported hardware, increasing their vulnerability to cyberattacks and system failures. Maintenance costs can consume up to 80% of the federal IT budget, leaving little room for modernization, and agencies also face costly service dependencies that lead to downtime and data loss. Legacy systems lack interoperability, making data sharing across departments inefficient and difficult. Government modernization is critical, as these outdated systems expose sensitive information, drain resources and reduce operational efficiency.
Cloud Solutions and Adoption in Government: The Cornerstone of Modernization
To address the increasing risks and inefficiencies caused by aging technology, Congress passed the Modernizing Government Technology (MGT) ACT in 2017. This law offers agencies two funding options: operational funds and the Technology Modernization Fund (TMF), which provides loans and grants for modernizing technology. The aim is to enhance cybersecurity, lower maintenance costs, and improve services for citizens. The MGT Act supports the federal strategy for cloud adoption and digital transformation to enable interoperability and real-time data sharing across government systems.
Modernization efforts can face obstacles that go beyond technical hurdles. Cultural resistance can slow down progress as employees fear disruption to familiar workflows and the complexity of learning new systems. Budget and procurement barriers, such as restrictive funding cycles and prolonged approval processes can further delay initiatives. Integration with existing infrastructure adds complexity, which often requires custom solutions to ensure compatibility. Agencies must maintain data integrity throughout migration by implementing strict standards to protect sensitive information.
Building the Digital Government of Tomorrow
Cloud technology has become the foundation for modernization, providing scalability, cost efficiency, and agility while maintaining compliance with sensitive data requirements. Federal agencies are increasingly adopting cloud solutions in line with standards such as FedRAMP (Federal Risk and Authorization Management Program), FISMA (Federal Information Security Management Act), and NIST (National Institute of Standards and Technology) Special Publications (800 series), which aim to ensure secure, consistent implementations. At RELI Group, we deliver cloud-based solutions to organizations and focus on IT operations to guarantee security, smooth performance, and scalability. Adoption of cloud technology by the government enhances data sharing, service continuity, and responsiveness to public needs, ultimately improving citizen experiences.
A successful modernization journey begins with evaluating and ranking legacy systems to determine which infrastructure needs to be upgraded first. Agencies should implement a phased migration strategy to reduce downtime and maintain security and compliance from the start. Investing in workforce training and applying Agile change management is crucial to preparing employees for new technology and workflows. Finally, collaborating with cloud and modernization vendors can bring in expertise and the right tools for smooth upgrades. At RELI Group, we assist government agencies in integrating cloud technology for modernization.
Modernization is not optional; it is crucial for creating a resilient, citizen-focused government. By upgrading legacy systems and adopting cloud solutions designed for the public sector, agencies can provide reliable services and respond effectively to changing needs.
