Modernize in the Cloud for Innovation and Resilience

August 11, 2025 by Mike Teeters

Modernization remains a top priority for government agencies, and moving to the cloud plays a key role. The COVID-19 pandemic changed how residents interact with the government. They now expect the same online experience they have in other parts of their lives. Meanwhile, government agencies and the residents they serve want to be better equipped to adapt to challenges. Both goals are more easily achieved in the cloud.

Agencies know they need to transition away from outdated systems, but the budget and staffing challenges are real. I want to offer some perspective on the benefits of migrating to the cloud despite those obstacles, touch on some initial steps to start the journey, and finish by highlighting cloud-based innovations like artificial intelligence (AI).

Cloud Benefits for Performance, Workforce, Budgeting, and More

The cloud offers many benefits for agencies seeking to modernize their systems. Its purpose-built infrastructure, 24/7 monitoring, and regular updates help ensure systems run smoothly, are secure, and stay current. Systems can be scaled on demand during peak periods, ranging from planned activities like the annual benefits enrollment cycle to unplanned events, such as storms, floods, or other weather emergencies. An organization’s workforce is always using the latest software and learning new technologies, which keeps their skills current, improves job satisfaction, and aids recruitment. Cloud systems are also where innovations like AI are making a real impact to improve efficiency both internally and for residents.

From a budgeting standpoint, moving to the cloud shifts agencies away from large, periodic capital investments. Software upgrades become part of the annual operating budget, which helps make costs more predictable over time. Agencies can also begin to phase out on-premises infrastructure and the associated expenses. It’s a different model — one that supports more sustainable long-term planning.

Make Plans and Team Up for the Journey to the Cloud

While many agencies have already moved to the cloud, others are still in the early planning stages. I’ve seen how important it is to bring stakeholders — like city councils and county commissioners — along in the journey. It’s not just about choosing the right technology. It’s also about building confidence in how the cloud can improve resilience, scalability, and day-to-day operations. That kind of alignment lays the groundwork for long-term success.

Partnerships are a great way to gather insights on technology options and real-world projects. Look for opportunities to collaborate with other public sector organizations. Create a community of practice with local agencies, neighboring municipalities, county governments, and other organizations with knowledge to share. This is especially important when it comes to evolving best practices and playbooks for shared challenges. It’s beneficial to include a partner like Tyler Technologies that is working with a much larger pool of government organizations. Associations like the National Association of State CIOs, National Association of Counties, International City/County Management Association, and National League of Cities are also excellent resources.

Steps to Cloud Success: Inventory, Data, Priorities, Pilots, Metrics

In my mind, the first step when embarking on the journey to the cloud is for an agency to understand their current status thoroughly. First, catalog your existing systems and their condition. Second, take a detailed look at the types and condition of data sources. If you look at technologies like AI, its effectiveness is highly dependent on the data and business logic in an agency’s systems. Third, since there will be many possible paths forward, plan and prioritize assessing tradeoffs. Identify the most significant challenges, whether they are due to limited staffing, access issues, or something else, and take those into account to manage risks. Modernize with purpose.

It’s often best to start small and identify a pilot project. Whether it’s moving a single process to the cloud or testing a new AI feature in a targeted way, small projects can deliver big value and ease the larger transition.

Lastly, I encourage agencies to think about the success metrics that will enable them to measure a project’s impact. It may involve feedback from residents, response times to service calls, the number of permits being issued, or other factors. Sometimes, identifying those measures will help drive the decision-making on which projects to pursue.

Positioning for AI and Other Emerging Technologies

Agencies are facing a growing wave of emerging technologies. AI is a great example and a real game changer.

One of the advantages of the cloud is that it gives us a practical way to start introducing AI-based capabilities in a controlled, incremental way. At Tyler, we’re beginning to offer AI functionality within some of our existing cloud solutions. These features are optional, so agencies can explore them through pilot projects and decide what makes sense for their operations. It’s still early days for AI in government, but this approach helps build confidence and experience without requiring a big leap.

In the past, we’ve seen technologies converge to offer completely new experiences — consider just how impactful broadband and mobile have been over the past decade. What’s next, AI or some other new technology? Whatever it is, expect it to leverage the cloud to provide the flexibility and scalability needed by agencies and the communities they serve.

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