IDC PlanScape: Building a Business Case for a Government Cloud Transition

This IDC study discusses the many aspects of building a business case for an agency cloud transition strategy. A business case can be, in its simplest form, a simple motivation to purchase something; alternatively, it can be a thorough analysis of outcomes matched with investments over time. The strategic implication coupled with the size of the investment should dictate how deep and thorough an analysis should be. A complete cloud transition strategy merits a robust business-case analysis because it will impact agency strategy, operations, and talent management over the course of years, if not decades. Doing this right will increase the probability for successful digital transformation (DX) throughout an entire department or agency."Building any business case is the combination of science and art. This study focuses on the science side," says Erik Berggren, vice president of Research, Cloud Strategies, with IDC's IT Executive Programs (IEP)."For government agencies to fully take advantage of cloud, they need to take a second look at why they're doing it and what they're doing and double down on their cloud strategy. It begins with a business-case discipline that really focuses on 'the business of government,'" adds Thom Rubel, adjunct advisor with IDC's IEP.

Please Note: Extended description available upon request.

IDC PlanScape Figure
Executive Summary
Why Is Building the Business Case for a Government Cloud Transition Important?
What Is a Business Case for a Government Cloud Transition?
Strategic Arguments
Financial Arguments
Who Are the Key Stakeholders?
How Can My Organization Take Advantage of Building a Business Case for Government Cloud Transition?
Return on Investment
Total Cost of Ownership
One-Time Versus Transitional Costs for Cloud Transition Strategy Execution
Cost of Delay
Shadow Budget
Sunk Cost
Risk Assessment
Essential Guidance
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