The Cloud Lives in Our Pockets: Overcoming the Challenge of Cloud Adoption
In 2013, the Government of Canada set out a vision for “a world-class public service equipped to serve Canadians now and into the future.” In short order, the government launched its cloud adoption strategy. Now, ten years later, Canada’s Auditor General Karen Hogan has characterized the federal government’s information technology modernization and adoption of cloud-based systems as “very slow.” Canada’s former Chief Intelligence Officer, Catherine Luelo, identified funding constraints and a risk-averse culture as barriers to transition. In the meantime, technology continues to adhere to Kurzweil’s law of accelerating returns—advancing well beyond the basics of cloud.
Cloud Adoption in Canada

Cloud is the backbone for the technology services that Canadians have learned to rely on in virtually every aspect of their lives. Cloud lives in our pockets and helps us operate everything from home thermostats to online banking services.
The Federal Government’s use of cloud has progressed considerably since Canada’s first vision, set 10 years ago: it’s more secure than ever; it provides agility and flexibility, allowing governments to respond to crises like the pandemic; it’s environmentally sustainable; and it allows for developers to stay current and innovate in real-time.
“Without an even stronger foundation of cloud-based technology, government services will be less agile, less responsive, and struggle to adapt to the evolving needs of citizens.”
Cloud is widely adopted and used within the private sector for virtually every business activity that is essential to our economy. Consumers expect and are familiar with easy-to-use applications with simple interfaces and intuitive navigation that are reliable and secure.
Without an even stronger foundation of cloud-based technology, government services will be less agile, less responsive, and struggle to adapt to the evolving needs of citizens. Outdated technology platforms may introduce bottlenecks and service disruptions, leading to frustration for people in Canada and our public servants.
Cloud adoption is also challenging Canada’s provinces and territories. Every province has acknowledged the importance of technological modernization. However, only Quebec, Ontario, British Columbia, and New Brunswick have detailed plans that include strategy, goals, and timelines. Like the federal government, not all of them include adequate funding.
Technology modernization efforts in rural Canada present even more complex challenges. Many remote communities still do not have the stable internet connections necessary for cloud technology.
In addition to public sector service delivery, cloud and related technologies can help small local businesses gain access to wider markets, connect with customers online, and participate in digital commerce, driving Canada’s small and remote economies.
Repeated short-term fixes lead to a larger technology debt. Organizations, both public and private, that prioritize patching legacy systems on the brink of failure instead of investing in the right technology modernizations face a long list of potential critical failures. Canada’s Auditor General has provided examples of the government of Canada’s technology debt, including “system failures; increased operating costs; and security vulnerabilities.” The rapid adoption of AI will add to new technical debt.
There is no choice but to move forward with modernization to develop an industry-leading digital core that is critical to enable faster business innovation and reinvention. Thankfully, many have done it already, and there are lessons learned the government can follow.
Learn From Industry Leaders

Canada can learn from successful transitions in industries like banking, where security and privacy are top priorities. The growing gap in cloud adoption is leading to missed savings and underserved citizens. While the journey may seem complex, new Accenture research found that improving one capability—like data, for example—can trigger automatic improvements in others.
“The growing gap in cloud adoption is leading to missed savings and underserved citizens.”
For this reason, organizations should first assess where they are across their digital core capabilities and then prioritize areas of need. This will catalyze a virtuous cycle of continuous improvements across the digital core. Specifically, don’t try to do it alone. Pre-integrated solutions from the ecosystem marketplace can provide a starting point. Each delay in embracing the cloud means missing out on innovation opportunities. Just like tapping a linked bank card on our phone for morning coffee, secure and streamlined processes are possible.
Invest in and Lead a Culture Shift
Citizens’ Services Minister Terry Beech has been charged with “Develop[ing] a whole-of-government approach to modernize our digital services.” Backed up with adequate funding and a culture shift toward bold leadership, this cabinet directive is a real opportunity to drive cloud technology adoption.
“Cloud adoption is proven to significantly reduce IT costs by improving operational efficiency, allowing for automatic scaling to meet demand and reducing the need for physical infrastructure.”
There is a misconception that this transition will cost more than maintaining dated legacy systems. This is not the case. Cloud adoption is proven to significantly reduce IT costs by improving operational efficiency, allowing for automatic scaling to meet demand and reducing the need for physical infrastructure.
Adopt the Most Secure Technology
Personal data sitting on hard drives is at more risk than data stored on the cloud. This may not have been the case ten-plus years ago, but it is today. The government can show it is serious about cybersecurity by fostering trust, compliance, and confidence in cloud adoption. Protection of Canadians’ personal information is paramount as cybercrime is on the rise.
“Instead of seeing the adoption of cloud as the culmination of the journey, organizations must recognize that cloud is a future-proofing continuum.”
Modern systems are needed for a modern society. The problem is that cloud isn’t modern anymore. It’s an essential foundation needed for a modern digital core for service delivery. Instead of seeing the adoption of cloud as the culmination of the journey, organizations must recognize that cloud is a future-proofing continuum: flexible access to a collection of dynamic, ever-improving technologies and services. For example, the government is currently looking at AI legislation and regulations and wondering what it looks like to bring this into government. The reality is that this isn’t possible without substantial cloud adoption first.
The opportunities are limitless. We can’t unlock the promise of advanced AI without a continuum of cloud services. Imagine a modern digital core that is integrated with cloud, data, and AI for impactful citizen services and easy access. Our public service digital capacity must keep pace so Canada can remain an attractive place for investment and talent, drives innovation, and leverages data to make smart policy decisions.


