SolarWinds, a leading provider of secure IT management software, has released its Next-Gen Government IT: AI and Observability Insights Report, shedding light on the critical challenges faced by IT professionals in the Federal, State, Local, and Education sectors. Conducted in partnership with Market Connections, the survey gathered insights from 200 U.S. IT decision-makers to assess security threats, IT visibility, and the adoption of AI in digital modernization efforts.
Findings from the Report
1. Digital Transformation Still a Work in Progress
- Only 6% of respondents have fully completed their digital transformation journey.
- 41% are actively implementing transformation strategies, while 42% are in early stages with limited progress.
- Top barriers to digital transformation:
- Data privacy and security concerns (62%)
- Budget constraints (57%)
- Complexity of system integration (56%)
2. IT Security Threats and Challenges
- Primary security threats:
- General hacking community (59%)
- Careless or untrained insiders (58%)
- Top obstacles to IT security improvements:
- Budget constraints (28%)
- Complexity of internal environments (20%)
- The education sector saw a shift in security concerns, with hacking threats surpassing insider risks for the first time since 2019.
3. AI Adoption: Progress and Concerns
- 33% of organizations are using AI for cybersecurity automation and IT observability.
- AI is helping with predictive analytics and issue detection, but 40% of respondents remain highly concerned about data privacy and compliance risks, slowing full-scale adoption.
4. Cloud and Hybrid IT Environments
- Government private cloud usage has risen to 70%, while on-premises data center use has dropped from 91% (2023) to 58% (2024).
- Hybrid environments remain the most anticipated future setup (48%).
- Over half of respondents find managing IT infrastructure highly complex, though confidence in managing it has improved from last year.
5. Managing Hybrid IT Infrastructure
- Biggest challenges in hybrid IT:
- Complexity of management (73%)
- Security risks (67%)
- Legacy system integration issues (55%)
- Cost concerns (51%)
- 63% struggle with monitoring multiple environments, limiting IT visibility and control.
Expert Insights
“As the public sector adopts more cloud and hybrid IT solutions, organizations must navigate increased security and compliance complexities,” said Travis Galloway, Senior Advisor, Government Affairs at SolarWinds. “By identifying key challenges and solutions, SolarWinds aims to help government agencies build operationally resilient IT environments.”
