A recent market analysis by Information Services Group Inc. (ISG) highlights the growing trend of U.S. public sector agencies adopting hybrid cloud managed services to modernize outdated legacy systems amid budget and staffing constraints. The report underscores the importance of advanced cloud service models in improving governmental operations, enhancing citizen engagement, and addressing complex IT regulatory requirements. Despite challenges such as limited resources and federal changes, 90% of state, local, and educational organizations are expected to embrace hybrid cloud models. The analysis identifies modernization, cybersecurity, and hybrid cloud adoption as key focus areas for technology investments in the sector. The report also evaluates the capabilities of 38 providers, with Rackspace Technology recognized as a leader across all evaluated areas, and other notable leaders including Ensono, Kyndryl, NTT DATA, and Unisys.