Storing and accessing data and applications via the cloud provides state and local governments with an opportunity to dramatically increase productivity. As such, cloud adoption is increasing rapidly. While cloud-based computing, storage and applications are more common than they were just a few years ago, obstacles remain. In April 2017, the Center for Digital Government (CDG) surveyed 104 state and local government IT decision-makers to gauge public sector cloud adoption. This report highlights the benefits, challenges and perceptions of the cloud among public sector leaders.