Federal government cloud computing adoption is expected to significantly accelerate over the next 12 to 18 months, increasing the importance of cloud monitoring, according to a survey of over 300 government technology leaders. Currently, about 40% of application portfolios are cloud-based, with projections of increases to 50% for civilian agencies and 60% for defense. While cloud adoption is on the rise, there is hesitancy in adopting AI technology due to limited staff knowledge and budget constraints. Modernization priorities differ between civilian and defense agencies, with the former focusing on advanced analytics and technology, and the latter on cost reduction. Despite recognizing the critical importance of performance tracking and monitoring, agencies face challenges like budget constraints, resource allocation, and staff expertise shortages in their modernization efforts. The survey suggests automated, AI-driven observability solutions like Dynatrace could play a crucial role in overcoming these obstacles by providing advanced analytics and actionable intelligence without requiring extensive AI expertise, thus helping agencies to accelerate IT modernization initiatives.