Across the federal government, agencies are undergoing a large-scale digital transformation. Evolving needs have compelled agencies to modernize their IT infrastructure and embrace the latest technology innovations. Cloud computing in particular is a widely desired tool that empowers digital modernization. With the potential for greater scalability, increased efficiency, reduced costs, and more, cloud capabilities are understandably appealing to the federal government. Despite the importance of cloud to the future of federal IT, there is little clarity on what is actually being done to leverage cloud or what progress has been made. This ambiguity leaves many confused about the federal government’s cloud implementation and what constitutes an agency’s cloud environment. This report provides answers and clarity to the five things you need to know about the federal cloud environment.