Industry Insights

Why the Government Is Betting Big on SaaS

Written by Fed Gov Today | Jun 18, 2025 9:51:53 PM

 

 

Original broadcast 6/22/25

Presented by Snowflake & Carahsoft

Federal agencies are reaching a crossroads in their approach to technology modernization—and at that intersection lies Software-as-a-Service (SaaS). In a wide-ranging interview on Fed Gov Today with Francis Rose, Steven Coles, President of Snowflake Federal, explained why agencies are embracing SaaS and other commercial technologies with renewed urgency. From shrinking deployment timelines to owning their data outright, Coles outlined a vision for how government can modernize at mission speed.

The Pressure to Move Faster

“We’re at an inflection point,” Coles began. For years, agencies designed bespoke IT systems through lengthy contracting processes and custom development cycles. That model, according to Coles, is no longer sustainable. “Agencies can’t afford to stand up systems over two to three years,” he said. Instead, they need instant capabilities—platforms that can be deployed in days or weeks, not years.

Modern SaaS platforms offer precisely that. With updates delivered over the air, agencies can access the latest innovations—like AI model upgrades—without re-initiating complex contracting processes. “Imagine if the F-35 program needed a new AI update,” Coles suggested. “You can’t wait for all the contracting theater. You need to get that into the field immediately.”

Commercial Momentum Meets Government Mission

According to Coles, the key strength of modern SaaS solutions lies in their maturity. “These are technologies already vetted and used widely in the commercial marketplace,” he explained. Agencies no longer have to reinvent the wheel—they can adopt proven, secure, scalable platforms. By doing so, they dramatically reduce the cost, risk, and time associated with building from scratch.

That approach is already taking hold. Coles credited agencies for “beginning to bring in commercial technologies” in a way that was nearly unthinkable just a few years ago. “If they build it themselves, it takes years. If they adopt commercial, it’s available in months or fewer,” he said.

Barriers to Adoption: The ATO Bottleneck

Despite this momentum, Coles acknowledged that some systemic barriers remain. Chief among them is the Authority to Operate (ATO) process—a multi-layered security review that can delay deployment for months or even years. “If I was to ask you whether the Chinese or the Russians are waiting on the ATO process to deploy their systems, we both know the answer,” he told Rose.

Coles argued for a more strategic approach: use platforms that go through the ATO process once and can then be deployed broadly across agencies. “One-time ATOs, rather than redoing it for thousands of systems, lets you bring innovation in at will,” he said. That would significantly accelerate the deployment of secure capabilities without sacrificing cybersecurity posture.

The Culture Shift: Breaking Old Habits

For many agencies, embracing SaaS represents more than a technical change—it’s a cultural one. “Forever, agencies have built their own systems, with their own system integrators, and their people,” Coles noted. This longstanding ecosystem can be resistant to outside solutions, even when those solutions are demonstrably faster and more cost-effective.

But Coles sees signs that this culture is shifting. Recent headlines about government agencies being unable to access their own data—because of restrictive contracts with legacy vendors—have forced a reexamination. “The mission shouldn’t have to come to a contractor to get access to their own information,” he said. SaaS, by design, makes data accessible and ownership unambiguous.

Data Ownership: A New Non-Negotiable

Coles stressed that SaaS platforms like Snowflake’s are built with a core principle in mind: the customer owns the data. That may sound simple, but for years, contracts gave vendors de facto control over critical federal data sets. “That’s just the old way of doing business,” he said. “Modern SaaS says, ‘This is your data. You own it. No questions asked.’”

He doesn’t believe new governance models are needed to enforce that—just smarter contracts and the willingness to demand clarity. “People need to think differently about how they’re doing business,” Coles urged, encouraging procurement leaders to prioritize data control in future acquisitions.

Collaboration Across Teams

Modernization doesn’t rest solely with the CIO. Coles acknowledged that successful SaaS adoption depends on alignment across the technology, procurement, and financial management teams. But it starts with the IT leaders. “It’s really the technology shops that decide what technology they want,” he said.

SaaS enables those tech leaders to bring in cutting-edge tools—AI platforms, cybersecurity analytics, advanced data management—without waiting for lengthy contracting cycles or major architecture overhauls. That agility is essential to outpacing adversaries and meeting mission needs in real time.

A Model for the Future

Coles closed with an optimistic view of the future: the government doesn’t need to invent a new model for modernization. It just needs to trust the ones that already work. “The commercial model has worn out all the kinks,” he said. SaaS has evolved past its infancy and is now ready for secure, mission-ready adoption across federal agencies.

By reducing deployment times, ensuring data ownership, and cutting through red tape, SaaS gives government the tools to deliver faster, smarter, and more securely. For Coles and others on the front lines of federal tech transformation, the mission is clear—and the time to act is now.