Innovation requires many ingredients: a great idea, creativity, persistence, the right data, and technology. Governments around the world are taking advantage of the cloud to reduce cost and transform the way they deliver on their mission. The expectations of an increasingly digital citizenry are high, yet all levels of government face budgetary and human resource constraints. Cloud computing (on-demand delivery of IT resources via the Internet with pay-as-you-go pricing) can help government organizations increase innovation, agility, and resiliency, all while reducing costs. This whitepaper provides guidelines that governments can use to break down innovation barriers and achieve a digital transformation that helps them engage and serve citizens.