Cloud computing enables on-demand access to shared computing resources providing services more quickly and at a lower cost than having agencies maintain these resources themselves. Chapter 1 discusses selected agencies' progress in implementing cloud services, the extent to which those agencies increased cloud service spending and achieved savings or cost avoidances, and examples of agency-reported cloud investments with notable benefits. The Office of Management and Budget (OMB) has developed a new strategy to accelerate agency adoption of cloud-based solutions: Cloud Smart. Chapter 2 reports on the strategy of successful cloud adoption: security, procurement, and workforce. The Department of Defense (DoD) has entered the modern age of warfighting where the battlefield exists as much in the digital world as it does in the physical. Cloud is a fundamental component of the global infrastructure that will empower the warfighter with data and is critical to maintaining our military's technological advantage as reported in chapter 3. Chapter 4 discusses accelerated adoption of the Joint Enterprise Defense Infrastructure (JEDI) Cloud program. In the Clarifying Lawful Overseas Use of Data (CLOUD) Act, Congress enacted one of the first major changes in years to U.S. law governing cross-border access to electronic communications held by private companies. Chapter 5 reports on the major components of the CLOUD Act. Chapter 6 discusses United States v. Microsoft Corp as it pertains to the CLOUD Act.