San Francisco has embraced cloud services to address budget shortfalls and modernize IT. Key initiatives include migrating email, web content management, permitting systems, and virtual servers to the cloud. This has provided significant cost savings of over $27 million while improving security, scalability, and disaster readiness. The city leverages cloud services for video streaming, mobile apps, and social media analytics to better engage the public. Cloud adoption is expected to continue transforming San Francisco's government IT infrastructure and operations.