The 2025 SolarWinds and Market Connections report, UK Next-Gen Government IT: AI and Observability Insights, offers a revealing look into the cybersecurity challenges and opportunities facing government organisations. With insights drawn from 100 UK public sector IT decision-makers, the report paints a nuanced picture of a sector striving to modernise while grappling with complex security demands.
This article distills the most important security-related findings from the report, highlighting the obstacles, threat landscape, and emerging technologies shaping the future of public sector cybersecurity.
The Complexity Conundrum
One of the most striking findings is the sheer complexity of the current IT environment. A significant 58% of respondents described their IT infrastructure as either “extremely” or “very” complex to manage. This complexity is not just a technical inconvenience, it’s a direct threat to security. Complex systems are harder to monitor, more prone to misconfigurations, and more likely to suffer from visibility gaps that attackers can exploit.
Compounding the issue, only 39% of respondents expressed high confidence in their ability to manage these environments effectively. The gap between complexity and confidence is a red flag, especially in sectors like Health and Education, where complexity levels are even higher than average.
Budget Constraints and Skill Gaps: Persistent Barriers
When asked about the most significant obstacles to improving IT security, budget constraints topped the list (23%), followed closely by internal complexity (19%). Other notable barriers included a lack of technical solutions, insufficient training, and competing priorities.
These challenges are not new, but they are becoming more acute as the pace of digital transformation accelerates. The report underscores the need for sustained investment, not just in technology, but in people. Workforce skill gaps were cited as the most pressing challenge in digital transformation efforts, particularly in the Defence and Security sectors.
The Expanding Threat Landscape
The report also sheds light on the evolving threat landscape. The most frequently cited sources of security threats were:
- Careless or untrained insiders (56%)
- The general hacking community (55%)
- Foreign governments (53%)
- For-profit cybercriminals (40%)
These findings highlight the dual nature of cybersecurity threats: external actors are a constant menace, but internal vulnerabilities—often stemming from human error—are just as dangerous. This duality calls for a holistic approach to security that combines robust technical controls with comprehensive training and awareness programs.
Hybrid IT: A Double-Edged Sword
As organisations transition to hybrid IT environments, new security challenges are emerging. While hybrid models offer flexibility and scalability, they also introduce complexity and increase the attack surface.
Among the top challenges in managing hybrid environments were:
- Cost concerns (42%)
- Legacy system integration (40%)
- Difficulty automating tasks (38%)
- Security issues (35%)
The Visibility Gap
Visibility—or the lack thereof—is another critical issue. Nearly half of respondents reported a “slightly significant” visibility gap in their hybrid environments, while 40% considered it “moderately significant.” This lack of comprehensive, real-time monitoring hampers the ability to detect and respond to threats effectively.
Key visibility challenges included:
- Lack of a comprehensive enterprise-wide view (46%)
- Limited visibility into application performance (44%)
- Inconsistent metrics and monitoring tools (42%)
- Siloed data and integration issues (42%)
- These gaps not only hinder operational efficiency but also create blind spots that adversaries can exploit.
Observability: A Security Imperative
Observability is the ability to measure the internal states of systems based on the data they produce, and it is gaining traction as a critical enabler of security. Over half of respondents (51%) rated observability as “extremely” or “very” important for accelerating digital transformation.
The top perceived benefits of observability tools were:
- Enhanced security monitoring (73%)
- Faster incident response (66%)
- Improved proactive issue prevention (63%)
However, adoption is not without hurdles. Security and privacy concerns were the most frequently cited barriers, with 67% of respondents identifying them as significant. This concern was especially pronounced in the Defence and Security sectors, where 80% flagged it as a top issue.
AI: Promise and Peril
Artificial Intelligence (AI) is increasingly being explored as a tool for enhancing IT operations and security. About 23% of respondents reported actively using AI (including AIOps) to automate IT tasks, while 18% had adopted generative AI for similar purposes.
The most valuable AI capabilities for improving IT operations included:
- Issue detection (60%)
- Automation of threat responses (49%)
- Predictive analytics (49%)
Despite its promise, AI adoption is tempered by significant concerns. Nearly 30% of respondents were either “extremely” or “very” concerned about the risks associated with AI in IT management. The top concerns were:
- Data privacy and security risks (48%)
- Compliance with regulations (46%)
- Algorithmic transparency (36%)
These concerns underscore the need for clear governance frameworks and ethical guidelines to ensure that AI enhances rather than undermines security.
Sector-Specific Insights
The report also revealed sector-specific nuances:
Defence and Security organisations reported the highest levels of IT complexity and workforce skill gaps. Central and Regional Governments prioritised digital transformation more than AI integration. Health and Education sectors showed moderate adoption of observability and AI but faced significant challenges in visibility and compliance. These differences suggest that a one-size-fits-all approach to cybersecurity will not suffice. Tailored strategies that reflect the unique needs and constraints of each sector are essential.
A Call to Action
The report offers a sobering yet hopeful view of the UK public sector’s cybersecurity situation. While challenges abound - from budget constraints and skill shortages to visibility gaps and AI-related risks - there is also a clear path forward.
By investing in observability, embracing AI with caution, and addressing the human factors that contribute to security vulnerabilities, public sector organisations can build more resilient and secure digital infrastructures.
The journey won’t be easy, but with the right mix of technology, training, and leadership, the UK public sector is well-positioned to navigate the AI and cybersecurity maze and emerge stronger on the other side.
