G-Cloud sales surge by £30m to almost £250m

Central government continues to lead the way with cloud adoption

G-Cloud sales have hit nearly £250m due to an increase of £30m in the past month, fuelled by sales of services provided by SMEs to central government departments.

Uptake of cloud services procured through G-Cloud is increasing across every branch of the public sector, though sales to the central government contribute to the majority of the £249m total.

SMEs continue to drive the adoption of cloud services in the public sector, snapping up 54 percent of the total sales made through the G-Cloud framework.

However, sales figures from June indicate that large enterprises are catching up. Figures for the month indicated that SMEs contributed £9m to the total amount, while larger enterprises added £8.95m to the pot. Data from July showing the difference between SMEs and larger firms has not been revealed.

This could suggest that larger cloud providers are seeing promising sales opportunities within the UK’s public sector.

Specialist cloud services take up the largest proportion of monthly spending through G-Cloud, peaking at £22.4m in March. For June this was £14.7m.

Other cloud products supplied as a service contribute little to the total sales amounts. Cloud infrastructure sales were £1.37m while platform-as-a-service (PaaS) products contributed only £228,000 to June’s G-Cloud sales.

Central government is still the main public sector adopter of cloud services, netting 79 percent of total G-Cloud sales.

The rest of the public sector only contributes to 21 percent of the total sales, indicating that cloud implementation in local government does not follow suit with Westminster.

This gap could be addressed with the Cabinet Office’s move to use its Digital Marketplace to replace CloudStore as a portal for public-sector organisations to purchase cloud services through.

In a blog post Ivanka Majic, the government’s digital commercial services manager, said that the move to the Digital Marketplace will make it easier for public sector customers to find G-Cloud service providers. She added: “We will now be focusing on improving the functionality for suppliers.”

A four week transition period will begin at the end of August and, providing everything runs smoothly, the Cabinet Office plans to switch off CloudStore by the end of September.

Over the next 12 months, the G-Cloud procurement framework will be merged with the government’s Digital Services Framework, essentially creating a single central procurement service for cloud and digital products.

One local council has bucked the trend of lagging behind central departments. The Royal Borough of Windsor and Maidenhead recently used G-Cloud to its advantage by shifting its on-site IT infrastructure to the cloud in a bid to save more than £2m.

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20 August 2014 | 11:08 am – Source: v3.co.uk

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