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Total spending through G-Cloud is fast approaching £200m but use by the wider public sector and local government is still lagging

Total spending through G-Cloud is fast approaching £200m but use by the wider public sector and local government is still lagging

Total spending on cloud services through the UK government’s Cloud Store marketplace hit £192m at the end of May, up from £180m the previous month. But more than 85 per cent of this was accounted for by the UK government’s own spend, with the portal still failing to gain serious traction within the the wider public sector.

In May government organisations spent £191.6m on cloud services through G-Cloud, the UK government’s cloud services procurement framework.

So far, £108.6m or 63.6 per cent of that sum has been spent with small and medium sized enterprises selling services on the Cloud Store, and £83m or 36.4 per cent with large enterprises and IT incumbents.

The latest figures suggest healthy growth rates for the procurement programme, which is just a few years old. In February this year total spending through G-Cloud approached $100m. March saw the highest growth rates with a registered total spend of £30.6m.

Last month UK Cabinet Office minister Francis Maude told an audience at a public sector procurement trade show in London that the G-Cloud programme has been successful at opening up the public sector market to SMEs.

“We know the best technology and digital ideas often come from small businesses, which is why we’ve created the G-Cloud framework… For both government and the companies listed on the CloudStore, this means less bureaucracy and less hassle,” Maude said.

But the latest figures also show the government is struggling to make the G-Cloud programme visible to the wider public sector and local government.

Just £26m of the £192 or 13.5 per cent of the total spend through G-Cloud came from the wider public sector as opposed to central government agencies; this past month £1.9m of the £12m spent through G-Cloud came from the wider public sector, and £700,000 was spent by local government bodies and councils.

Educating the wider public sector is a key aspect of the government’s current bid to broaden and rebrand the Cloud Store into the Digital Marketplace, a single platform for buying digital technology which will include services sold through G-Cloud as well other procurement frameworks like the PSN.

In April G-Cloud head, chief operations officer and deputy director of operations for the Government Digital Service, Tony Singleton, said that the organisation will take a number of steps to educate buyers on, and increases awareness of, the G-Cloud programme.

“We need to ensure that everyone involved with IT both in central government and the wider public sector, fully understands the benefits of cloud technologies as well as how G-Cloud works and the benefits it offers,” he said.

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