Databarracks Responds To HP SME Letter

Jul 09, 2014

Cloud IT services SME Databarracks has responded to claims that tech giant HP wrote a letter to HM Treasury expressing concerns about government’s drive to include more small businesses.

Currently, Whitehall is aiming to 25% of all government business via SMEs by 2015, but HP claims this is excluding larger firms such as itself - hinting that it does not believe smaller firms to have the necessary capabilities to handle large contracts.

However, Databarracks managing director Peter Groucutt has spoken out against the alleged remarks of the tech giant to defend the position of his company and others.

“Claims that SMEs are not well equipped enough to come with public sector IT requirements are ridiculous and the reaction from firms such as HP are testament to this,” claimed Groucutt.

“For years the [large] systems integrators (SIs) that have controlled the market have made it purposely difficult for smaller providers to break the oligopoly that they created.

G-Cloud providers have persevered however, and we’re finally starting to make headway as real competitors – much to the annoyance of the SIs.

“We’re facilitating a move away from long-term, expensive contracts by giving government Departments the opportunity to implement a whole set of new, flexible solutions that were previously not an option,” he added.

Groucutt Vocal On This Issue

This is not the first time the managing director has spoken up on the topic of SMEs doing government business.

Last month, government Ministers were claimed to have said that smaller firms were not up to the job of large public sector contracts – Groucutt however, disagreed.




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