G-Cloud Sales Move Towards £200m

Jun 16, 2014

Nearly £200m has been spent via the G-Cloud procurement framework since it went live in 2012, according to new figures published last week.

Of the £191.5m spent through the network up until the end of May 2014, 57% of total sales were awarded to SMEs – down from the 60% reported for sales up until the end of March this year.

However, as it is Whitehall’s aim to do 25% of all government business with SMEs by the end of 2015, the figures still suggest that it is still on track to meet this target.

Central government spending still dominates G-Cloud usage, with 80% of all sales being through Whitehall and 20% through the wider public sector.

Local government contributed just £11.4m to the total G-Cloud spend and spent less in May (£642,258) compared to April (£894,078).

G-Cloud has been under much discussion recently, after a report claimed that local government was ignoring the framework and “wasting millions” in the process.

The study was soon criticised by a number of organisations including Socitm, the body representing those in public sector IT.

The organisation says the report failed to take into account a number of factors, most notably that it didn’t recognise large, one-off sales – this may explain why local authorities seem to have spent less in May 2014.

SaaS and Specialist Cloud Services Sales Fall

Spending on “specialist cloud services” is down from £16.7m in April to £9.57m in May. Software as a Service (SaaS) sales also fell from £1.89m to £504k.

Cloud Infrastructure as a Service (IaaS) and Cloud Platform as a Service (PaaS) sales have remained steady - £1.6m to £1.72m and £57.8k to £177k respectively.

© 24N.biz 

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