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Government loosens spending limit in third G-Cloud framework

14 Jan 2013
Cloud computing suppliers announced by government

The government has revealed its third G-Cloud framework for procuring IT services, increasing the spending limit for departments by £100m.

The G-Cloud initiative was first launched in February last year with the aim of bringing a range of cloud computing suppliers to public sector bodies and increasing the flexibility in procurement contracts.

The original framework only allowed supplier contracts to last for 12 months and capped departmental spending to £100m with a single supplier.

Such controls aimed to create competition in the government cloud computing market and to prevent it being monopolised by a few technology suppliers.

However both such controls have recently been watered down.

The second iteration of the G-Cloud framework in October allowed departments to sign 24-month contracts and now, with the framework's third iteration, the government revealed in a blog post that the total value of potential spend by departments is now set at £200m.

"A number of large projects have indicated an interest in using G-Cloud as a procurement vehicle, so as not to preclude these, or other large orders, we have increased the total maximum value of the framework," a Cabinet Office spokesman told V3.

The G-Cloud framework is the backbone to the CloudStore, and is the marketplace where suppliers compete for specific contracts with the Government Procurement Services to offer their services to the public sector. The CloudStore is where suppliers list their services.

The government has also announced plans to actively seek to increase G-Cloud services in four areas: identity services; service integration and service management; software support; and business process automation.

According to the government, the G-Cloud now offers 3,200 cloud services through the CloudStore. This is an increase of 200 services since the last iteration.

Meanwhile G-Cloud suppliers have made £4m from G-Cloud contracts since the framework's launch, with over 60 per cent of this going to SMBs.

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