Total G-Cloud sales have passed the £850m mark, after a solid £50m worth of deals in October.
A total of £856m worth of sales have now taken place over the G-Cloud platform since its launch in 2012, as local and central government continue to spend on cloud-based services.
G-Cloud also appears to be sticking to its agenda of offering more business to smaller firms. Some 50 percent of all sales by value went to SMEs and 60 percent by volume.
Central government remains the biggest spender on the G-Cloud at 77 percent of sales, compared with 23 percent in the rest of the public sector. This is perhaps not too surprising, as central government has a mandated ‘cloud-first’ policy requiring department to use the cloud whenever possible.
Deals in October included those with Amazon Web Services, Dell, Zendesk and BT, alongside many smaller firms.
The new figures come a week after the G-Cloud 7 framework went live. A total of 709 new suppliers are now accredited to offer cloud-based services to government, 95 percent of which are SMBs.
This means that there are now 2,566 suppliers on the G-Cloud framework, 89 percent of which are SMEs, offering 22,080 services.
IDC research director Massimiliano Claps told V3 that the rising G-Cloud sales show that the framework had helped to “disrupt the habit of public sector IT buying” to move away from all-encompassing, multi-year contracts.
However, he noted that, despite passing £850m, the figure is still a drop in the ocean compared with wider government IT spending.
“The overall size is decent, but not huge compared to the total IT spending of the UK public sector which is between £10bn and £15bn depending on how you define public sector and IT spending,” he said.
Claps also noted that only around 20 percent of the total cloud spend on G-Cloud is on core cloud services, specifically infrastructure-as-a-service, platform-as-a-service and software-as-a-service tools.
“The rest are what the Crown Commercial Service categorises as ‘specialist cloud services’, which include anything from website design to agile application development to cloud readiness assessment,” he said.
“So in terms of pure public cloud adoption, we are talking about £150m. Small relative to the total public sector IT spending.”
However, Claps said it is positive that SMEs are now able to capture more government IT deals, as most deals are smaller and therefore more realistic for them to bid for.
"The interesting thing is that SMEs represent over 60 percent of G-cloud deals and over 50 percent of G-cloud deal value," he said.
"That is not because they can capture bigger deals, but because the average deal size of G-Cloud contracts is well below £50,000. So it's affordable to bid on and deliver for SMEs and has lower risks in terms of financial, operational and technical lock-in for the government buyer."
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