SMEs receive 75% of Government G-Cloud spending
SMEs account for 75% of the spend through government cloud computing framework “G-Cloud”, after decisions to streamline departmental IT systems were made.
G-Cloud is a collection of cloud infrastructures, services and applications that are used by the government on a pay-as-you-go basis, rather than being paid for upfront. Suppliers are offered the framework by the Government to make procurement of their services cheaper and more transparent.
Originally hoping to award 25% of contracts to SMEs, G-Cloud’s vision has been a success as they aimed to bring small and medium sized businesses into their ecosystem.
The government’s G-Cloud programme runs across departments and aims to save money by moving their systems over to this technology. G-Cloud predict that this could save £120 million by 2014/15.
Their sales figures provided by G-Cloud suppliers show that 75% of spending through the programme has been through SMEs. The businesses involved range from small solutions companies through to larger well known names such as Microsoft.
G-Cloud’s strategy details a commitment to breaking down the obstacles that SMEs come up against by creating a procurement process that is simple and inexpensive.
This initiative will allow smaller businesses to challenge larger service suppliers to the Government and create a more competitive market place.