Today marks the tenth anniversary of the G-Cloud framework being used to encourage public sector organisations to evaluate and pursue cloud-based services as part of the government’s Cloud First Policy.
Managed by the Crown Commercial Service, public sector customers have achieved £1.5 billion in commercial benefits since its launch in 2012, with over 5,000 suppliers offering more than 38,000 services to the public sector to aid their digital transformation. This is an average of £150 million each year.
Heather Wheeler, Cabinet Office Minister, said:
“It often goes unnoticed but initiatives such as the setting up and implementation of the G-Cloud agreement are exactly the sort of innovation this government is seeking to embed across departments.
“I’m extremely proud of the work done by Crown Commercial Service to continually find new ways in which government procurement can be made more efficient. I’m certain we’ll continue to see them carry on that important work.”
The aim of G-Cloud is to make it simpler for public sector bodies to procure cloud services on shorter contracts through a digital marketplace, as suppliers are encouraged to offer cheaper prices than they would commercially. This works by the system being commodity-based. Stopping customers being charged for services they don’t use, thus saving money.
Commercial Director and Chief Procurement Officer for Technology at Crown Commercial Service, Philip Orumwense, said:
“G-Cloud continues to be a great public sector success. It encourages innovation, drives economic growth, and improves services for UK citizens, by providing an agile and swift marketplace that connects public sector buyers with suppliers.
“Now, more than ever, SMEs have a crucial role to play in growing our economy, and G-Cloud is a proven method through which SMEs can win new business. It is yet another example of how CCS is simplifying public procurement processes and removing barriers to participation to support the government’s SME agenda.”
The next version, G-Cloud 13, is set to go live later this year and it is anticipated to play a part in G-Cloud helping to deliver £200 million in commercial benefits this year. Over the lifetime of the agreement, total spend has risen from zero to £11.5 billion as small and medium-sized enterprises reap the benefits.