InsightsHow is G-Cloud doing?

How is G-Cloud doing?

The online procurement platform is about to enter its fifth iteration since its 2012 launch and includes more than 8,000 services. However raw spending indicates that the G-Cloud has a long way to go.

G-Cloud has been in the procurement headlines recently, for good and bad reasons, but how is the network actually performing?

The online procurement platform is about to enter its fifth iteration since its 2012 launch and includes more than 8,000 services. However, raw spending indicates that the G-Cloud has a long way to go. By January of 2014, almost two years after launch, a small £92m had been spent within G-Cloud.  When compared to estimates from analysts at Kable that put public sector ICT spending in 2011/2012 at £13.8bn.

Its biggest impact is that the G-Cloud does level the playing field. By the last count, 56 percent of total sales by value went to SME firms and not the just the big vendors. It is also accountable and auditable which means that the dodgy and often botched ICT deliveries are less easy to sweep under the table.

G-Cloud is slowly gaining momentum, soon it will surpass the £100m threshold, paving the way for future versions to increase scope and capability of the framework. However, a 2013 survey revealed that 80 per cent of local authorities have never heard of G-Cloud, which raises concerns. How successful can it be if its intended audience aren’t adopting it?

Over the next few years as cloud grows up and the first case studies around the success of G-cloud start to filter out into the press, the procurement framework might start to gain an unstoppable momentum. Channel partners aren’t going to completely revitalise their businesses overnight by joining G-cloud but the requirements are minimal enough to make it a sensible option, especially for five years down the line.

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