G-Cloud computing initiative marks 10-year anniversary

£1.5 billion in commercial benefits has been achieved for public sector customers through our G-Cloud framework since its launch in 2012.  

The G-Cloud agreement supports the Government’s Cloud First policy, which was introduced in 2013 to encourage public sector organisations to evaluate and pursue cloud-based services, which are less costly than on-premises alternatives. 

Over 5,000 suppliers offer more than 38,000 services to public sector organisations through the agreement, to aid their digital transformation.

The aim is to make it easier for public sector bodies to procure cloud services on short-term contracts through a Digital Marketplace. Suppliers are encouraged to offer prices that are cheaper than commercial prices, and the agreement is commodity-based, which means that customers only pay for what they use. 

£1.5 billion, an average of £150 million each year, has been accrued in commercial benefits over the lifetime of agreements signed since G-Cloud was launched, representing significant savings for the public purse.

The next iteration, G-Cloud 13, is expected to go live later this year. It is expected that G-Cloud will help deliver around £200 million in commercial benefits this year alone. 

Cabinet Office Minister Heather Wheeler 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.

Total spend over the lifetime of the agreement has gone from zero to £11.5 billion with small and medium-sized enterprises (SMEs) reaping the benefits. Over 90 per cent of all suppliers listed on the G-Cloud framework are SMEs, winning some £4 billion in public contracts.

Philip Orumwense, Commercial Director and Chief Procurement Officer for Technology at CCS, 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.

Seth Finegan, UK CEO of Informed Solutions said:

The value of G-Cloud has been substantial for us as an independent digital solution provider. We have witnessed first-hand how effective it has been as a digital marketplace.

 We have been given opportunities to bid for and win contracts for nationally significant digital transformation programmes and services, which are used by millions of people every day in an increasingly connected and converged world.

Under G-Cloud 13, which is expected to go live later this year, the following changes will be introduced:  

• improved terms and conditions, with greater inclusion for the provision of day rate cloud support services
• inclusion of the latest procurement policies, including prompt payment
• introduction of a fourth Lot for further competition for cloud support services for larger, more complex requirements
• the call-off term has changed to 36 months with an optional 12 month extension

To find out more, visit the G-Cloud agreement page.