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G cloud - what is it?

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A presentation for Eduserv staff, outlining what G-Cloud is, how it is used and what effect it is having.

A presentation for Eduserv staff, outlining what G-Cloud is, how it is used and what effect it is having.


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  • 1. G-Cloud - what is it? for Eduserv staff @andypowe11 May 2014
  • 2. What is G-Cloud? • A framework agreement with suppliers that sets out the terms and conditions under which purchases (‘call-offs’) can be made throughout the term of the agreement • Part of a suite of ‘IT transformation’ policies from the current government that includes: – Cloud First – Digital by default – GDS – CloudStore – SME agenda
  • 3. Cloud First “The formal introduction of a ‘Cloud First’ policy will drive wider adoption of cloud computing in the public sector, boosting business – and furthering savings and efficiencies – through the government CloudStore, which is a quicker, cheaper and more competitive way for the public sector to buy IT” Francis Maude Minister for the Cabinet Office and Paymaster General May 2013
  • 4. Cloud First “On average, we saw savings of around 50% and there are examples of savings of more than this. Other benefits buyers have spoken about include greater transparency; flexibility; a simpler, clearer, faster way to buy and ultimately better value for the taxpayer – once the requirement has been defined, we have put a contract in place in three minutes!” Tony Singleton G-Cloud Programme Director April 2014
  • 5. Three minutes? • …yeah, right! • Emphasis is largely on cost savings and efficiency • No real mention of innovation, agility, scalability, etc. • Which rather flies in the face of received wisdom about why it is good to buy from the cloud • But anyway…
  • 6. G-Cloud - the detail • G-Cloud frameworks last for 1 year… • …and a new framework is issued very 6 months • So G-Cloud 5 is just about to go live, G-Cloud 3 is just about to end • Purchases thru G-Cloud have maximum life of 2 years – which doesn’t necessarily mean that customers have to move suppliers every 2 years – but they do have to re-evaluate every 2 years
  • 7. What is CloudStore? • Online shop-front for G-Cloud • A catalogue of available services • Descriptions, accreditations, pricing, terms & conditions, etc. • Primarily intended as a procurement device rather than a marketing device – but inevitably some cross-over
  • 8. G-Cloud sales • Are supposed to be: – cloud-like – commodity sales – little scope for negotiating bespoke services – priced for government as a whole (i.e. you have to offer same price to all buyers)
  • 9. Meanwhile, in the real world • Bespoke ‘solutions’ can be built from commodity services • Individual services can have multiple ‘service options’ • Pricing can include discounts – which can be complex – e.g. we discount by both volume and duration • Buyers typically do not understand that they can’t negotiate a bespoke sale
  • 10. What can/cannot be sold? • G-Cloud services grouped into 4 lots: – Lot 1 - IaaS – Lot 2 - PaaS – Lot 3 - SaaS – Lot 4 - Specialist Cloud Services (services outside of the three traditional ‘as a service’ (aaS) areas to support customers taking on cloud services) • Colocation • Agile Software Development
  • 11. Who can buy? • Central government • Related public sector bodies, ALBs, etc. • Local government • Third sector organisations • NHS and other health providers • Education (all levels) • See canibuyoffgcloudornot.com
  • 12. Guidance to buyers • Use ‘long-list -> short-list -> select’ process • Use ‘lowest cost’ or ‘MEAT-based’ selection at short-list stage • Ask suppliers for extra information to help make final decision on ‘best fit’ basis • Note 1: buyers must maintain records to prove that their assessment has been fair • Note 2: long-list -> short-list often includes filtering by accreditation status
  • 13. Eduserv and G-Cloud • We’ve been on G-Gloud since G-Cloud 2 • Our offers have been relatively static since then - currently – Five professional services (Lot 4) – Four managed services (Lot 4) – Three IaaS services (Lot 1) – Two SaaS services (Lot 3) – …and a partridge in a pear tree
  • 14. G-Cloud and accreditation • IL2 and IL3 accreditations linked to specific G-Cloud services (using unique reference number) • Badges listed next to services on CloudStore • Semi-automatic carry forward to new iterations of the framework • Not yet clear how this will work in the new world of Official information with unassured, assured and accredited services
  • 15. G-Cloud by numbers • £154,635,952 - spent thru G-Cloud to end of March 2014 • 60% - of total sales by value awarded to SMEs • 79% - of total sales by value procured by central government • >13,000 - services listed on CloudStore • 1,160 – suppliers listed on CloudStore (G-Cloud 5)
  • 16. G-Cloud by numbers • 300 – number of suppliers who have actually made a sale on G-Cloud • 437 – number of customers who have bought on G-Cloud • £16,725 – average total sales per SME on G-Cloud • 38 - only 38 out of nearly 300 UK councils and local authorities have been involved in procurement using G-Cloud • 76% - of local authorities and councils have no knowledge of what the G-Cloud framework can be used for
  • 17. And for Eduserv • £1,283,420 - sales via G-Cloud (to end of March 2014) • £1,199,419 – of which is to DfE ! • 3rd - our G-Cloud ranking, in terms of IaaS sales over last 6 months (behind Skyscape and ComputaCenter)
  • 18. Conclusion - G-Cloud successes • Consistent growth in sales • Improved competition • More opportunity for SMEs • Positive impact on supplier behaviour • Flagship individuals have been quite effective at promoting G-Cloud (Chris Chant, Denise McDonagh, Liam Maxwell, …)
  • 19. But… • Concern that move of G-Cloud into GDS will lower its profile • G-Cloud sales represent ~1% of overall government spend on ICT • Claims around cost savings don’t seem overly convincing in context of cloud vs not cloud • Impact on buyer behaviour minimal • Limited in-roads into wider public sector • Little progress in encouraging ‘cloud’ mentality in buyer community
  • 20. And, so far… • CloudStore has had some usability issues • Attempts to ‘compare on price’ largely failed (at the CloudStore level) • Now being re-engineered as new, bigger ‘Digital Marketplace’ (which will include additional frameworks) • Not yet clear whether this will be an improvement