The coalition programme for government has highlighted a number of areas on which we will now have to focus and the promotion of small businesses is one such area. Supplier lock-in is an issue, and in many cases we have locked ourselves into long contracts and in turn suppliers try to make themselves indispensable , right through the application stack. A number are in this position but I hope to cover how the developing concept of the Government cloud and applications store will address this later in my keynote. The government is clear, it wishes to promote small business procurement with the aspiration that some 25% of contracts should be awarded to SMEs . One of the main mechanisms through which this will be accomplished is to publish tenders online so that companies who wish to bid for work are aware of opportunities . However, it is important to realise that SMEs are limited to the risk associated with the scale and size of some of the main contracts. But it is also equally important to note that SMEs are powerhouses of innovation, they offer us flexibility, agility and prices that their larger System Integrator colleagues find hard to deliver.
Not only are we tasked with the challenge of ensuring 25% of contracts are awarded but it is now policy to be transparent and publish government contracts online so that the business community and citizens can see where the work is going and at what cost to the taxpayer.
We are also clearly committed to levelling the playing field for the use of open source software ; however, european union procurement law does not permit us to specify which product we buy. We have to specify procurements in terms of requirements that permit competition. As I said before, supplier lock-in is an issue and specifically where large system integrators deliver proprietary solutions . We do operate in an environment where open source is used. We do use Linux at server level in a number of organisations, Solaris is a key feature of the N3 spine and there is growing use of other open source software such as Wordpress and Drupal. Often our suppliers misunderstand our appetite for the use of open source and then it becomes a matter of education, where we need to ensure that suppliers can include open source in proposals but we also need to ensure that what is procured passes the value for money test and is supportable . So the first step is the ensure that open source is given a chance to compete, that we require proposals to really consider open soucre as an option and we use open standards in our requirements specifications so we can move towards a different environment designed to stimulate an SME economy base. I believe that one of the biggest opportunities for the use of open source is in desktop productivity but we will need to do a lot of work over the next 3 years to get there. We have over 600,000 licenses for desktop productivity software based on one specific desktop productivity tool. So as government resizes we have the opportunity to re-use assets which we already own without lock-in of new licenses. In addition, work is underway to define how we can reduce the size of components procured in the traditionally larger arenas into sub £100m packages which are easier to manage and represent lower levels of risk.
If you would like to see what we are currently tasked with delivering then it is worth taking a look at the Cabinet office’s Structural reform plan. Our key objective under the ICT Strategy area is to reduce the overall cost structure of the delivery of ICT while at the same time ensuring that we deliver and support new technologies that increase citizen involvement, transparency and localisation. We are working with colleagues in the Digital Delivery Unit to ensure that our work complements the review of Directgov currently underway by Martha Lane Fox and how Government can achieve further efficiencies through online service delivery.
Our desire is to come up with a new ICT strategy designed to simplify, standardise and automate . There is nothing radical in these 3 steps just good sound practice.
Five Worlds – start at Testing World and explain.
Chris Price (for Chris Chant)-Public Sector ICT Landscape & G-cloud
Public Sector ICT Landscape G-Cloud Programme Andy Tait Deputy Director G-Cloud Programme
Why do we need a new ICT strategy? and what is it? <ul><li>New technologies </li></ul><ul><li>Economic climate </li></ul><ul><li>Environmental responsibility </li></ul>
New Administration Policy <ul><li>“ We will promote small business procurement, in particular by introducing an aspiration that 25% of government contracts should be awarded to small and medium-sized businesses and publishing government tenders in full online and free of charge.” </li></ul>The Coalition: our programme for government
New Administration Policy <ul><li>“ We will take steps to open up government procurement and reduce costs; and we will publish government ICT contracts online.” </li></ul>The Coalition: our programme for government
New Administration Policy <ul><li>“ We will create a level playing field for open-source software and enable large ICT projects to be split into smaller £100m components.” </li></ul>The Coalition: our programme for government
Cabinet Office Structural Reform Plan <ul><li>‘ Reduce the cost structure of information and communications technology in central government, while supporting technologies which increase citizen involvement, transparency and localisation’ </li></ul>(3. ICT Strategy)
What does the New Administration Policy mean for Government ICT? <ul><li>Two fold plan:- </li></ul><ul><li>Short term: ICT can contribute to budget deficit savings </li></ul><ul><li>Medium and Long term: ICT can offer new ways of saving money, streamlining/improving current services and use of common infrastructure </li></ul>
What are we doing? <ul><li>Writing a new ICT Strategy which will reflect our desire to: </li></ul><ul><ul><ul><li>Simplify </li></ul></ul></ul><ul><ul><ul><li>Standardise </li></ul></ul></ul><ul><ul><ul><li>Automate </li></ul></ul></ul>
What is today’s ICT Landscape – by numbers <ul><li>200K+ servers across PS </li></ul><ul><li>10,000+ distinct applications </li></ul><ul><li>No aggregation of application demand </li></ul><ul><li>No data mobility between departments </li></ul><ul><li>130+ Data Centres in central Government </li></ul><ul><li>£16.9 bn approximate ICT spend per annum. </li></ul><ul><li>Potential “G-Cloud” benefit 30% of annual costs. </li></ul><ul><li>Under or over software licensing at a departmental level </li></ul><ul><li>Thousands of DC, and comms rooms across public sector </li></ul><ul><li>Private sector achieves 60% cost reduction through Cloud </li></ul><ul><li>90,000 servers within central government running at <10% utilisation </li></ul>
How does G-Cloud fit in? “ The G-Cloud brand provides confidence in ICT services you can trust – reliability and security, value for money.” “ Data Centre Consolidation : Delivering Public Sector ICT services from the optimum number of high performing, energy-efficient, resilient, and cost-effective” “ The Application Store for Government- the online marketplace for Public Sector ICT Services.”
Goals for the Programme <ul><li>Reduce ICT costs, supplier lock-in, time from idea to service and carbon footprint </li></ul><ul><li>Create open, vibrant competitive marketplace </li></ul><ul><li>These will be achieved through: </li></ul><ul><li>Deployment across the whole of Public Sector </li></ul><ul><li>Sharing and re-use of all relevant Public Sector ICT services across organisational boundaries </li></ul><ul><li>Driving standardisation and </li></ul><ul><li>simplification </li></ul>
The G-Cloud “ The G-Cloud brand provides confidence in services you can trust – reliability, security, value for money, contractual probity, adherence to standards and enables Government ICT Strategy.”
G-Cloud, isn’t one thing: It has five “worlds”: Hosting, Testing, Sharing, Web, SME. Departments want and need different things so G-Cloud needs to offer them flexibility to make the offer compelling… “ Hosting world” My computer systems are fine, I just want to close my data centres and use yours. Give me economies of scale, security and growth, reduce my capex need “ Testing world” I don’t want to buy computers to test new systems, can I rent them from you? “ Shared world” ERP – HR/ Finance DirectGov Gateway & ID BusinessLink Shared App What can be shared, should be shared. Common shared systems for all too use. data.gov “ SME world” I want to use your G-Cloud to offer services to my non Government customers. UK tax growth, innovation “ Web world” Online/web services to employees/ citizens and business Apps