G Cloud Uk Meetup
Ivan Harris, Eduserv - G-Cloud: The Value-Commodity
Paradox?
G-Cloud:
The Value-Commodity Paradox?
G-Cloud Meet Up, London
Ivan Harris, Business Manager - Cloud Services
2nd October 2...
IT for public good
Commercial in Confidence
Copyright Eduserv 2013
All Rights Reserved
Value vs. Commodity
Co-created
Valu...
IT for public good
Commercial in Confidence
Copyright Eduserv 2013
All Rights Reserved
It’s a Matter of Trust!
• Purchaser...
IT for public good
Commercial in Confidence
Copyright Eduserv 2013
All Rights Reserved
CloudStore and SME Spending Trends
...
IT for public good
Commercial in Confidence
Copyright Eduserv 2013
All Rights Reserved
Summary
• CloudStore and SME spend ...
Thank you!
Ivan Harris
ivan.harris@eduserv.org.uk
(07925) 224284
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Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?

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Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?

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Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?

  1. 1. G Cloud Uk Meetup Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?
  2. 2. G-Cloud: The Value-Commodity Paradox? G-Cloud Meet Up, London Ivan Harris, Business Manager - Cloud Services 2nd October 2013
  3. 3. IT for public good Commercial in Confidence Copyright Eduserv 2013 All Rights Reserved Value vs. Commodity Co-created Value Solution Offer Component Commoditisation Value G-Cloud Needs • More commodity solutions • Flexibility and freedom • Ready and easy to use • Low cost • Competitive marketplace • 50% cloud-based services / 50% SMEs supply target G-Cloud Strategy • 36%: SME scale and capacity • 29%: Nervous about working with new suppliers • 32%: Difficult to split services into the CloudStore constituents • 24%: Lack of trust and relationships with suppliers Eduserv Civil Servant Survey
  4. 4. IT for public good Commercial in Confidence Copyright Eduserv 2013 All Rights Reserved It’s a Matter of Trust! • Purchasers need the trusted advice of expert suppliers to create value- added solutions • Suppliers need to understand the purchaser’s business drivers and requirements • Business trust is built on: – Shared values – Predictability – Success – Mutual benefit • Trust requires relationship building • Agile delivery requires trust • There’s no need to sacrifice value! • A success story… Co-created Value Solution Offer Component Co-created Value Solution Offer Component Plan A Plan B $$$
  5. 5. IT for public good Commercial in Confidence Copyright Eduserv 2013 All Rights Reserved CloudStore and SME Spending Trends Lot Mar 2013 Aug 2013 1 (IaaS) 0.6 (3.4%) 1.3 (3.5%) 2 (Paas) 0.3 (1.6%) 0.4 (1.1%) 3 (SaaS) 5.1 (28.0%) 7.8 (20.7%) 4 (Svcs) 12.2 (67.0%) 28.0 (74.7%) Total Value 18.2 37.5 Transactions Mar 2013 Aug 2013 Transactions 909 2080 (+129%) Average Value £20.2K £18K (-11%) Num Customers 159 227 (+43%) Num Suppliers 108 151 (+40%)G-Cloud III May 2013 G-Cloud I Feb 2012 G-Cloud II Oct 2012 G-Cloud 4 Nov 2013? • By 2015, 50% of new central government IT spend to be on cloud-based services and 50% to SMEs • Overall government SME spend has increased from 6.5% in 2009/10 to 10.5% in 2012/13 • £11.3Bn public sector SITS market, £10.4Bn to top 20 providers • 2011/12 to 2012/13 SME spend increase: Direct £4.4Bn to £4.5Bn, Indirect £2.9Bn to £4.0Bn • £11.3M of CloudStore spend in year 1 versus £6.5Bn of Central Government spend (~0.2%) • Data shows exponential growth in CloudStore purchases
  6. 6. IT for public good Commercial in Confidence Copyright Eduserv 2013 All Rights Reserved Summary • CloudStore and SME spend are trending in the right direction • Combine the ease of use and cost savings of CloudStore with relationships • Blend large SIs with SMEs for expertise, innovation and cost savings • Continue to advocate large SI/SME coopertition • Find SMEs who can deliver co- created value directly ValueTrustCommodity
  7. 7. Thank you! Ivan Harris ivan.harris@eduserv.org.uk (07925) 224284

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