2. Agenda
• Introduction & background
• G-Cloud overview
• How to buy - key stages
• Buying from G-Cloud – Organisational
Change
• Q&A
2
3. Where were [are] we?
• Tough economic landscape
• Stuck in large contracts 80% of Central Gov
ICT controlled by 6 companies
• High system and running costs
• Difficult to iterate / reuse
• Lack of real competition
delivering
better public
services for
less cost
reducing
waste and
project failure,
and
stimulating
economic
growth
creating a
common ICT
infrastructure
using ICT to
enable and
deliver change
strengthened
governance
3
4. G-Cloud vision
• Public Cloud First
• Commodity solutions
• Pay-as-you-go and
friction free – easy in
and easy out of
contracts
• Scale up, Scale down
• Change the way we use
IT
in order to move
government more
towards commodity
buying, a policy such as
Public Cloud First is an
essential tool to make
that happen
“
” Denise McDonagh
G-Cloud Director
4
5. £11m+ to
end of Feb
G-Cloud Programme: where are
we? Phase 1 complete: 1st anniversary;
open and competitive marketplace
460 suppliers and 3,200+ services
provide access to a much wider
choice
We‟ve made it a lot easier for buyers
We‟ve made it a lot easier for
suppliers; we‟re levelling the playing
field for SMEs
We‟re getting the message out;
we‟re changing the market for public
sector IT
Giii – expect to see many more
Our aim is to encourage
the adoption of cloud-
based services across the
Public Sector
Sales
SME
Vol
SME
Sales
80% vol
of orders
70% of
spend
6. G-Cloud:
the benefits
• No OJEUs or long procurements necessary
• Compliant, self-service online CloudStoreEasy to buy
• Services, prices & commercial terms all online
• Driving competition – open marketplaceTransparency
• Elastic pay-as-you-go, up to 90% savings
• No need to spend £m‟s to keep the “lights on”
Significant
savings
• Reducing deployment time
• Ability to meet changing user needs
Agile &
Responsive 6
7. CloudStore:
a few principles
• Online Catalogue
• Cloud based services only
– Either: Cloud service
– Or: Cloud supporting service
• Commodity only
• Services fixed at the point of tender
• Non-negotiable terms and contract
• No prime contracting between G-Cloud
7
8. G-Cloud Frameworks
G-Cloud framework OJEU Commencement Close
Gi 18/10/11 14/02/12 13/11/12 – Closed
Gii 23/05/12 26/10/12 27/10/13
Giii 11/01/13 April 2013 April 2014
8
Service across 4 Lots:
Infrastructure as a Service
(IaaS)
1
2
3
Platform as a Service (PaaS)
Software as a Service (SaaS)
Specialist Cloud Services (SCS)4
Gii Features:
• Framework 12 months
• Framework value up to
£100m
• Call offs up to 24 months
9. Contractual Precedence - layer cake
Between
supplier
& GPS
Between
supplier
& buyer
G-Cloud Framework – Schedule 1
Call-Off Agreement – Schedule 2
Order Form
Supplier‟s Terms and
Conditions
As set out in the Framework Schedule 1
9
11. • Internal resources and
procedures
• High level requirements
• Business Case
• G-Cloud website
• GPS website
• Search criteria
• Evaluation model
• G-Cloud website
• GPS website
• G-Cloud website
• GPS website
• Call off agreement and
selection guidance
• Service documentation
• G-Cloud website
• GPS website
• Framework Agreement
• Order Form
• Funds
• Review procurement
approaches
• Identify high level
requirements
• Review general market
to help with search
terms or potential
companies
• Check against your
existing processes –
make procurement
aware!
• Use search box
• Cast search wide then
refine based on return
• Try multiple words or
phrases & use
advanced search to cut
down list
• Collaborate with others
– IT, Procurement, IA,
Projects & Programmes
• Add services that
warrant detailed review
• Build/review selection
criteria
• Review the description
• Review the Service
Definition;
Ts&Cs, additional
documents; web site
materials
• Comparing against
requirements & against
selection criteria
• Develop evaluation
model
• Weighting & scoring
• Additional information &
price confirmations
• Presentations;
Workshops
• Trial products
• Reference sites
• Company checks
• Accreditation validation
• Either Price or MEAT
• G-Cloud website
• GPS website
• Evaluation model
• Service documentation
• Notify Buy or Not Buy
• Provide reasons for Not
Buy
• Prepare Call off
F/W Agreement – info
Call-Off Contract
Order form
Supplier Ts&Cs/Service
Definition
• Voluntary notification
(MEAT)
StepsActivityResources
Buying: process overview
Prepare
Search &
Long List
Short List Select Award
11
12. Process:
12
G-Cloud is part of a new way of how we
commission and use IT
It might mean a radical new way of thinking
about your requirements
You need to focus on the key features of your
service and user needs
OBJECTIVE
Think Cloud from the outset!
Understand your essential minimum
service needs and features
HOW?
• Develop high-level requirements
and understand the type of service
you need
• Work with commercial to develop
procurement approach
• Follow your procedures and
processes to obtain approvals
• Determine your budget!
• Find out what else the market
might be able to offer
Prepare
13. Process:
13
Use the CloudStore to search
Search &
Long List
OBJECTIVE
Build a Long List by searching for
candidate services that could provide
a best-fit to your essential minimum
requirements – not a 100% fit
HOW?
Define a list of key search terms that
correspond with your
requirements, e.g.
“hosting”, “compute”, “CRM”
Use the Advanced Search to try
different combinations of search
terms to narrow down the list, making
a note of the candidates that warrant
a more detailed review
Collaborate with others –
IT, Procurement, IA, Project &
Recap:
1. Search for candidate services
2. Looking for a “best-fit” to minimum
requirements
3. Keep an audit trail
4. Involve all stakeholders in the process
5. Don‟t be afraid to ask for help!
14. Process:
14
Review each service and documentationOBJECTIVE
Define a Short List of candidate
services that could provide a best-fit
for your essential minimum
requirements, within the available
budget
HOW?
Review the services in detail,
including:
• Service Definitions;
• T&Cs, additional documents;
• Website materials
Compare the details against
requirements & your high level
selection criteria
Short List
15. Process:
15
Congratulations you have found a
service that will best meet your
requirements at the best value.
If you want to buy it (you don‟t have
to of course), you now have to do
two things:
- buy the service and;
- „not buy‟ the rest of the Short List
OBJECTIVE
Follow the selection process to find a
best-fit candidate, against both
functional, non-functional, commercial
and budget profiles
HOW?
• Evaluation process: define criteria
and scoring (keep an audit trail)
• Presentations
• Workshops
• Clarification on information & price
• Check reference sites, customers
• Try-before-you-buy
• Company checks
• Either Price or MEAT
Select
MEAT
• Whole life cost, cost effectiveness
• Technical merit & functional fit
• After sales service management
• Non-functional characteristics
16. Process:
16
OBJECTIVE
Complete your purchase!
HOW?
• Notify Buy or Not Buy - letter
• Provide reasons for Not Buy (if
using MEAT)
• Prepare Call-off
• Framework Agreement – for info
• Order form
• Call-off Agreement
• Agree on length of Call-off
• Supplier T&Cs/Service Definition
• Voluntary notification period
Award
16
GovernmentProcurementService
“The Authority”
Supplier “ContractingBody” Customer
Framework
Agreement
Call-offcontract
Guidance
18. Security Accreditation
18
• The key aim of G-Cloud accreditation is to „do it once, do it
well, and re-use.‟ For this reason it will be carried out by Pan
Government Accreditors (PGA) through Public Sector
Accreditation Board (PSAB) governance that supports the
trust model as attended by risk managers across the public
sector
• Services for accreditation are managed within monthly
capacity prioritised based on customer demand and other
factors.
• For detailed information about G-Cloud accreditation, please
refer to our IA guidance: G-Cloud-Services-IA-Requirements-
19. Security Accreditation
19
IL1/2 or BIL11x/22x
IL3 or BIL33x and above
• No Pan-Government Accreditation required
• Based on good commercial standards, centred around an
ISO27001 certification
• Based on HMG Information Standard 1 + 2. CLAS consultant
recommended (not mandated)
IL0
There is a review of the current Government Classification Policy
underway and this is to be published shortly
22. We need to achieve more…
Raise awareness
• Champion the Cloud, obtain commitment from top-down, hand-hold
• Provide tools and guidance for business users, benchmark benefits
Deliver new CloudStore
• Improve the quality of information, search, usability
• Need to make it real, more case studies, knowledge base
Challenge local issues
“red tape” and skills gap
• Internal processes cited as common barriers
• Lack of appropriate in-house skills, i.e. ICT or Service Integration
Address security and
management concerns
• Build confidence in public cloud services
• More complex management – address concerns and provide models
Clarity on policy and
standards
• Make Public Cloud First central, to drive a change in thinking
• Drive open standards, ensure these enable, not undermine take-up
Improve our risk
management skills
• Develop in-house skills and embrace more direct control as positive
• Take a pragmatic approach: what are the changes in risk profiles?
22
There are a number of reasons why Cloud is appealing and why G-Cloud in particular came aboutCuts in spending & budgetsThe value being achieved through large contracts and the inability to change easilyMissing out on the skills and offerings from a huge section of the ICT landscapeMultiple organisations undertaking the same activities – wasted resourceNot focusing on the core businessCompetition lacking; and not being treated as a single customer
We needed to find a better wayG-Cloud – started by visionaries – Chris Chant, Tim Hanley, Denise McDonagh…We are doing out best to make this a successThis is not just about transitioning IT; it’s about transitioning the way you think and the way you run your organisation to meet the challenges for increased mobility, reduced budgets, etc
Driving the shift from “custom” to “commodity”Working to create a competitive marketplace for commodity servicesPropagation: nurturing the buyer community to move to buying services, through G-CloudBuilding Peer Communities to support and drive this shiftBeing transparent: open, honest and iterative approach, using webinars, blogging and Twitter to get the message out
No software – licenses or client/server softwareNo hardware – unless as part of a commodity service – i.e. encryption service that includes a tokenFixed at Tender – service, price model, Ts&CsSuppliers can lower their price on the CloudStore but it must be for all Buyers – no price negotiation
Precedence, negotiating terms and conditions
Pan government accreditation has goal of accredit once and re-use;Will cover roughly 80% of what needs to be done – still your responsibility to check the scope of the accreditation; You must cover with your security, information risk officers & management that the risk appetite is satisfied for the service you purchaseYou can find the badges in the store – there are actually 14 services accredited to date with about 100 currently in the pipeline.
Governance – Multiple governance touchpoints within your organisation – what are they, who with, do they need to change for G-Cloud practices? Assure each party that you are aligning with them, not bypassingLoss of Control – People buying without talking to IT/IA, or procurement; or even Prj&Prgs; Changes to apps/solutions outside of your control – what does it mean to you? How to you mitigate it? Policy, communications, processes?Legal – do you have the skills / knowledge to evaluate Ts&Cs – how important is it for the different types of projects (big medium, small)? When do you need to evaluate them? (Functionality first then Ts&Cs – my opinion)Processes – influence existing, develop new, remove un-neededContract Mgmt & Service Mgmt – do you have the expertise & know how to manage effectively; what changes are you going to make to align with future strategy? Will you need to replace your helpdesk system with one that is easily interfaced through open standards?Responsibility – Who is assigned responsibility for making sure the governance is adhered to, the service mgmt is considered, the contracts are managed effectively, the G-Cloud is continually providing new services so who keeps the procurement notes and retests the market frequently?Skills – You may need to check the capabilities & skills of the people doing the procurement; & running/managing Cloud services;
Cross-team alignment – synchronise your processes & activities – ensure a common understanding – Information Assurance (IA); Information Technology (IT) & Architecture (Arch);Processes – they may need tweaking or new ones addedGovernance – ensure your processes meet the governance needs of all partiesCommunications – you will have to get the message out to all the specialities and to the business if you are embracing more innovative, agile & responsive procurement practicesSearching – you may need a team of people from the the different specialties to make the long listing and short listing easier
