MarketMeter Survey reflects growing confidence in G-Cloud

The latest Toplevel MarketMeter Survey indicates Government spend for 2013 will be higher than anticipated, revealing a greater confidence in the open market created by G-Cloud services. Delegates at the Think G-Cloud 2013 event in June were asked ‘How will G-Cloud sales this year compare to last year?’ The results show that government representatives were far more upbeat about the G-Cloud, with nearly 80 percent voting for between £40 million and in excess of £100 million compared to just 63 percent of suppliers, who remained cautious.

“These results suggest government departments are now sufficiently confident in the G-Cloud and its burgeoning range of services to invest but that optimism isn’t being reflected by the supplier community. The Cloudstore is now established and agencies have acclimatised to the concept of the Cloud. The message from central Government to ‘put cloud first’ and make savings by shifting to cloud computing services is clearly getting through but the ICT industry is taking a conservative view. We need to have the courage of our convictions and show our uncompromising support for this channel.”

Jane Roberts,?Toplevel's Strategy Director
Toplevel offers a range of GCloud Software-as-a-Service (SaaS) solutions which enable staff to assess and process applications, claims and returns more quickly and accurately. All services are based on Microsoft technology, including Toplevel Outreach, and are offered over the Cloudstore in partnership with Bramble.cc Ltd:
• e-Apply – improves the number and quality of applications and customer service.
• e-Appointment - self-service appointment booking.
• e-Claims - publishes secure interactive guided claims processes on the customer web site e.g. for staged payment or an entitlement claim.
• e-Returns - reduces bureaucracy and offers first class, secure customer service for statutory returns.
• e-Case Management - secure, configurable case management ideal for unique needs.
• e-Forms - customers can fill in forms online using any browser and return them electronically.
• e-Recruit – publishes and manage vacancies and collaborates with service departments.
• e-Course - enables 24x7 course booking via secure, easy to use web screens saving customers and staff time.

Government
Delegates were invited to cast their vote at Think G-Cloud 2013 in June and were able to view the survey results “live” on the Toplevel stand in perspex voting chambers. A clear majority of over half of the government respondents (58 percent) expected spend for the year to be in the mid-range of between £40-99 million. The remainder were equally divided, with 21 percent voting for the lower bracket of £0-40m and 21 percent for £100 million or over.

“The news that the G-Cloud has moved under the protective auspices of the Government Digital Services (GDS) unit may well have influenced opinion as this shows a clear commitment from central Government to this procurement initiative. Clearly Government intends to ensure the service is well supported both logistically and financially. Further afield, the European Commission has announced its intention to set up a European Cloud Partnership (ECP) which will no doubt replicate many of the successful elements of the G-Cloud, such as its stringent accreditation programme. The ECP plans to facilitate better public procurement of cloud services across the continent which may stimulate cross-border procurement. With such strong endorsement both at home and overseas, demand for accredited cloud services can only continue to rise.”

Suppliers
G-Cloud suppliers were more restrained in their estimates for annual spend, with 37 percent voting for between £0-40 million and 53 percent voting for £40-99 million. Only 10 percent of respondents felt spend would be in excess of £100 million. The conservative response may have been influenced by the delay of G-Cloud iii (Giii). Extensions to the tender submission time saw the deadline moved from February to March with the standstill beginning in April. Giii was originally due to go live at the end of March but launched in May but now has more than double the original number of suppliers (368 were added to the 340 existing to give a total of 708).

Actual spend to date
As part of G-Cloud’s commitment to transparency, G-Cloud Civil Service publish details of all public sector spend through the G-Cloud frameworks (Gi, Gii and Giii). Total Cloudstore sales for the fiscal year (March 2012 - March 2013) were £18.2 million, with a slow start ending in a strong March (£7 million) as large departments such as the Ministry of Justice and the Home Office placed orders. Sales then levelled out to a consistent April (£3.6 million) and May (£2.6 million) generating £6.2 million in total. Projected sales for the fiscal year (2013/14) at this conservative rate will be £37.2 million: more than double the amount spent during the whole of the last financial year. In Government circles, spend is expected to exceed this figure and may even snowball, spurred on by the ‘public cloud first' policy issued by the Cabinet Office back in March which mandates departments to use public cloud services where possible. GDS Programme Director, Denise McDonagh, said spend is expected to reach £120 million by 2014/15. Central government currently spends approximately £8 billion a year on ICT with the wider public sector spending £16 billion. The Cabinet Office intends to channel 50 percent of new spend through the G-Cloud by 2015.

“Confidence is growing in the G-Cloud procurement strategy and its ability to level the playing field. Government estimates state that 80 percent of the service providers on the Cloudstore portal are SMEs which are now able to compete with the larger systems integrators and multinationals which have traditionally dominated the field and grabbed the lion’s share. By ensuring service quality and security through the G-Cloud accreditation programme and improving the Cloudstore portal, a wider array of solutions are now available that compete on merit in an environment that fosters innovation. Both government and supplier can now reap the benefits of a truly open marketplace.