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September 27, 2016

G-Cloud sales reach £1.39bn with central government the biggest spender

Local government has spent just £73m since the platform’s launch.

By Hannah Williams

A recent update to the UK Government’s G-Cloud dashboard has revealed that the platform had reached £1.39bn in total sales as of July this year.

Overall G-Cloud sales were £62.2m in July, which is slightly less than the £65.5m the platform earned in June.

Sales made to small and medium-sized enterprises (SMEs) accounted for £753m of the total amount, with the rest £640m sales coming from to large enterprises.

The latest figures indicate that the government’s plan to utilise G-Cloud to make sure that more IT investment goes to SMEs had better outcomes.

However, 90% of suppliers on the platform are classed as SMEs, demonstrating that most of the buyers are still interested in large, traditional suppliers.

The central government has to date made majority of the purchases, with £1.06bn of total spending on G-Cloud.

This indicates that those who make the buying decisions may still be more comfortable using the large companies they are familiar with.

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Meanwhile, local government is still lagging behind with £73m of total sales made on G-Cloud. Not-for-profits are at £11.2m and the wider public sector, covering areas like the emergency services, accounted for £245m.

Last month, the first blockchain platform-as-a-service on G-Cloud was awarded to Credits for the supply of distributed ledger technology.

The G-Cloud features a series of framework agreements with suppliers, from which public sector organisations can buy services without requiring to run a full tender or competition procurement process.

It also includes an online store, which enables public sector bodies to search for services that are covered by the G-Cloud frameworks.


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