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December 21, 2016

Total G-Cloud sales hit £1.58bn

Central government continues to be the dominant spender.

By James Nunns

Sales made through the government’s G-Cloud framework continue to rise but they continue to be dominated by central government.

The framework, which is designed to make it easy for public sector bodies in the UK to acquire cloud services, reported total sales in October of £1.58bn, an increase of £190m from July.

The breakdown of this reveals that 55% of the total by value and 64% by volume was with SMEs, that equals £875m while £702m was with larger enterprises.

Spending between SMEs and large enterprises saw a widening gap appear in October as SMEs had sales totalling £27.5m while large enterprises only spent £10.6m.

While sales continue to remain largely with SME’s they also continue to be predominantly with central government, rather than other areas of the public sector.

Central government now accounts for 74% of sales made on G-Cloud, the wider public sector counts for just 26%.

That means that £1.2bn of sales to date have been through central government, £274m through the wider public sector, local government spending at £84.9m, not-for-profits at £12.8m and ‘others’ account for £2.31m.

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While sales clearly continue to grow they are skewed somewhat by the fact that the majority of spending is being done by central government. Central government has a mandatory cloud-first policy.

g-cloudThe framework has attracted all kinds of cloud providers to its ranks such as FinancialForce. The company recently announced its first successes with the National Audit Office and the Financial Conduct Authority, which have spent more than a combined £620,000 on the ERP solution.

According to the company, the NAO started using it in February while the FCA is said to have begun invoicing in July.

The FCA is said to be using FinancialForce PSA in its supervision division in order to help increase project visibility and to help standardise work across the department.

Jeremy Roche, president and CEO of FinancialForce said: “Many of the common problems we see from customers who come to us to help them transform their businesses we also see from UK public sector organisations.

“It is imperative that these organisations are spending resources in the most efficient way possible and both switching technology systems and moving more closely to a single platform strategy is a key part of how they can achieve this.”

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