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July 29, 2014

G-Cloud spend breaks £200m barrier

But how much went to SMBs?

By Joe Curtis

Public sector bodies have now spent £217m on IT services via the G-Cloud, but only half of this has ended up with SMBs.

The Cabinet Office revealed the latest sales figures for G-Cloud yesterday, but only 53% – £116m – of that money went to the small IT suppliers the initiative is aimed at boosting.

Large enterprises scooped £101m of the total spend since the framework launched in March 2012, with the aim of making public sector IT contracts more competitive by opening them up to SMBs.

G-Cloud director Tony Singleton said he was delighted with the spend so far.

"In addition to the benefits being seen within the public sector, SMEs are letting us know that their businesses are continuously growing both in revenue and employees," he added in a blog post.

"Not only have these frameworks reduced the barriers of entry for working with government, but are delivering real growth to the economy."

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He said the latest figures, up from £191.5m in May, bring the average monthly spend via G-Cloud to around £20m.

However, Singleton also said the Government recognised the need to make G-Cloud more attractive to local government, which has criticised the framework for its short contract lengths and alleged lack of range in the services on offer.

Singleton wrote: "The biggest challenge over the next 12 months…is, without a doubt, getting the message further across both central government and the wider public sector about the truly transformational benefits that Cloud First can deliver."

He is set to start working with local government IT body Socitm next month to research how G-Cloud could be more beneficial to local authorities.

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