G-Cloud framework scores £ 1.5 billion in commercial benefits

g-cloud framework

The government’s Crown Commercial Services’ G-Cloud framework has improved cloud-based computing for public sector customers

Marking its 10th anniversary, the G-Cloud computing initiative has achieved £ 1.5 billion in commercial benefits for public sector customers, since 2012.

G-cloud 12 currently supports the purchase of cloud-based computing services such as hosting, software and cloud support.

Supporting the Government’s Cloud First policy, the G-Cloud agreement emboldens public sector organizations to evaluate and pursue cloud-based services, which are less costly than on-premises alternatives.

So far, over 5,000 suppliers offer more than 38,000 services to public sector organizations through this agreement.

Aiding public sector digital transformation

The G-Cloud framework allows public sector bodies to procure cloud services on short-term contracts through a Digital Marketplace in a more easy and hassle-free way.

They do this by encouraging suppliers to offer prices that are cheaper than commercial prices, and the agreement is commodity-based – implying that customers only pay for what they use.

Overall, the total cost of the agreement has gone from zero to £ 11.5 billion with small and medium-sized enterprises (SMEs) predominantly reaping the benefits of the framework – with over 90% of all suppliers listed on the G-Cloud framework being SMEs , they have won around £ 4 billion in public contracts.

The next iteration of this framework, G-Cloud 13, is going live later in 2022. It is expected that G-Cloud will help deliver around £ 200 million in commercial benefits this year alone.

What changes are being introduced in G-Cloud 13?

Crown Commercial Services have not only improved terms and conditions, with greater inclusion for the provision of day rate cloud support services, but also increased inclusion of the latest procurement policies, including prompt payment.

Additionally, they have introduced a fourth Lot for further competition for cloud support services for larger, more complex requirements.

Cabinet Office Minister Heather Wheeler said: “It often goes unnoticed but initiatives such as the setting up and implementation of the G-Cloud agreement are exactly the sort of innovation this government is seeking to embed across departments.

“I’m extremely proud of the work done by Crown Commercial Service to continuously find new ways in which government procurement can be made more efficient. I’m certain we’ll continue to see them carry on that important work. ”

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