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Central government demand dominates G-Cloud sales

News from our media partner Event Centre UK

UK Central government organisations are responsible for over three quarters of G-Cloud purchases on a value basis, with total sales through the framework since its launch reaching £345.6m as of October 2014. According to the latest Cabinet Office figures, small and medium-sized enterprises (SMEs) have accounted for £184m worth of services sold though G-Cloud by the end of last month, amounting to 53.2% of all sales in terms of value. Large enterprises were responsible for the remaining £162m of public sector spending through the framework.

Of buyers using G-Cloud, 79.5% of purchases - amounting to £275m - were made through central government organisations, with local government acquiring £20.8m worth of services - some 6% of total framework spend. The wider public sector has meanwhile bought £47.1m of G-Cloud services, a 13.6% share of all sales made through the service. In terms of monthly sales, overall spending was found to have fallen to £26.4m by October 2014, compared to £30.7m of purchases recorded the previous month. Of the sales figures recorded last month, £14.4m was spent on services from large enterprises, with SMEs accounting for the remaining £12m of purchases made. Notable purchases made through the framework last month included the £91,520-valued acquisition of website redevelopment services by Peterborough City Council and Bristol City Council making 38 separate G-Cloud acquisitions.

The Cabinet Office has also updated its sales data for the Digital Services Framework, which is used to commission digital expertise and services, with the total value of call-offs standing at £13.6m by October 2014.

SMEs, defined by government as organisations with 250 employees or less and an annual turnover not exceeding €50m ( £39.5m ) or a fiscal balance sheet over €43m ( £34m ), have been identified as an important part of the current government's strategy to overhaul IT procurement. The coalition has committed itself to cut the number of agreements signed with larger suppliers in favour of shorter-term contracts with SMEs.

The publication of October's figures comes as the Cabinet Office continues with its work to launch a single procurement tool known as the Digital Marketplace, which will combine both G-Cloud and the Digital Services Framework (DSF) when fully operational. With G-Cloud already hosted on the framework, the Digital Services Store (DSS) is expected to be shifted onto the Digital Marketplace by March next year.

The Think Cloud Vendors event in London, 9th December will address issues regarding public procurement and the G-Cloud. PICSE will be attending the event.