G-Cloud Sales Soar in the UK
G-cloud is making a big impact in the UK, as is evident from the recent sales figures released by the company. For the first time since its inception in 2012, G-cloud has passed the £1.5 billion mark, and much of it comes from its small and medium enterprise (SME) customers. According to the release £875 million came from SMEs, while £702 million came from large enterprises.
These numbers, in many ways, reflect the strength of the British economy, and its ability to stand firm despite Brexit. Also, it shows the growing presence of G-cloud, and the cloud industry at large in the UK. The rate of adoption of technology, especially cloud, is fairly high in the Western world, and these numbers are yet another indicator of it.
Along with the private enterprise, the Central Government also has adopted cloud in a big way. In fact, the central government uses G-cloud more than any other area of public sector. The percentage of sales made through the central government on G-cloud is a whopping 74 percent, while the remaining sectors account for a mere 26 percent. Through this large spending, the central government has set the right example for private and public sectors in the UK.
Much of this spending comes through the Digital Outcomes and Specialists (DOS) agreements that cam into being in April of this year to replace the Digital Services framework (DSF) that was in place since 2012. The new agreement is wider and more encompassing than its predecessor, and it aims to ensure greater adoption of tech among UK governments and businesses. The next iteration of DOS is expected to be released in February 2017 by the Crown Commercial Service (CCS), and this iteration is likely to have the spending figures under the framework in the future. From a cloud perspective, this is good news, as the iteration’s budget for cloud is expected to increase to give a boost to the economy as a whole.
It is significant to note that AWS opened its new cloud data center in London to cater to the growing demands of its UK businesses. This also means that others like G-cloud and Microsoft are already taking steps or are in the process of doing it.
For G-cloud, though the sales numbers are impressive, it still has its task cut out. Local government spending is just short of £85 million, and this is abysmally low when compared to the potential. Local governments and other council services can tap into the power of cloud to improve their offering and streamline their operations, yet they are not willing to move forward. This is something that G-cloud should look into and address if they want to have a larger customer base. It’s best for the company to reach out to individual governments to see what is stopping them from using more cloud services, and how G-cloud can best address them.
In all, G-cloud has a firm grip on the market, but it still has a long way to go, especially in the public sector.