G-Cloud sales reach £150m, SMBs continue to dominate

G-Cloud spending has topped £150 million for the first time since its launch with small and medium sized businesses [SMBs] continuing to bag most of the money on offer through the procurement portal.

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Figures released by the government’s Digital Marketplace blog showed that by the end of March 2014 £154.6 million has been spent using the service since its inception.

60 per cent of the total sales by value and by volume have been procured by SMBs, and the procurement by central government continues to outstrip any other public sector body with 79 per cent of the total sales.

Spending on cloud services offered by SMBs has increased by 22.4 per cent over the course of the program whereas those offerings by larger suppliers have increase just 17.7 per cent.

The new figures also show that local authorities are finally starting to buy more services through G-Cloud with spending up 16.3 per cent to £9.6 million in March compared to February and local councils make up 6.2 per cent of the total amount spent.

Tony Singleton, the director of the digital commercial program at Government Digital Services, stated that firms can save an average of 50 per cent when buying through the framework and went on to outline a wide range of other benefits.

"Other benefits buyers have spoken about include greater transparency; flexibility; a simpler, clearer, faster way to buy and ultimately better value for the taxpayer – once the requirement has been defined, we have put a contract in place in three minutes!" he stated.

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The cloud industry is pushing for local authorities to be educated on how to use the G-Cloud cloud procurement service, as uptake among UK councils is still low with 87 per cent failing to purchase anything using the service.