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G-Cloud spending on SMBs tops £40m with large enterprises left in the lurch

UK government departments are more likely to opt for small and medium sized businesses [SMBs] when looking to procure cloud services offered as part of the government’s G-Cloud program.

Related: G-Cloud suppliers pen letter of advice to government

The latest set of data published as part of G-Cloud’s dashboard showed that spending with SMBs remained on a par with large enterprises in the first half of 2013 but from August to November 2013 SMBs led by up to £2.3 million in every month.

“What the figures are showing is good news for SMBs, not least if you thing about the landscape two years ago before the launch of G-Cloud,” Nicky Stewart, commercial director at Skyscape Cloud Services, told Cloud Pro.

Over the lifetime of the G-Cloud project, SMBs have managed to maintain a strong lead over large enterprises and for the 11 months to November 2013, SMBs accounted for over half of the £78 million total spent through the service with a total of £43 million.

Central government has spent the most through G-Cloud to date with £57 million of the £78 million total coming from them and the group classified as ‘other wide public sector’ spending £11 million and local government accounting for a mere £6.6 million.

The cloud services that can be bought are divided into four lots and most of the spending has so far been on specialist cloud services, which has seen been rising all year and ended seeing spending of £8.8 million in November 2013. The infrastructure-as-a-service [IaaS], software-as-a-service [SaaS], and platform-as-a-service [PaaS] sectors have all seen minimal spends so far with only SaaS seeing a spent of over £1 million in any one month.

Related: G-Cloud uptake low among UK councils and local authorities

“While there is a disproportionately large spend in Lot 4 [specialist cloud services] those departments that are spending heavily there will be buying in the other lots [IaaS, SaaS and PaaS] soon,” Stewart added.