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G-Cloud spending tops £200m; SMBs continue to account for majority of sales

G-Cloud sales have topped the significant £200 million sales mark as small and medium sized businesses [SMBs] continue to reap the benefits of the UK government’s public sector cloud procurement programme.

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

A blog post from the Government Digital Service reports that sales reached £217 million earlier this week and SMBs accounted for some 53 per cent of all those sales with larger enterprises taking the other 47 per cent.

“SMEs are letting us know that their businesses are continuously growing both in revenue and employees,” wrote G-Cloud programme director Tony Singleton. “Not only have these frameworks reduced the barriers of entry for working with government, but are delivering real growth to the economy.”

The average monthly spend through the service is now about £20 million with central government accounting for 80 per cent of sales and the low number of sales made by local government remains a concern thus becoming one of the biggest challenges in the next year.

“I was asked at a Civil Service Live panel session what I saw as the biggest challenge over the next 12 months. This is, without a doubt, getting the message further across both central government and the wider public sector about the truly transformational benefits that Cloud First can deliver,” Singleton added.

Local government hasn’t been completely averse to G-Cloud and the Royal Borough of Windsor and Maidenhead, in particular, is one place that is openly embracing the cloud.

“We already know the Royal Borough of Windsor and Maidenhead will be the first UK local authority to move to an entirely cloud-based infrastructure, and spent just £100,000 setting it up,” Singleton said. “They are using a number of solutions, including those bought through the G-Cloud.

The Home Office is the biggest spender across the board with a total outlay of £31.6 million followed by the Ministry of Justice with £19.1 million. At a local government level, the London Borough of Hounslow tops the charts with a total spend of £2.6 million and the situation at that level is laid bare by the example of East Hampshire District Council that has spent a total of £225.

Related: Massive potential unfulfilled: What needs to be done to make G-Cloud work?

Cloud firms have already called for local authorities to be educated on how to use G-Cloud and Singleton’s next move is the key to encouraging local councils to use the service.