Part 6: The Future of G-Cloud 8 and beyond…
The final blog of our mini-series takes an exciting, informed look into the crystal ball. In #5 I mentioned how minor tender changes could add huge value to the UK & Europe.
In the final blog of our mini series on G-Cloud we take an informed and exciting look into the crystal ball. In my last blog (#5) I mentioned a discussion in February over brunch on how minor changes to the structure of the G-Cloud tender could create a ridiculous amount of growth and value to the UK & Europe.
I also mentioned I was distinctly under qualified to discuss this having only scraped a “C” Grade GCE in economics at school. So I asked someone eminently more experienced and qualified to outline what could happen opening up the framework to all EU28 members. Step forward Mr Stephen Allott, sometime SME Crown Rep, G-Cloud Growth Strategist for the Cabinet Office and genuine expert when it comes to rapidly scaling software companies.
My vision – a Digital Single Market for G-CLOUD across the EU 28
By Stephen Allott
Sometime Crown Representative for SME, Cabinet Office
Stephen AllottPebble, Chairman
“If David Cameron and his staff really look at the numbers, the Prime Minister could confidently walk to a podium and announce that, with the expansion of the G-Cloud Digital Marketplace to all EU28 Member States, the United Kingdom has single-handedly delivered an additional 7% GDP growth to the EU which translates to over trillion pounds sterling by 2025."
A simple OJEU notice wording change would enable the G-Cloud to be compliant by default with all European Union 28 Member States’ procurement regulations. Any public sector buyer in the EU could then buy transparently priced cloud services in minutes not months. All Governments are building Digital by Default and would be able to find the components they need in the G-Cloud. The benefits would be highly significant.
- Accelerating adoption of cloud is good for the economy generally.
- The G-Cloud delivers superior value for money to the public sector
- G-Cloud suppliers will benefit from more customers, more scale and a launch pad for global leadership.
CLOUD BENEFITS THE ECONOMY
Research shows that adoption of modern cloud technology will improve the general economy substantially; see this excellent IDC report commissioned by the EU.
The study found that, from 2015 to 2020, cloud computing could add a cumulative total of €449bn to the EU28 GDP. Between 2015 and 2020 approx. 303,000 new businesses will be created, particularly SMEs, thanks to the availability and adoption of cloud-based computing. Moreover, 1.6 million jobs should be created overall from 2008 to 2020, of which almost 1 million jobs will be created during 2015-2020. The total value of the cloud market for the EU in 2013 was estimated at €9.5bn, less than 3% of the overall IT budget of the public and private sector in the EU. This value is expected to grow to €17.2bn by 2015 and to €44.8bn by 2020, i.e. almost five times the market size in 2013 and over 10% of the forecasted IT budget in 2020.
G-CLOUD DELIVERS SUPERIOR VALUE FOR MONEY TO PUBLIC SECTOR BUYERS
GDS Digital Marketplace in-house research of public sector buyers shows they typically get 20% cheaper prices on G-Cloud. 79% of G-Cloud spend has been on Lot 4, which is largely contingent labour. The McKinsey study on Work Intermediation Platforms (using web sites to buy contingent labour) found that in the private sector buyers got 7% better quality resources and 4% cheaper resourses when buying IT contractors. While cost and quality are better, time to purchase is better too. Typically purchases are made in minutes or days not months.
So, not only will cloud drive the economy, buying cloud on a digital marketplace through a G-Cloud style framework will deliver superior value for money to the public sector.
G-CLOUD SUPPLIERS CAN ACCESS THE WORLD’S LARGEST PUBLIC SECTOR IT MARKET IF G-CLOUD GOES EU 28.
Some 2,300 suppliers are registered on G-Cloud. Whilst the UK public sector IT market is some £17 billion (Kable); the EU 28 public sector IT market is much larger and probably of the order of £100 billion.
Going EU 28 will give suppliers a step change in scale and domain expertise, equipping them to be globally competitive, creating employment in their home countries and creating shareholder value on a large scale.
Finally, policy makers will welcome this contribution to the Digital Single Market.
Microsoft say that the ripple effect of an EU28 G-Cloud would be to expand the entire economy immediately. The UK would be directly responsible for a 2% GDP expansion in the entire EU if it can expand GC8 and then deliver cloud services sufficient to enable research, government and educational institutions to work open data, bid data and scientific computing projects.
Thank you very much Stephen. This is an amazing and tremendously exciting piece of work.
So there it’s is. All the UK government needs to do is add each countries contracting authorities to the notice to bring a seismic change in the Digital Economy. I suppose the question now is do they have the “cohones”?
Is the supplier market ready for this? Do you as a cloud supplier want to expand into Europe? Are there too many issues at play at home to sort first? Please do comment via social media (twitter &linkedin).
If you are a tech supplier or consultancy that is interested in being part of this wonderful revolution please do give us a call on 01273 974414 for an informal chat. We have lots of advice & information to share.