How The UK Government Trying To Save Money With The Cloud

How The UK Government Trying To Save Money With The Cloud

How The UK Government Trying To Save Money With The Cloud

The UK Government have been long-time proponents of the cloud. As a result of their great belief in the technology they introduced G-Cloud in 2012; the service aims to make procurement easier for public sector bodies in departments of the United Kingdom Government – with it being specifically focused on commodity information technology services that use cloud computing.

uk-govenment

Underlining the policy, the UK Government’s Cabinet Minister Francis Maude claimed that “Cloud services are quicker, cheaper and more competitive”. He also said some public service IT departments estimate that they can be 25% to 60% cheaper for their organisation than if they were using traditional long-term IT contracts.

Sadly for the UK, despite the government’s excellent initiative, the G-Cloud is not being effectively used. In the 2012-13 financial year, county councils spent nearly £440 million ($680 million) in total on IT services, including staffing costs, but just £385,000 of that went through the government’s G-Cloud framework.

The one of the worst performing regions, Kent, was also one of the biggest spenders on IT; they committed £38.5 million to IT services in 2012-13, but just £94,750 of that went through G-Cloud – a worryingly small percentage (0.24%). Remarkably, there are even regions where no money was spent on G-Cloud – Hampshire failed to spend any of their £38 million budget on the government service.

Research in the UK suggests that by sharing infrastructure costs and moving to the cloud, local regions could take 20 percent to 25 percent out of their total IT costs – meaning the level of waste is running into the millions.

G-Cloud cannot be considered a failure merely in terms of national savings. Since launch, the service has seen £175.5 million of sales made through the platform up to the end of March 2014, with 60% of those going to small and medium-sized businesses. According to the British Cabinet Office, it now boasts 1,518 suppliers offering about 17,000 services and is one of the most-accessed online government services. Where it can be considered less successful is in how widespread the adoption is. A greatly inflated 80 percent of total sales were made by central, not local, government, and £175.5 million represents a little over 0.25 percent of the total central government IT spending budget of £7 billion.

In their defence, local regions have shot back by saying while the G-Cloud offers a number of contract solutions, for some areas the framework is unable to deliver best value. They highlight the existing nature of their IT contracts, in which they have already outsourced IT management and would have to be recreate it at significant cost to make the G-Cloud the right solution for them.

Nonetheless, some of their critics say the regional governments are simply unwilling and insufficiently trained on how to make the switch. Other commenters are more practical in their criticisms, speculating that locally run data centres would close, and other efficiencies and automation may lead to job losses – outcomes that the local councils are unwilling to endorse as the UK economy starts to click into top gear for the first time in five years.

What do you think? Let us know in the comments below.

By Daniel Price

About Daniel Price

Daniel is a Manchester-born UK native who has abandoned cold and wet Northern Europe and currently lives on the Caribbean coast of Mexico. A former Financial Consultant, he now balances his time between writing articles for several industry-leading tech (CloudTweaks.com & MakeUseOf.com), sports, and travel sites and looking after his three dogs.

Find out more
View All Articles

Sorry, comments are closed for this post.

Comic
Using Cloud Technology In The Education Industry

Using Cloud Technology In The Education Industry

Education Tech and the Cloud Arguably one of society’s most important functions, teaching can still seem antiquated at times. Many schools still function similarly to how they did five or 10 years ago, which is surprising considering the amount of technical innovation we’ve seen in the past decade. Education is an industry ripe for innovation…

5% Of Companies Have Embraced The Digital Innovation Fostered By Cloud Computing

5% Of Companies Have Embraced The Digital Innovation Fostered By Cloud Computing

Embracing The Cloud We love the stories of big complacent industry leaders having their positions sledge hammered by nimble cloud-based competitors. Saleforce.com chews up Oracle’s CRM business. Airbnb has a bigger market cap than Marriott. Amazon crushes Walmart (and pretty much every other retailer). We say: “How could they have not seen this coming?” But, more…

What Futuristic Tech Will You See In Your Lifetime?

What Futuristic Tech Will You See In Your Lifetime?

Futuristic Tech The world and what people can do is increasingly being driven by technology. It has already shaped the world we live in, but over the next few decades it is set to shape the world in ways that we can barely imagine. There have already been some great leaps in IoT technology recently,…

The Lighter Side Of The Cloud – Hiding Spots

The Lighter Side Of The Cloud – Hiding Spots

By David Fletcher Please feel free to share our comics via social media networks such as Twitter, Facebook, LinkedIn, Instagram, Pinterest. Clear attribution (Twitter example: via@cloudtweaks) to our original comic sources is greatly appreciated.

Recent Articles - Posted by
Fintech Exploiting AI and Blockchain Technology

Fintech Exploiting AI and Blockchain Technology

AI and Blockchain Technology The field of artificial intelligence (AI) had progressed rapidly in the last ten years, though first recognized in the 1950s. From autonomous motor vehicles to digital personal assistants, the technology is making its way into a variety of industries, enabling better task automation, language processing, and data analytics. But more recently,…

Cloud-based GRC Intelligence Supports Better Business Performance

Cloud-based GRC Intelligence Supports Better Business Performance

Cloud-based GRC Intelligence All businesses need a strategy and processes for governance, risk and compliance (GRC). Many still view GRC activity as a burdensome ‘must-do,’ approaching it reactively and managing it with non-specialized tools. GRC is a necessary business endeavor but it can be elevated from a cost drain to a value-add activity. By integrating…

Multi-Cloud Integration Has Arrived

Multi-Cloud Integration Has Arrived

Multi-Cloud Integration Speed, flexibility, and innovation require multiple cloud services As businesses seek new paths to innovation, racing to market with new features and products, cloud services continue to grow in popularity. According to Gartner, 88% of total compute will be cloud-based by 2020, leaving just 12% on premise. Flexibility remains a key consideration, and…

Four Keys For Telecoms Competing In A Digital World

Four Keys For Telecoms Competing In A Digital World

Competing in a Digital World Telecoms, otherwise largely known as Communications Service Providers (CSPs), have traditionally made the lion’s share of their revenue from providing pipes and infrastructure. Now CSPs face increased competition, not so much from each other, but with digital service providers (DSPs) like Netflix, Google, Amazon, Facebook, and Apple, all of whom…

Why Security Practitioners Need To Apply The 80-20 Rules To Data Security

Why Security Practitioners Need To Apply The 80-20 Rules To Data Security

The 80-20 Rule For Security Practitioners  Everyday we learn about yet another egregious data security breach, exposure of customer data or misuse of data. It begs the question why in this 21st century, as a security industry we cannot seem to secure our most valuable data assets when technology has surpassed our expectations in other regards.…

Your Biggest Data Security Threat Could Be….

Your Biggest Data Security Threat Could Be….

Paying Attention To Data Security Your biggest data security threat could be sitting next to you… Data security is a big concern for businesses. The repercussions of a data security breach ranges from embarrassment, to costly lawsuits and clean-up jobs – particularly when confidential client information is involved. But although more and more businesses are…

Do Small Businesses Need Cloud Storage Service?

Do Small Businesses Need Cloud Storage Service?

Cloud Storage Services Not using cloud storage for your business yet? Cloud storage provides small businesses like yours with several advantages. Start using one now and look forward to the following benefits: Easy back-up of files According to Practicalecommerce, it provides small businesses with a way to back up their documents and files. No need…

Shadow IT To Remain A Focus For Both Cloud Vendors And CIOs

Shadow IT To Remain A Focus For Both Cloud Vendors And CIOs

Shadow IT To Remain A Focus Shadow IT, a phenomenon defined as building internal IT systems without the official organizational approval has been a growing concern for CIOs over the last few years. In 2015, it climbed to the top of the list of the emerging IT threats, with as much as 83% CIOs reporting…

5 Predictions For Education Technology

5 Predictions For Education Technology

Education Technology Although technology has fast influenced most sectors of our world, education is an area that’s lagged behind. Many classrooms still employ the one-to-many lecturing model wherein the average student is catered for while a few are left behind, and others bored. Recently, there’s been a drive to uncover how to use technology successfully…

The Future Of Cybersecurity

The Future Of Cybersecurity

The Future of Cybersecurity In 2013, President Obama issued an Executive Order to protect critical infrastructure by establishing baseline security standards. One year later, the government announced the cybersecurity framework, a voluntary how-to guide to strengthen cybersecurity and meanwhile, the Senate Intelligence Committee voted to approve the Cybersecurity Information Sharing Act (CISA), moving it one…

Fintech Investments Are Seeing Consistent Growth

Fintech Investments Are Seeing Consistent Growth

The Financial Services Cloud Fintech investment has been seeing consistent growth in 2015, with some large moves being made this year. The infographic (Courtesy of Venturescanner) below shows the top Fintech investors and the amount of companies they’re currently funding: Just this week, a financial data startup known as Orchard Platform raised $30 million in…