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

Follow Me!

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.
Follow Me!

Sorry, comments are closed for this post.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

Cloud Infographic: Most Used Cloud Apps

Cloud Infographic: Most Used Cloud Apps

Cloud app and analytics company, Netskope released its quarterly Cloud Report. The new report reveals that enterprise employees are using an average of 397 different cloud apps (most of which are unsanctioned), when IT estimated they have 40-50 — that’s a tenfold underestimation. Below is an infographic provided courtesy of the group at Netskope which goes into further detail.…

Big Data Analytics Adoption

Big Data Analytics Adoption

Big Data Analytics Adoption Big Data is an emerging phenomenon. Nowadays, many organizations have adopted information technology (IT) and information systems (IS) in business to handle huge amounts of data and gain better insights into their business. Many scholars believe that Business Intelligence (BI), solutions with Analytics capabilities, offer benefits to companies to achieve competitive…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic –  The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the…

IBM and SAP Announce Industry’s Largest Cloud Deal

IBM and SAP Announce Industry’s Largest Cloud Deal

IBM and SAP Announce Industry’s Largest Cloud Deal IBM and SAP have shaken the cloud computing world this afternoon with the announcement of one of the largest cloud deals in the industry’s history – bringing together two of the largest technology companies in a bid to offer a more holistic service to their clients. SAP…

Featured Sponsors

Moving From Email Into The Cloud

Moving From Email Into The Cloud

Mobile Collaboration In The Cloud Imagine that you, as a manager, are told by the powers that be that you have to find “efficiencies” within your department that will result in one million dollars of savings annually. You struggle with this. You send an email to everyone on your senior team. “Where can we save…

Sponsors

Going Global With The Cloud: Anywhere, Anytime Access

Going Global With The Cloud: Anywhere, Anytime Access

Let’s cut right to the chase… Lots of companies have offered 24/7 availability of systems and data to their customers and employees for years. What else is new? What’s new is that a cloud computing environment can make 24/7 availability possible for small and medium size enterprises (SMEs). (Infographic Source:Towergate) Previously, only organizations with robust IT…

Placement Opportunities - Find Out!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter