G-Cloud News

2014 - What an amazing year for G-Cloud

7th Feb 2015

2014 review - awesome

Total spend is via G-Cloud is £431m, £336m in 2014, £87m in 2013 and £7.1m in 2012.

Spend with Small and Medium Sized Enterprises (SMEs) continues at pace - £162m in 2014 with £42m in 2013.

Spend peaked in November at £43m. Monthly spend in 2014 increased by an average of £1.8m a month from £16m in January to £32m in December (expect the Dec figure to be revised upwards to around £35m when the Jan data is released).

2015 forecasts

Our forecast for G-Cloud spend in 2015 is between £500m and £600m

There are three main factors that will influence total G-Cloud spend, two positively and one negatively:

The number of buyers continues at pace, rising from 346 a year ago to 695 today. As new organisations continue to join the framework, the total spend will increase and could lead to a significant overshoot of our 2015 forecast. Spend of £750m in 2015 would not be a surprise. We are analysing the 2014 data to see how much 'new' buyers contributed in 2014. We will publish the data once we have it but a swift review indicates that we expect new buyers to contribute an additional £200m in 2015.

More large IT contracts expire in 2015. A quick review of the spend data suggests that once a buyer starts using G-Cloud, they expand the number of purchases quickly. We expect that this behaviour will add about £100m to total spend in 2015. Again, we are analysing the data and will publish our finding when we have them.

Inline with Government strategy, we expect that some G-Cloud spend will move to other frameworks, particularly the Digital Services Framework for Agile developers. We forecast that about £100m will move from G-Cloud to Digital Services and other frameworks.

The net effect of these three factors will be an increase in G-Cloud spend of about £200m.

Review of December and 2014 data

The number of customers continues to grow strongly - up 21 in December (bringing the total to 695).

The number of suppliers is growing - up 13 in December (bringing the total to 455).

The trend figure for spend has increased £4m to £34m. Average monthly spend is increasing by about £2m a month.