G-Cloud News

In summary

28th Feb 2015

Spend by year is £25m in 2015 (so far), £347m in 2014, £87m in 2013 and £7.1m in 2012.

Spend with Small and Medium Sized Enterprises (SMEs) continues at pace - £13m in 2015 so far, £171m in 2014 with £42m in 2013.

Spend peaked in November 2014 at £43m. Monthly spend in 2014 increased by an average of £1.8m a month from £16m in January to £41m in December.
Expect the January figure to be revised upwards to over £40m when the February 2015 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 in Dec 2013 to 695 in Dec 2014. 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 Jan 2015 data

The number of customers continues to grow strongly - up 21 in January (bringing the total to 716).

The number of suppliers is growing - up 21 in January (bringing the total to 476).

The trend figure for spend has increased and is now about $40m a month. Average monthly spend is increasing by about £1.8m a month.