SMEs take large slice of the G-Cloud pie » SMEInsider

SMEs take large slice of the G-Cloud pie

According to the Government Digital Service (GDS), G-Cloud sales hit the £26m mark in July, with SMEs being awarded 64 per cent of the total. This means that G-Cloud sales are close to hitting £700m since the initiatives creation in 2012.

Facts and figures

The G-Cloud system was designed by the government after small businesses complained about securing government contracts. The G-Cloud initiative was set up to simplify the procurement process for SMEs that deal in commodity information technology services that use cloud computing.

Using its updated sales figures, GDS has reported that its total spending for digital services in the month of July was £26,422,949 (Ex Vat).

Out of that total, £17,007,176 (64 per cent) was awarded to SMEs. The figures look promising for the government’s digital procurement system, despite failing to display the figures on its dashboard.

These figures make good reading for GDS, as government onlookers feared that digital sales would slump after June’s GDS sales figures showed a total of £19m.

The government’s relationship with SMEs

Since the General Election in May, the Conservative government is determined to improve its relationship with small businesses, with the G-Cloud initiative seeming like it will be a major factor in continuing a decent association between the two.

The sales figures come off the back of the government’s pledge to increase small business spending, with Matt Hancock; minister for the Cabinet Office, intending to increase SME expenditure over the next five years. For every £3 that the government spends, £1 of it will be spent on SMEs.

‘‘From computers to uniforms – there are so many opportunities for small businesses to work with us, and I want to see more of them providing value for money for the taxpayer and benefiting from our spending,’’ stated Hancock.

John Allan, national chairman for the Federation of Small Businesses (FSB) has welcomed the decision, but feels that the target is an ambitious one.

‘‘To meet it, the government will need to focus on robust monitoring and challenge of poor practices wherever they are found. The FSB will play its part, and will work with ministers on this important goal.’’