Crown Commercial Service explains how its G-Cloud agreement enables businesses of all sizes to provide cloud computing services to the public sector
Crown Commercial Service’s (CCS) G-Cloud agreement allows businesses of all sizes to supply cloud computing services to the public sector.
CCS, the UK’s largest public procurement organisation, has been managing and updating the G-Cloud framework for over a decade. The current iteration, known as G-Cloud 14, was officially launched for the public sector to use on 9th November 2024.
G-Cloud 14 currently allows over 4,000 awarded suppliers to provide tens of thousands of cloud hosting, cloud software and additional support services to the public sector.
How G-Cloud works
Lots 1-3 of G-Cloud 14 allow for direct awards on off-the-shelf, commodity-based services:
- Lot 1: Cloud Hosting – Infrastructure as a Service (IaaS) and Platform as a Service (PaaS): cloud platform or infrastructure, which allows buyers to deploy, manage and run software, and provision and use processing, storage or networking resources
- Lot 2: Cloud Software – Software as a Service (SaaS): applications which are accessed over the internet and hosted in the cloud
- Lot 3: Cloud Support: services to help buyers set up and maintain their cloud software or hosting including: cloud migration planning; set up and migration; security services; quality assurance and performance testing; training; and ongoing support
A fourth Lot covering the same scope as Lot 3 allows buyers to run their own further competitions across this range of services. This Lot is often used for larger, more complex procurements, although there is no minimum spend requirement for this Lot.
Buyers using G-Cloud 14 can specify call-off contracts for a period of up to 36 months, with one optional extension period of up to 12 months if required, allowing greater freedom for buyers to ensure they can access the best solution for their needs.
G-Cloud 14 is currently live for customers to use, and work has already begun on the development of the next iteration of the agreement – G-Cloud 15.
G-Cloud 15 will mark a significant change in the way the agreement operates as it will be an open framework, a new type of framework introduced by the Procurement Act 2023, lasting a total of four years. This is the first time a G-Cloud agreement will have been able to be developed as an open framework.
This means, that whereas previous iterations have been closed to new services or suppliers for their whole lifespan, G-Cloud 15 will reopen for suppliers 18 months after it first goes live, allowing new suppliers to bid for a place on the framework and existing suppliers to add and update services. This flexibility means G-Cloud will be able to keep pace with the market and continue to ensure best value is maintained for public sector buyers into its next iteration.
How G-Cloud benefits public sector buyers
G-Cloud was first launched by CCS in 2012 to give public sector organisations a simple and compliant way to buy ready-made, off-the-shelf cloud computing services.
The agreement helps public organisations find and procure cloud-based services, saving them money by replacing traditional on-site systems.
G-Cloud creates a clear, diverse marketplace where public sector buyers can purchase cloud services through a simplified buying process. For most iterations, purchases through the agreement were exclusively as direct awards with no further competition, reducing the need for lengthy tender processes, but a new Lot to allow competitive purchases was introduced for G-Cloud 13 and remains in G-Cloud 14.
The simplicity of G-Cloud enables quicker and more efficient engagement with public sector buyers by reducing the complexity and duration of the tendering process.
Since it began, G-Cloud has saved public sector organisations over £2.3 billion, ensuring efficient and effective use of taxpayer money.
Open to all suppliers
Thousands of suppliers have joined G-Cloud over the years, offering many different cloud services. Many of these are small and medium- sized enterprises (SMEs), making G-Cloud important in CCS’s ambition to help smaller businesses win government contracts.
For G-Cloud 14, 90% of suppliers are SMEs, with 70% being micro and small organisations. About 38% of all spending through G-Cloud 13 went to SME suppliers.
The framework is regularly updated and iterated, keeping focus on innovation and allowing new technologies and suppliers to join between versions.
Another major benefit of G-Cloud is its transparency: all supplier information, including service details, prices and terms is readily available in the catalogue, helping buyers make better decisions and get the best value when buying.
G-Cloud 15: Find out more
You can find more information about G-Cloud 15 as it becomes available on the agreement webpage.
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