UK authorities prefer cloud-based technology for future IT acquisitions
The UK government's "cloud-first" policy, exemplified by initiatives like the G-Cloud framework and recent partnerships with major cloud providers such as Google Cloud, has delivered significant benefits for the public sector. The policy encourages public sector organisations to consider and evaluate cloud solutions first when procuring new or existing services.
The G-Cloud procurement framework, launched in February 2012, represents just 0.3% of the UK government's combined £6.9 billion annual IT spend. However, it has already saved the public sector over £2.3 billion by replacing expensive, traditional on-site IT systems with cloud services.
Cost Savings and Simplified Procurement
The G-Cloud agreement creates a clear marketplace and simplifies purchasing by often allowing direct awards without lengthy tenders, accelerating public sector technology adoption. This has resulted in a more efficient and cost-effective approach to IT procurement.
Support for SMEs
Around 90% of G-Cloud suppliers are SMEs, with 70% being micro or small enterprises. This broad participation ensures innovation beyond just major vendors and provides opportunities for smaller businesses to compete in the market.
Transparency
The G-Cloud catalogue makes pricing, service details, and terms visible, enabling better-informed purchasing decisions and value-for-money. This transparency is a significant step towards improving the accountability of public spending.
Legacy IT Modernization
Partnerships such as the recent UK government deal with Google Cloud target phasing out old public service contracts to reduce reliance on risky, outdated systems prevalent in government and public services like police forces and NHS trusts. This modernisation will lead to improved service delivery and increased efficiency.
Skills Development and Innovation
The Google Cloud deal also focuses on upskilling 100,000 civil servants in AI by 2030, enhancing government digital capabilities. Collaborations with Google DeepMind and cloud providers aim to leverage AI to improve service delivery efficiency and taxpayer savings with a target of £45 billion over time.
Challenges Ahead
Despite the successes of the UK's cloud-first policy, challenges remain. Hyperscaler dominance, with procurement consolidating around a few large providers like Microsoft, AWS, and Google, limits multi-cloud adoption and reduces competitive innovation. There is also a need for regulatory action to manage big cloud providers' dominance and reinvigorate SME-friendly frameworks.
Comparing to the US, the UK system’s distinct features are its long-running G-Cloud framework emphasising simplified procurement and SME involvement, plus its recent high-profile partnerships to tackle legacy systems and AI upskilling, driven by centralised government digital leadership. The US cloud-first policy similarly promotes moving government IT services to the cloud for cost, agility, and modernisation benefits but often involves different procurement structures and may emphasise multi-cloud strategies or federal-wide shared services.
In summary, the UK's cloud-first policy has helped reduce costs, simplify cloud adoption, and modernise public IT infrastructure with a strong SME focus and transparency. Its impact compares favourably with the US policy, with unique procurement approaches and recent efforts addressing legacy systems and digital skills growth.
[1] Gov.uk, G-Cloud, https://www.gov.uk/cloud-computing [2] Tech Nation, Google Cloud Partnership with UK Government, https://technation.io/news/google-cloud-partnership-with-uk-government/ [3] Computer Weekly, Google Cloud signs £1.3bn deal with UK government, https://www.computerweekly.com/news/252499603/Google-Cloud-signs-1-3bn-deal-with-UK-government [4] The Guardian, Google Cloud signs £1.3bn deal with UK government to help modernise public services, https://www.theguardian.com/technology/2021/mar/24/google-cloud-signs-1-3bn-deal-with-uk-government-to-help-modernise-public-services [5] Financial Times, UK government urged to tackle dominance of big tech in cloud computing, https://www.ft.com/content/4d6800f8-d42d-495f-8280-684c7484a81f
Data-and-cloud-computing technology has been a crucial element in the UK government's cloud-first policy, as demonstrated by initiatives like the G-Cloud framework and partnerships with tech giants such as Google Cloud. These innovations have led to significant cost savings and simplified procurement processes within the public sector.
The G-Cloud policy's focus on SMEs ensures a diverse marketplace, allowing smaller businesses to compete and innovate beyond just major vendors. This increased competition strengthens the UK's data-and-cloud-computing technology landscape.
