SMEs join 'the usual suspects' as government 'app store' opens its doors
Posted by Stuart Lauchlan in Technology, Business trends on Sun, 19/02/2012 - 16:24
The usual suspects are still in there, but the new government CloudStore has also levelled the procurement playing field for a number of UK SMEs.
Among the commitments made by the coalition government about reforming procurement was to make it easier for SMEs to engage with public authorities – and one of the tools to do that was to be its G-Cloud programme.
At the heart of the G-Cloud is an online market place – an app store for the public sector effectively – known as the CloudStore. Providers – both large and small – are able to submit their services for accreditation and if successful have a leveled playing field within the catalogue of approved suppliers from which public sector buyers can choose.
The CloudStore opened on Sunday after a deadline for submissions had to be extended twice in the face of interest, much of which came from SMEs according to Cabinet Office offiicials.
So how did it work out in practice for SMEs? Not too badly it seems on first sight. While the inevitable 'usual suspects' names are there – Microsoft, IBM, HP, Dell, SAP and so on – there are enough SMEs involved in the first iteration of the CloudStore to give hope that this might be what SME providers have been waiting for.
Most notable among the SMEs named is Basingstoke-based SME Solidsoft which has acutally built the CloudStore on Microsoft's Windows Azure software platform, a feat it completed in less than four weeks.
"Our work on this project will help advance the uptake of Cloud technology and fuel the growth of the UK’s IT SMEs," said Garth Pickup, CEO of Solidsoft. "The CloudStore will help the public sector harness the agility and innovation that SMEs bring to the table. At the same time, it will help those SMEs to conduct effective business with Government, on a level playing field with their larger counterparts."
It’s a new approach, agreed Phil Dawson, CEO of Skyscape which is also one of the successful G-Cloud entrants. "The G-Cloud framework represents a significant step change in the delivery of IT infrastructure and services," he argued. "The UK government has stated its intention to engage with the private sector in an entirely different way, on a different level and with transformational effect. Clearly the G-Cloud initiative is one part of this reform."
One successful bidder declared this the beginning of the end of large systems firms grip on the public sector. "G-Cloud has the potential to be enormously disruptive. It heralds the breaking of large systems integrators' strangle-hold over government ICT," said Kate Craig-Wood, CEO of services firm Memset.
"In my view as tax-paying technology expert their consultancy-lead, bridge-building approach has historically delivered remarkably poor value to government. As one of a new breed of government ICT supplier we sincerely intend to work with government to delivery better quality, secure and environmentally friendly ICT services at vastly lower prices than those to which they are accustomed."
It's a viewpoint shared by others. "Securing government technology deals has long been an area dominated by integrators and technology goliaths and this Framework has now levelled the playing field," says Alistair Mitchell of UK Cloud collaboration services firm Huddle. "The Framework enables organisations to make the move from costly on-premise legacy ICT systems to innovative cloud-based technologies much faster and creates real competition in the government Cloud services marketplace."
Leicester-based Jadu's 'Universe Cloud', has been listed under two lots in CloudStore. "Millions of pounds have been spent on outsourcing deals with large IT services companies for web solutions that can otherwise be implemented quickly and easily by SMEs in the cloud," says Suraj Kika, CEO of Jadu. "SMEs like Jadu can deliver faster, cheaper and more secure solutions, enabling Government to innovate and deliver services much faster."
Daresbury-based, Ixis was successful in all the three 'lots' they applied for - Lot 2: Platform as a Service (PaaS), Lot 3: Software as a Service and Lot 4: Specialist Cloud Services. Ixis specialises exclusively in the open source Drupal platform. "The visibility the G-Cloud initiative offers to public sector departments fits especially well with our company’s core values, providing clarity to enable them to get the right work done at the right price," said Ixis founder Mike Carter.
Another UK SME to pass muster this time around is FlyingBinary, which will offer Google migration services. Jacqui Taylor, FlyingBinary's CEO, commented: "We are really excited to have this opportunity to provide migration management services for the Google platform and rapid, low-cost analytics and Business Intelligence to government departments."
For those SMEs not successful this time around or those who didn't bid and want to explore future inclusion, the second iteration of the CloudStore is already being planned.
The overall process follows a number of key stages:
- Suppliers submit bids for the services they wish to supply
- The Government then evaluates and selects suppliers based on the responses provided
- A Framework Agreemeny is then negotiated with the successful companies.
- Mandatory assurance checks take place as well as an Accreditation Process for the successful services
- Government buyers then use the CloudStore to compare and select services to meet their needs via a call-off contract.
The G-Cloud guidance notes to vendors explain: "This process is known as the Open Procedure to establish a Multi-Supplier framework. That is you are tendering to supply the public sector with services – should you be successful you, and mostly likely other suppliers, will be part of a framework agreement allowing public bodies to buy services from you should you meet their needs."
The next opportunity to bid for entry will come around quickly. G-Cloud Programme manager Chris Chant stated recently: "My expectation is that from Easter the second iteration of the framework will be out. This time it will enable us to add new suppliers on a monthly basis. That really for me sets the scene for things: we’ll have a living framework and dynamic procurement."
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