The majority of G-Cloud sales by value to date have gone through just 30 suppliers, CRN's analysis of official spending data reveals.
Since the government framework launched in March 2012, total sales have reached £959,555,264, the Government Digital Service (GDS) disclosed last week, adding that sales through the Digital Marketplace – home of G-Cloud and the Digital Services Framework – have surpassed the £1bn barrier.
To mark the milestone, and on the eve of G-Cloud's fourth birthday, CRN analysed all the G-Cloud sales data to date.
According to the analysis, the total sales figure was achieved through sales with 653 suppliers. But the majority (50.4 per cent) of sales by value went through just 30 uppliers – four per cent of the total number of IT providers who have conducted any transactions. Of those 30 firms that bagged the majority of G-Cloud business, 17 (59 per cent) were large firms, and the rest were SMEs.
On top of that, the GDS claimed in December that there are 2,566 suppliers accredited on the current iterations of the framework, G-Cloud 6 and G-Cloud 7, but just 653 (25 per cent) of those suppliers have made a sale through all G-Cloud iterations ever.
CRN carried out similar research in November 2014, revealing that two thirds of suppliers had yet to make a sale through the framework at the time. Now that figure stands at three quarters of suppliers which are accredited on the framework but have made no cash, suggesting efforts to include more providers on the framework have been unsuccessful.
Yesterday, CRN revealed the leader board of the top G-Cloud suppliers by spend. The top 30 of those have transacted more than half of total G-Cloud sales to date (list below).
The Cabinet Office was not immediately available to comment on CRN's findings.
Cloud firm Skyscape is among the companies in the top 30. Commercial director Nicky Stewart explained why she thinks certain businesses are doing so well through the framework.
"When you come to G-Cloud and you get on the G-Cloud framework and you get your products and services on the Digital Marketplace, you're probably playing in one of the most competitive, toughest markets you could wish for," she said. "Everything you do – your prices and service descriptions – are out there in the public domain. Anyone can log in and that includes your competitors.
"Secondly, the way that buyers buy on the Digital Marketplace is that they go and search for search terms. The process of selling has to be done in a different way. You've still got to invest in salespeople and you've still got to do anything that a supplier would do in a conventional environment, but you have to do more of it."
She added that a lot of suppliers think that getting on G-Cloud guarantees business, which is a misconception.
"You can't just assume you're going to get on G-Cloud, your services will turn up in a search, and away you go; everything is wonderful. It doesn't work like that. Those suppliers who are being successful are positioning themselves to meet the needs of the market."
Peter Bodley-Scott, public sector sales manager at Node4, said that if the wider public sector were more aware of the benefits of G-Cloud, more suppliers might be able to cash in.
"The limited number of contracted suppliers through whom procurement is currently being channelled does create a problem for the wider community of innovative yet established suppliers who are registered with the G-Cloud catalogue," he said.
"Improving awareness of the catalogue throughout public sector procurement channels, as well as making it mandatory to procure certain services through the framework, would help to distribute opportunities to a wide group of approved suppliers."
7 – number of individual transactions on G-cloud worth more than £1m
1,688 – number of individual transactions on G-Cloud worth more than £100,000
63,250 – number of individual transactions in total
£15,170.83 – average (mean) deal size
£5,130 – average (median) deal size
653 – number of suppliers successfully making a sale on all iterations of G-Cloud to date
Top 30 G-Cloud suppliers through which more than half of total G-Cloud sales have been transacted:
3) Equal Experts
4) Methods Advisory
9) PA Consulting
12) BAE Systems
13) Inoveer Solutions
16) Alpine Resourcing
17) LA International Computer Consultancy
20) Solirius Ltd
22) Lockheed Martin Business Technology
24) Parity Group
25) The Engine Group
27) Sopra Group
28) Russam GMS
29) Allen Lane
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