Government report paints uncertain future for G-Cloud

Programme given an Amber/Red rating in traffic-light system indicating need for 'urgent action' on 'major risks'

Doubts have been cast over the future of the G-Cloud programme after government assessors rated the project as having "major risks" requiring "urgent action".

The Major Projects Authority, which is part of the Cabinet Office, released its Annual Report this week, which included a traffic-light ranking of the success of 191 ongoing big-ticket projects across all government departments. The G-Cloud programme was given an Amber/Red rating.

This indicates: "Successful delivery of the project is in doubt, with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed, and whether resolution is feasible."

The report does salute G-Cloud for making "considerable progress despite limited resources", but acknowledges that it is necessary to "fundamentally change government IT buying behaviours". It is noted that the online CloudStore is "viable" and "supported by an ambitious procurement framework".

The report adds that "the concept has clearly generated an enthusiastic response from suppliers, particularly SMEs". But the key problem is identified as getting government IT chiefs to buy into a new way of procuring and consuming technology.

"The programme still has a significant number of challenges to overcome to reach its stated savings objectives and its aspiration to fundamentally change central government ICT buying behaviours," says the report. "In particular, departments have yet to fully change their culture in terms of approach to ICT as old ways of doing things are so deeply engrained."

The report urges a "reshaping of the programme to focus on the commercial aspects of the CloudStore as a retail proposition, improving the user experience and engaging the buying community more directly in the objectives of the programme". Ensuring widespread uptake will involve suppliers working with departments and the Cabinet Office "to enforce use of the CloudStore across central government".

The first iteration of the CloudStore launched 15 months ago, with 1,700 off-the-peg services being offered by 257 suppliers. G-Cloud iii launched recently, with more than 700 suppliers offering upwards of 5,000 services.

Sales through the online marketplace were sluggish at first but have gained something of a head of steam in recent months. Up to the end of March, £18.2m of business had been transacted through CloudStore, with about three fifths of this coming in February and March.