G-Cloud: Is there a silver, padded lining?
Yesterday, G-Cloud celebrated its third birthday.
In that time, it has accounted for £431m of government expenditure. (The correct figure is allegedly £467m, but the team is yet to update its data file to correct a bug I highlighted to them, so I can’t vouch for the latter figure. They’re hoping to correct this today.)
Of the £431m, £50m (12%) has been spent on software as a service (SaaS); £31m (7%) on infrastructure as a service (IaaS); £6m (1%) on platform as a service (PaaS); and a staggering £344m (80%) on “specialist cloud services”, defined as follows:
Specialist Cloud Services (SCS) support your transition to SaaS, PaaS and IaaS. Examples of SCS include cloud strategy, data transfer between providers or day-to-day support of cloud-based services.
My take on this is that the SaaS, IaaS and PaaS are on the out-of-the-box widgets themselves; and “specialist cloud services” are the people who are needed to either implement or support cloud.
But if you were to buy a truly cloud-based service, one that plugged and played, then even though there are humans needed to support this on a day-to-day basis, my view is that their effort and cost would be wrapped up into the *aaS cost, and would be labelled such. For example, every penny of the £2,970,196 that Ninian Solutions (Huddle’s trading name) has earned through G-Cloud is labelled as SaaS. If you want Huddle, you sign a contract; you get some licences; and it’s yours to use. There are humans who support it on a day-to-day basis – hell, I’ve met lots of them. But to the customer, these people are invisible.
So I expect that the humans covered by the SCS bucket above are doing the stuff that *doesn’t* come out of the box – either migrating stuff to the new solution, or doing something cloud-related that doesn’t come out of the proverbial box. One hopes that they’re not doing stuff unrelated to cloud. That wouldn’t be good, would it?
In my rather simplistic mind, cloud has two features. First, it’s available solely over the internet. And secondly, it’s shared. If it’s not available over the internet, then it becomes infrastructure sat in a semi-dedicated data centre, which is the old world of IT, and therefore doesn’t fit the cloud definition. It’s available over a network, but that network is a pipe dedicated for use by the end client.
And if it’s an application that is designed and/or implemented specifically for your use, then it doesn’t embrace the ethos of cloud that is associated with driving down cost through reuse.
I would have hoped that by embracing the two features above, the extent to which humans was needed would be much less than the above numbers suggest to be the case.
There is clearly a need for people to implement the things that you are buying through G-Cloud. But I am surprised that 80% of the money that is being spent on G-Cloud is dedicated to this. I have no idea what an appropriate percentage would be – indeed it might be entirely appropriate for four pounds in every five to be spent on the people associated with the service. Views?
G-Cloud is a fabulous thing. It has transformed the way in which certain elements of IT are bought within government, and has brought into the fold a large number of small- to medium-sized supplier organisations. But I find certain elements troubling.
Valtech, BJSS, Methods Advisory, Equal Experts, PA Consulting and IBM UK are the biggest six suppliers based on total evidenced spend, with a total take of £88m. Of that, £87,188 has been spent on *aaS. That’s less than 0.1%. All of the remainder has been spent on the humans to think about, implement and support this stuff. I wonder whether that was the model intended when G-Cloud was introduced.