Introduction

Crown Commercial Services’ (CCS) G-Cloud Framework has been renewed once again. The Invitation to Tender (ITT) for G-Cloud 14 went live on the 19th February 2024 which means that G-Cloud 13, the thirteenth iteration of the framework, is winding down.

With the push towards a ‘cloud first’ public sector, G-Cloud has fast become CCS’s most sought-after framework. For many technology suppliers, G-Cloud is seen as the most prosperous framework to be involved in. It’s easy to understand why - to date, a massive £16.74bn has been spent across the thirteen iterations, and spending continues to rise year-on-year.

Submissions for G-Cloud 14 close on 7th May so we've prepared this guide on G-Cloud’s historical spending trends to help you qualify your bid.Since the inception of G-Cloud in 2012, spending through the framework has consistently increased year-on-year.

We've visualised the growing popularity of the framework in the graph below.

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As the 2023/24 FY has not ended, this year's data displayed in the graph does not represent a full year of G-Cloud spend. When the final spend data is released, we can expect this year to demonstrate continued growth from 2022/2023.

While the overall direction of G-Cloud’s spend trend is striking, to make an informed decision about your G-Cloud bid, you first need to understand the nuance of which lots, suppliers and departments drive this spending growth.

Top G-Cloud framework lots by value

The G-Cloud framework is split into four lots, each built for procuring specific cloud-based products and services. Suppliers can also list their products and services on multiple lots if they are eligible for more than one category.

Whether you're an enterprise supplier or an SME, identifying the right lot can significantly enhance your chances of success.

Here’s how to align your offerings with the right opportunity:

Lot 1 - Cloud Hosting: Ideal for suppliers offering Infrastructure as a Service (IaaS) or Platform as a Service (PaaS). This lot favours enterprise suppliers ready to provide robust cloud infrastructure.

Lot 2 - Cloud Software: Tailored for SaaS applications, including CRMs, ERPs, and EPRs, built on cloud infrastructure. An accessible path for SME suppliers to enter the market.

Lot 3 - Cloud Support: Focuses on services essential for digital transformation, such as cloud migration, deployment, and ongoing support. A highly competitive lot for SMEs, due to its critical role in modernising government systems.

Lot 4 - End-To-End Cloud Services: A specialised framework for a select group of enterprise-level suppliers, offering comprehensive cloud solutions.

Below, we have analysed spending through the first three G-Cloud lots to identify which represents the most valuable opportunity for suppliers. The chart reveals that Lot 3 (Cloud Support) dominates expenditure, capturing 60% of the total spend.

This surge in spending is driven by the government’s urgent need to modernise legacy systems with cutting-edge cloud services, presenting a significant opportunity for suppliers specialising in cloud support.

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G-Cloud 13 spend by supplier size

Compared to more traditional routes to the public sector market, G-Cloud has historically represented a more competitive opportunity for suppliers of all sizes, bridging the gaps between small to medium-sized enterprises (SMEs) and larger enterprise providers seen in the wider market.

In the chart below, we zoom into spend on G-Cloud 13 to understand the opportunities suppliers of different sizes can expect from G-Cloud 14.

This analysis of G-Cloud 13 spending reveals critical insights:

• SME success: SMEs secured 42% of G-Cloud 13 spending, outperforming their success in the wider public sector where, on average, they are awarded around 27% of contracts. This highlights the framework as a viable route to market for SMEs.
• Enterprise advantage: Enterprise businesses count for just 10% of G-Cloud suppliers but they are responsible for 56% of spend on the framework. Their success rate is significantly higher than the average SME company and indicates efficiency in winning contracts in a less crowded competitor space.‍
• Market saturation: Although SMEs benefit from a considerable portion of the spending, companies in this category represent, over 4,500 of 5,000 listed suppliers (90%) were classified as SMEs by CCS on G-Cloud 13. This points to intense competition and market saturation for SMEs.‍

In conclusion, the intense saturation of the G-Cloud market means that simply being listed on the framework is no longer enough to guarantee success, especially for SMEs.

Securing your listing is merely the first step and, with over 5,000 competitors each year, suppliers must employ proactive sales and marketing strategies to distinguish themselves from the competition.

Top-spending public sectors through G-Cloud

To help further qualify your bid, we have broken down which areas of the public sector are spending the most through G-Cloud.

Overwhelmingly, we found that the majority of G-Cloud spending comes from Central Government.

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Central Government leads in overall spending due to higher expenditure per contract. However, with a total of £4.1 billion spent across other areas of the public sector, G-Cloud offers a substantial market opportunity for suppliers targeting specific departments (e.g. Healthcare, Local Government, or Blue Light services).

Conclusion

This report offers 3 key analysis points to help you qualify your G-Cloud 14 bid. To learn more about how to identify your next G-Cloud contract, download the full white paper using the link below.