G Cloud Uk Meetup

Ivan Harris, Eduserv - G-Cloud: The Value-Commodity Paradox?

G-Cloud:

The Value-Commodity Paradox?

G-Cloud Meet Up, London

Ivan Harris, Business Manager - Cloud Services 2nd October 2013

IT for public good Commercial in Confidence

Copyright Eduserv 2013

All Rights Reserved

Value vs. Commodity

Co-created Value

Solution

Offer

Component

Co

mm

od

itis

atio

n

Val

ue

G-C

lou

d

N

ee

ds

• More commodity solutions • Flexibility and freedom • Ready and easy to use • Low cost • Competitive marketplace

• 50% cloud-based services /

50% SMEs supply target

G-Cloud Strategy

• 36%: SME scale and capacity • 29%: Nervous about working

with new suppliers • 32%: Difficult to split services

into the CloudStore constituents

• 24%: Lack of trust and relationships with suppliers

Eduserv Civil Servant Survey

IT for public good Commercial in Confidence

Copyright Eduserv 2013

All Rights Reserved

It’s a Matter of Trust!

• Purchasers need the trusted advice of expert suppliers to create value-added solutions

• Suppliers need to understand the purchaser’s business drivers and requirements

• Business trust is built on:

– Shared values – Predictability – Success – Mutual benefit

• Trust requires relationship building

• Agile delivery requires trust

• There’s no need to sacrifice value!

• A success story…

Co-created Value

Solution

Offer

Component

Co-created Value

Solution

Offer

Component

Plan A Plan B

$$$

IT for public good Commercial in Confidence

Copyright Eduserv 2013

All Rights Reserved

CloudStore and SME Spending Trends

Lot Mar 2013 Aug 2013

1 (IaaS) 0.6 (3.4%) 1.3 (3.5%)

2 (Paas) 0.3 (1.6%) 0.4 (1.1%)

3 (SaaS) 5.1 (28.0%) 7.8 (20.7%)

4 (Svcs) 12.2 (67.0%) 28.0 (74.7%)

Total Value 18.2 37.5

Transactions Mar 2013 Aug 2013

Transactions 909 2080 (+129%)

Average Value £20.2K £18K (-11%)

Num Customers 159 227 (+43%)

Num Suppliers 108 151 (+40%) G-Cloud III May 2013

G-Cloud I Feb 2012

G-Cloud II Oct 2012

G-Cloud 4 Nov 2013?

• By 2015, 50% of new central government IT spend to be on cloud-based services and 50% to SMEs

• Overall government SME spend has increased from 6.5% in 2009/10 to 10.5% in 2012/13

• £11.3Bn public sector SITS market, £10.4Bn to top 20 providers

• 2011/12 to 2012/13 SME spend increase: Direct £4.4Bn to £4.5Bn, Indirect £2.9Bn to £4.0Bn

• £11.3M of CloudStore spend in year 1 versus £6.5Bn of Central Government spend (~0.2%)

• Data shows exponential growth in CloudStore purchases

IT for public good Commercial in Confidence

Copyright Eduserv 2013

All Rights Reserved

Summary

• CloudStore and SME spend are

trending in the right direction

• Combine the ease of use and

cost savings of CloudStore with

relationships

• Blend large SIs with SMEs for expertise, innovation and cost savings

• Continue to advocate large SI/SME coopertition

• Find SMEs who can deliver co-created value directly

Value Trust Commodity

Thank you!

Ivan Harris ivan.harris@eduserv.org.uk

(07925) 224284