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CCI
Thursday, 05 February 2015 00:25

G-Cloud sales are up to £430 million

Written by 

Enterprises are taking the lion’s share of contracts on the Government Digital Marketplace with sales fast approaching half a billion since launch.

 

The Digital marketplace is like public transport, you don’t see anything then three things come along together. This week we’ve seen the G-Cloud 6 framework launched, and new features from Skyscape and Smart421 and now it’s the turn of the December figures for spending on the Digital Marketplace.

As you would expect for a month dominated by the Christmas and New Year break contract spending was down. The contract total for December  was £31 million in 2,034 contracts, a big drop compared to November’s £43 million in 3,356 contracts, which given the current growth rate means the magic half a billion total figure won’t hit until March at the earliest.

However while sales are down the figures are starting to reveal a move away from small and medium sized businesses to large businesses.  The latest figures show that 57% of sales by number, were awarded to SMBs, but when you look at the makeup of the Digital Marketplace SMBs represent 87% of the total businesses on the Digital Marketplace. 

 

Total

SMBs

%

Large Business

%

Gap

Jan-14

£111,599,575

£54,119,316

48.49%

£57,480,259

51.51%

3.01%

Feb-14

£128,867,514

£64,594,217

50.12%

£64,273,297

49.88%

-0.25%

Mar-14

£159,575,461

£80,599,366

50.51%

£78,976,095

49.49%

-1.02%

Apr-14

£181,920,981

£92,396,502

50.79%

£89,524,480

49.21%

-1.58%

May-14

£205,423,645

£103,724,554

50.49%

£101,699,090

49.51%

-0.99%

Jun-14

£233,326,548

£117,883,908

50.52%

£115,442,639

49.48%

-1.05%

Jul-14

£261,912,967

£132,372,163

50.54%

£129,540,804

49.46%

-1.08%

Aug-14

£290,088,825

£147,957,525

51.00%

£142,131,300

49.00%

-2.01%

Sep-14

£323,645,652

£163,406,906

50.49%

£160,238,746

49.51%

-0.98%

Oct-14

£356,201,165

£177,967,560

49.96%

£178,233,605

50.04%

0.07%

Nov-14

£399,580,845

£194,064,586

48.57%

£205,516,259

51.43%

2.87%

Dec-14

£431,291,049

£208,318,626

48.30%

£222,972,423

51.70%

3.40%

 

If you take the cumulative value of contracts for all of the G-cloud frameworks (see above), enterprises seem to take an even larger chunk, 51.7% compared to 48.3% with a trend downwards for SMB sales.

 

 

Total Month

SMBs

%

Large Business

%

Gap

Jan-14

£16,812,095

£8,666,678

51.55%

£8,145,417

48.45%

-3.10%

Feb-14

£17,267,939

£10,474,901

60.66%

£6,793,038

39.34%

-21.32%

Mar-14

£30,707,947

£16,005,149

52.12%

£14,702,799

47.88%

-4.24%

Apr-14

£22,345,521

£11,797,136

52.79%

£10,548,384

47.21%

-5.59%

May-14

£23,502,663

£11,328,053

48.20%

£12,174,611

51.80%

3.60%

Jun-14

£27,902,903

£14,159,354

50.75%

£13,743,549

49.25%

-1.49%

Jul-14

£28,586,420

£14,488,255

50.68%

£14,098,165

49.32%

-1.36%

Aug-14

£28,175,857

£15,585,362

55.31%

£12,590,496

44.69%

-10.63%

Sep-14

£33,556,827

£15,449,381

46.04%

£18,107,446

53.96%

7.92%

Oct-14

£32,555,513

£14,560,655

44.73%

£17,994,858

55.27%

10.55%

Nov-14

£43,379,680

£16,097,026

37.11%

£27,282,654

62.89%

25.79%

Dec-14

£31,710,204

£14,254,039

44.95%

£17,456,164

55.05%

10.10%

 

Looking at the gap on a month by month basis (see above) reveals an even wider gap between SMBs and enterprises.  While we realise judging sales on value produces a skewed result, as large contracts are more likely to go to larger businesses than small (of the 2034 contracts in December the average large business contract was £19,288 while the average SMB contract was £12,625), there is still an unmistakable underlying trend away from SMBs.

Of the contracts awarded in December the largest in value went to Mastek UK with £2.05 million, followed by Phoenix Software with £1.6 million and PA Consulting in third place with £1.4 million. Skyscape who did well in November were down in 10th place with £0.9 million. Interestingly Phoenix are an SME, however the single project they won, which was also the largest single contract in December was to supply VMware licenses for the HS2 project.  

Once again what’s most revealing in these lists are the names that are missing. According to the files AWS has just £767 and 55 pence worth of contracts, Google doesn’t appear on the list and neither does Microsoft UK – Although Microsoft Ireland does.  We leave you to draw your own conclusions.

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