"The UK government has launched a competition for cloud services worth up to £14 billion over four years - nearly triple the £4.8 billion over 18 months announced in an earlier market engagement. The Crown Commercial Service (CCS), a branch of the Cabinet Office, opened the G-Cloud 15 tender last week to provide cloud infrastructure, platform, and hosting services across the public sector."
"Pegged at a maximum of £14 billion (excluding VAT) over four years, the framework's value and timeframe have swollen since an earlier market engagement, which estimated it to be worth up to £4.8 billion and run for 18 months from March 2026. The expansion comes as UK public sector cloud spending reached £6 billion in 2024, according to the Department for Science, Innovation and Technology."
"In April last year, The Register revealed officials admitted negotiating power over billions of pounds of cloud infrastructure spending has been inhibited by vendor lock-in. A paper from the Central Digital & Data Office - which was part of the Cabinet Office and is now merged with the GDS in DSIT - said the government's approach to cloud adoption resulted in "risk concentration and vendor lock-in that inhibit UK government's negotiating power over the cloud vendors.""
The Crown Commercial Service opened the G-Cloud 15 tender to provide cloud infrastructure, platform, and hosting services across the public sector, with the agreement expected from September next year to September 2030. The framework is pegged at a maximum of £14 billion (excluding VAT) over four years, expanded from an earlier estimate of up to £4.8 billion over 18 months. UK public sector cloud spending reached £6 billion in 2024, with G-Cloud 14 spending at £3.1 billion in FY 2023/24. Procurement delays prompted extensions to other frameworks, adding £1.65 billion in potential spending. Officials have warned of vendor lock-in and risk concentration inhibiting negotiating power with cloud vendors.
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