Cloud computing has been adopted by some parts of the public sector but the economics only work if large numbers embrace it. The government may have to force the issue
The best news about the recently announced Government Cloud Strategy is that central government clearly ‘gets it'. Despite a frustrating hiatus in direction, the public sector has still been pursuing an optimistic, if fragmented, approach to cloud computing over the past 12 to 18 months. Now it has a name - G-Cloud - and a clear, strong strategy.
For the uninitiated, cloud computing is defined as access to IT software applications (such as e-mail), or the storage, transfer or access of data using systems supplied remotely by a third party. Our recent research shows that the public sector has already embraced cloud IT and is well ahead of its corporate counterparts when it comes to implementation, with significant projects already underway.
The challenge is that much of this activity has been un-coordinated – as recognised in the Government Cloud Strategy document. Arguably, the most positive aspect of the new G-Cloud is the use of pilots and pathfinder projects, within clearly defined cloud ‘product’ areas, to develop proven services that can be easily adopted across the public sector as a whole. It's an approach that's clever, pragmatic and praiseworthy.
Overall, the new G-Cloud vision is one of agility, collaboration, culture change and transparency. All are recognised benefits of cloud-based technologies and present potentially transformative opportunities for the way local and national government can deliver services. In particular it will help to break down existing ‘fiefdoms' and dispel any remaining nimbyism surrounding cloud.
In fact, with the ever-increasing rate of change expected from central and local government, collaboration has never been more necessary. The G-Cloud approach offers a standardised suite of services that should work in the vast majority of cases.
However, one of the most significant cloud issues is a required change in procurement culture. This is less about the process elements of purchase and more about an understanding of what is being procured and why. In essence, if the public sector is to have any chance of creating a consistent, clearly articulated and implemented suite of G-cloud services, everybody has to be completely clear about what is meant by ‘cloud' in the first place.
Collaborate all you want but, as was so ably demonstrated some years ago by Nasa, if one party is using Imperial measures and the other US scale, the rocket won't fly.
Cloud defines a standard set of products or services, effectively stating ’take it or leave it’. There is limited room for customisation outside standard models. This approach offers significant benefits through standardisation of process and technology, but requires a major change in mindset across much of central and local government.
In particular, council clusters, authorities or small central government departments will need convincing that the commoditised, shared service model is the most efficient and cost effective, even if they have not directly had input into the definition of that service or its development.
The new Government Cloud Strategy is a huge step forward and a very positive, carrot-filled vision of benefits and collaboration. Yet, the economics of cloud only really work through scale and the benefits only come at a point where large numbers are using the cloud.
It's unlikely that supplier commercial models will generate price points that will incentivise the early adopters. So here's a question. At what point will the government have to introduce ‘the stick' (alongside the ‘carrot’) to put the more sceptical public sector heads in the cloud and increase the benefits for all?
Mac Scott is associate director of Xantus Consulting
