G-Cloud adoption of cloud collaboration services

Posted by John Glover

26-Jun-2013 12:27:00

Although it is still early days for the UK G-Cloud, the initial signs regarding the take-up of cloud services and the opportunities for innovative and ambitious SMEs, like ourselves, are very promising.  Following on from my recent Blogs on price transparency and G-Cloud savings I thought you might like a glimpse of what we are seeing behind the scenes with regard to the adoption of Kahootz by G-Cloud ‘newbies’.

The right service, at the right time, at the right price!

Before looking at the facts and figures, it’s worthwhile to understand why we are one of the more successful SMEs on the G-Cloud.

Many public sector organisations across local and central government and the NHS are tasked with creating efficiency savings through the development of shared services and improved team-working. At the same time departmental managers are finding that their travel and consultancy budgets have been dramatically cut, making it harder to afford or justify frequent face-to-face meetings.

Cloud collaboration services, like Kahootz, are a great way for organisations to try out and benefit from the flexible, short-term, pay-as-you-go contracts the G-Cloud now offers. Because such services can be setup quickly to support any size of project, they are perfectly suited to tactical deployments that solve the business problem of improving collaboration and information sharing across both organisations and geographies. With the duration and cost of procurement significantly reduced for both supplier and buyer, even the smallest of projects are viable and can be successful.

With the advent of the UK G-Cloud, public sector organisations are no longer required to enter into wasteful long-term Enterprise license deals, they can start small and grow organically. If the cloud collaboration service delivers, is easy to use, and attractively priced, they will naturally want to purchase additional user licenses as a project evolves or as new stakeholder collaboration projects and initiatives materialise. The success of our business model relies on this growth dynamic. As an example, we have a private sector client who started with just 50 users 9 years ago and now has over 15,000 users across the globe.            

No BIG DEAL!

Unfortunately, because of the way organisations often adopt Kahootz, we have no headline grabbing orders to report. What we do have, however, are 11 happy G-Cloud clients across local and central government and the NHS who are getting great value from our pay-as-you-go licensing model. As the graph below shows, many of the public sector organisations that have started using Kahootz, via the G-Cloud, over the last 15 months have increased their user licenses. This, we are delighted to say, has resulted in month-on-month growth in total user licenses. 

G-Cloud Collaboration Adoption

N.B. the figures above do not include the increasing number of user licenses provided as part of our FREE G-Cloud Starter App service or the 10,000s of existing public sector users licensed before the G-Cloud. (July '13 based on orders expected)

So what are the key facts to date?

  • 11 G-Cloud clients, with many others in the pipeline
  • Smallest contract = 12 users @ £10/user/month
  • Largest contract = 1,000 users @ £2.03/user/month
  • Average license cost = £2.79/user/month

To avoid confusion, all our clients are treated identically and are on exactly the same tariff. (The G-Cloud Framework Agreement has been designed to specifically outlaw differential pricing.) The variance in license price paid above is due to the volume discounting model that we apply automatically as a customer’s user numbers increase. The more they spend, the more they save!

This time next year Rodney ….

Who knows where we will be next this time next year, but if the signs from the figures above are anything to go by, the G-Cloud is definitely working for us and our many new clients.  The G-Cloud initiative stimulated us to package our cloud collaboration service to be more accessible, and available, to the public sector. As a well-respected UK SME, we at last have a way to build on the relationships and reputation we have developed over the last decade.

If you would like to know more about how we are helping our clients, then why not attend my workshop at Civil Service Live in London next week or visit our stand in the G-Cloud Zone and #GCloudJoinIn !

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Topics: collaboration tools, g-cloud, case study