Charity Finance Directors’ Group

Bill McCluggage

Deputy Government Chief Information Officer& Director of ICT Strategy & PolicyCabinet Office

NOT A STATEMENT OF GOVERNMENT POLICY

Government’s agenda for

IT:

how will this impact the

voluntary sector?

NOT A STATEMENT OF GOVERNMENT POLICY

The key focus:

• about putting more power into people’s hands and opening up Government - it involves changing ICT so it is interoperable between Whitehall and local communities.

• people coming together to solve problems and improve life for themselves and their communities

“....where people in their everyday lives, their homes their neighbourhoods, their workplace, don’t always turn to officials, local authorities or central government for answers to the problems they face, but instead feel both free and powerful enough to help themselves and their own communities.”Prime Minister, 19 July 2010

BUILDING A

We need ICT to enable:• Community empowerment: giving local councils

and neighbourhoods more power to take decisions and shape their area

• Opening up public services: enabling charities, social enterprises, private companies and employee-owned co-operatives to compete to offer people high quality services

• Social action: encouraging and enabling people to play a more active part in society

Challenges (Inward Facing)

• Oligopoly of suppliers

• Projects too big, unmanageable, slow to procure and implement

• Infrastructure is not interconnected and interoperable

• Solutions are duplicated and re-invented within organisations

Challenges (Inward Facing)

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911 April 2023

• Foster social mobility

• Enable economic growth

• Delivering better public services

• Greater government-citizen engagement

• Greater transparency

Challenges (Outward Facing)

“We will promote small business

procurement, in particular by

introducing an aspiration that 25%

of government contracts should be

awarded to small and medium-

sized businesses and publishing

government tenders in full online

and free of charge.”

Quoted from the Coalition Strategy for Government

Government Policy

“We will create a level playing field

for open-source software and

enable large ICT projects to be

split into smaller £100m

components.”

Government Policy

Coalition Programme for Government

“We will take steps to open up

government procurement and

reduce costs; and we will publish

government ICT contracts online.”

Coalition Programme for Government

Government Policy

"The days of the mega IT contracts

are over, we will need you to rethink

the way you approach projects,

making them smaller, off the shelf and

open source where possible.”

Francis Maude MP, Minister for the Cabinet Office, 2nd December 2010

REALITY

So UK Gov ICT Spend?

Data Centres £3.2 bn

Desktop £1.85 bn

Data Network £1.69 bn

Voice Network £1.01 bn

Help Desk £1.18 bn

Application Dev £3.04 bn

Application Support £3.04 bn

Finance, Man, Admin £1.85 bn

Gartner Global ICT Spending Analysis (average) by ICT Element 2003 -2009 indicates where money is typically spent in ICT

Source Gartner analysis January 2010

£16.9bn

WHAT DOES SUCCESS LOOK LIKE?(INWARD FACING)

The Technology Stack

Common Capability

Shared Infrastructure

Reduced Costs

Specific ICT to that department only

Specific to that organisation

Reduced costs through competition

The Government Applications Store

Use and Re-use across departments

Shared components Open source /

standards / innovation

The Government Cloud

Simplification, standardisation,

Data Centres Common shared infrastructure

Voice and Data Telecommunications

Desktop and Peripherals

Common Open Standards and

Architecture

Simplification, standardisation,

mandation

Reduced costs through consolidation, simplification,

mandation

A Common ICT Infrastructure:

COMPUTING

CLOUD

Establish an open market Run a successful market

Make change simple and easy to achieveA marketplace where purchasers can switch easily between providers at the end of contracts - or where a provider under-performs.

Make pricing transparent and comparableVisibility of all additional service charges, and costs of change, reflecting total cost of service and priced on a utility model by a measurable unit.

Lowest price per transaction for all public sector bodies, supported by initial and periodic benchmarking.

Make it quick, simple and compliant to buy from the G-CloudStandardised, simplified, compliant transacting at minimal cost to all parties.

Create an open market for each category A competitive open market, with limited barriers to entry, that ensures thatsuppliers can deliver and scale what is being sold.

Encourage and enable re-use A commercial model where the crown is treated as a single customer, and where the collaboration, sharing and re-use of services, licenses, assets and IP is incentivised for both government and supplier.

Provide a mechanism to manage the process Ensure that all parties adhere to G-Cloud rules and principles, with a clearly defined arbitration process, and assurance that all parties interests are represented fairly.

Encourage compliance as the default positionEstablish a viable market through the encouragement of compliance (anddiscouragement of non-compliance)

Provide a clear commercial road map for transition Encourage incumbent providers to transition service where desirable, to quickly meet OEP targets.

Key Commercials Principles – A Reminder

‘The 3 Rules’ of the Government Cloud

No up front investment -

PAYG

No term lock-in

No volume lock-in

20

21

Elastic

Friction free

Procurement friendly

Characteristics:

Today

Hundreds of public sector data centres running to different standards;- some at capacity limits, others with unused space.

“Delivering Public Sector ICT services from the optimum number of high performing, energy-efficient, resilient, cost-effective and standards based data centres”

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Data Centre Consolidation

End point

Significant Central Government DC reduction by 2020, and a reduction of 80% across the wider Public Sector.

Goals• Reduce to an optimum number of modern,

resilient, efficient and secure data centres that may also act as infrastructure for the G-Cloud.

• We want to maximise the amount of consolidation to help the Public Sector achieve savings.

Public Cloud: Services and infrastructure provided off-site over the Internet

Private Cloud: Services and infrastructure maintained on a private network

Hybrid Cloud: A variety of public and private options. Each aspect of the business uses the most efficient environment

Cloud environments

Introduction to Foundation Delivery Partners

Foundation Delivery Partners (FDPs) will be “Public Sector bodies who have volunteered to build the initial G-Cloud services”

Services being Considered:

‒ Web Hosting and Content Management

‒ Infrastructure as a Service

‒ Public Cloud Services

‒ Collaboration Tools

‒ Secure Email

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G-Cloud, isn’t one thing: It has five “worlds”: Hosting, Testing, Sharing, Web, SME. Departments want and need different things so G-Cloud needs to offer them flexibility to make the offer compelling…

“Hosting world”My computer systems are fine, I just want to close my data centres and use yours.

Give me economies of scale, security and growth, reduce my capex need

“Testing world”

I don’t want to buy computers to test new systems, can I rent them from you?“Shared world”

ERP – HR/ Finance

DirectGov

Gateway & ID

BusinessLink

Shared App

What can be shared, should be shared. Common shared systems for all too use.

data.gov “SMEworld”

I want to use your G-Cloud to offer services to my non Government customers. UK tax growth, innovation

“Web world”Online/web services to employees/ citizens and business

Apps

So where does the Application Store for Government fit in? It’s a bad name, think of an eBay for Government, but with a twist…

Hosting Testing Shared Web SME

Data Storage

Processing Capacity

Security, Resilience, Support

Software design, development , testing and integration tools/ components

A choice of “technology stack” vendors

Government Applications Store“eBay”

Government Applications Store“eBay”

App

App App

App App

App

It Includes this:•Classifieds, Buy it now, Auctions Suppliers/ SME’s can have their own

store front•Anyone can be in the store•Marketing is cheap•SME’s don’t need capital to “prove” their software… they can test it on the G-Cloud•No SI lock-in•No Technology stack lock-in

Any “application” from any supplier can be deployed on a common infrastructure using any back end technology stack (the lines)

It is pay for use, there is no lock-in to long term software licence contacts

The infrastructure provider handles security and scalability. Think of it as the electricity grid. They don't decide what you do with it

It potentially provides a development and delivery vehicle for SME’s to all their products globally, generating UK tax income and innovation

We need ICT to enable:• Community empowerment: giving local councils

and neighbourhoods more power to take decisions and shape their area

• Opening up public services: enabling charities, social enterprises, private companies and employee-owned co-operatives to compete to offer people high quality services

• Social action: encouraging and enabling people to play a more active part in society

WHAT DOES SUCCESS LOOK LIKE?(OUTWARD FACING)

Community Empowerment

• Reducing the barriers that prevent SME & other organisations participation in Government ICT

• Opening data and application interfaces to encourage businesses and social providers to serve new market opportunities

Growing a community economy with a diverse range of providers

Opening up public sector provision

Opening the development of public services to the ideas and solutions of a diverse range of service providers

Opening up data and encouraging citizens

and businesses to innovate new services

and solution

Technology will empower communities by

providing access to information and local knowledge which will inform local solutions

Greater transparency and simpler channels for accessing data and

government procurement tender

opportunities

Planning for the

Y Generation

Personal Data

Social action using social media

Open and accessible

forums

Greater transparency

will build citizen trust

Policy developed in consultation with citizens

Increased efficiency

Digitally enabled

citizen/govt engagement & collaboration (social media, e-petitions &

etc)

Technology is an enabler – not an end in itself

Technology is an enabler – not an end in itself

Technology is an enabler – not an end in itself

Thank You

NOT A STATEMENT OF GOVERNMENT POLICY