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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)
=
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”
22
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
24
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