G-Cloud spending boosts UK SME Memset’s revenue

UK SME Memset saw its revenue from G-Cloud increase by 38% in six months due to public sector cloud initiatives

UK-based infrastructure as a service (IaaS) provider Memset saw its revenue from G-Cloud increase by 38% in just six months after winning cloud computing contracts from the Cabinet Office, Government Digital Service (GDS) and Home Office.

Memset reported that its total G-Cloud CloudStore spending surpassed £18.2m, £7m of which was recorded in March alone.

“It's great that G-Cloud is starting to work. Only a year ago we had negligible public sector business, and the explosive growth we are experiencing in that area is proof that G-Cloud is helping government make good on its promise that 25% of business will go to SMEs,” said Kate Craig-Wood, managing director of Memset. 

"Amid recession, this boost from public sector business is especially welcome,” she added.

The UK government's G-Cloud programme has a public cloud first policy, and Memset currently delivers IL2 government accreditation via the public cloud.

The government organisations are using the UK hosting provider’s Miniserver virtual servers, which are accredited to IL2.

With the third iteration of the G-Cloud framework – Giii – due in May, Craig-Wood said: “There were some teething problems with the first two iterations, but now those kinks are worked out, I hope we will see an increase in the rate of new suppliers joining the marketplace." 

The G-Cloud security accreditation challenge

Of the problems with the first two accreditations, gaining security accreditations was the biggest challenge, she told Computer Weekly.

“We are still waiting for IL2 accreditation on our Memstore and dedicated server products, which we originally submitted back in November. We have recently submitted our initial IL3 documentation set, but lack confidence in CESG's ability to turn it around in a timely manner,” said Craig-Wood.

Another issue is around acquiring a public service network (PSN) connection to be able to cater to government organisations. 

“You can no longer buy the old GSI connections. However, at present no PSN providers have been accredited to IL3. You can't deliver IL3 services over the public internet – it has to be via a private government network such as GSI, PNN, N3 or the network-of-networks, which is supposed to underpin G-Cloud, PSN. We can't even get pricing on PSN connectivity, which is creating significant and increasing problems, since we have numerous prospective government customers practically beating our door down,” she said.

Memset is currently pursuing IL3 accreditation, which would put it in a strong position to secure even more business in the CloudStore in the near future, especially with the government’s target for half of all new IT spending to be on public cloud services by 2015.

Currently, about 74% of G-Cloud suppliers are classed as SMEs.

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