Showing posts with label Denise McDonagh. Show all posts
Showing posts with label Denise McDonagh. Show all posts

Friday, 28 June 2013

G-Cloud – how to win

Francis Maude, the Cabinet Office minister, made an important speech yesterday.

The speech is covered on his award-winning GOV.UK website – Minister Francis Maude described how government is moving into a "new world" of technology procurement by opening up opportunities to SMEs [small and medium-sized enterprises].

Every step of his argument is contentious.

Let's leave that for another day ...

... and content ourselves here with noting that, one way and another, Mr Maude gets round to saying that "one of our most successful innovations is the delivery of the G-Cloud framework, which embraces open procedures. This is a step change in the way government buys IT. It’s quicker, cheaper, more competitive and more accessible to SMEs ... As a result, of the 700 successful suppliers on the framework – 83% are SMEs" and:
For example, the Home office saved 83% on a hosting contract by contracting with Skyscape. Skyscape is an SME providing hosting and other IT support services – and were one of the first accredited suppliers on G-Cloud. They started as a small start-up with 6 people - and now employ over 30 as a direct result of the business they get through G-Cloud.
Out of 700 candidates, Mr Maude chooses Skyscape for his example.

Why?

Skyscape was only incorporated on 3 May 2011. Just over two years ago. Many SMEs have been established for much longer and have a track record that can be properly evaluated.

How did Skyscape get accredited to G-Cloud?

With no track record, it's a mystery – as Mr Maude says, "this is a step change in the way government buys IT".

Not only were Skyscape accredited, they started winning contracts. With HMRC. And the MOD. And the Government Digital Service. And, as noted in Mr Maude's example, with the Home Office.

That's four chunky contracts that established SMEs failed to win. Instead, they went to Skyscape which, as at 31 March 2012, had sales of £44,416, which cost them £327,320, they'd spent £956,965 on administration and the balance sheet shows negative net assets of £1,240,833.

Is that what Mr Maude means when he says that G-Cloud is "quicker, cheaper, more competitive and more accessible to SMEs"?

What's the trick? How do you beat the G-Cloud competition – 699 of the world's finest – when you've only got £1,000 of share capital, all controlled by one man, when nobody's ever heard of you and you've never done anything except run up debts of £1.2 million?

You'd like to know?

You'd like to know why you lost?

Why the contract wasn't accessible to you after all, even though you have a hard-won track record of success?

Here's a guess.

Take a look at one of Skyscape's press releases. Their very first press release. You don't have to go far back, obviously. Just to 11 November 2011:
SKYSCAPE CLOUD SERVICES APPOINTS COMMERCIAL DIRECTOR

November 11, 2011
Skyscape Cloud Services appoints Commercial Director to oversee G-Cloud delivery.

Skyscape Cloud Services Limited, ‘the easy to adopt, easy to use and easy to leave’ assured Cloud Services Company, today announced that Nicky Stewart, former G-Cloud Head of ICT Strategy Delivery has joined the company as Commercial Director.

Stewart held the position of head of ICT strategy at the Cabinet Office where she was responsible for leading a team of public and private sector organisations to develop the commercial strategy for G-Cloud, data centre consolidation and the government application store.

In this newly created position Stewart will work with public sector organisations and the Skyscape Alliance to ensure that the company’s commercial strategy is aligned to their goals and desired outcomes and that future innovative commercial models are developed.

“There is an enormous opportunity for the public sector to benefit from the dramatic cost-savings, improved agility and lower carbon footprint that cloud computing offers” said Nicky Stewart. “What I have seen in Skyscape is a unique ability to deliver this in an assured, secure and UK sovereign manner; with almost unlimited capacity”.

Phil Dawson, CEO of Skyscape adds “Nicky’s appointment will ensure that Skyscape’s services continue to be truly aligned to the goals of the G-Cloud initiative, with innovative commercial models and the associated financial benefits for the UK public sector. As an industry leading team we are very much looking forward to demonstrating the tremendous benefits that an elastic, on demand IT service will bring to UK public sector”
There's your lesson.

Choose your commercial director carefully – there's not much point bidding otherwise.

Make sure she's the former G-Cloud Head of ICT Strategy Delivery, and you're away.

Simples.

----------

Updated 25.4.14

This matter has now been aired by James Silver in Wired magazine, 11 April 2014, please see Each cabinet office PC costs UK taxpayers £7,000 a year. Why?.

Apparently DMossEsq is wrong:
When this alleged conflict of interest is put to Bracken, he laughs: "I don't know who Nicky Stewart is, so I've no idea," he says. "We face a systematic problem in the civil service of having a revolving door, usually outwards back to large systems integrators. We can't just tell people in government that you can't work for suppliers. [But we can] do a lot to make sure this doesn't happen, by not handing out massive contracts and then having our best brains and people who know our services going to the places who are delivering them back to us."
and:
Simon Hansford, CTO of Skyscape, responded to Wired: "Nicky has never held a sales role within Skyscape, or any other organisation. Nicky uses her public-sector expertise, and her knowledge of how the UK government purchases, to ensure that Skyscape develops its policies, principles and services in a way that aligns with government ICT strategy principles and meets the needs of the UK public sector. All of Skyscape's business is won through fair and open competition and Skyscape's success comes down to its disruptive business model."
So it remains a mystery how Skyscape won several prestigious central government contracts against established competition before it had even filed its first set of accounts with Companies House.

G-Cloud – how to win

Francis Maude, the Cabinet Office minister, made an important speech yesterday.

The speech is covered on his award-winning GOV.UK website – Minister Francis Maude described how government is moving into a "new world" of technology procurement by opening up opportunities to SMEs [small and medium-sized enterprises].

Every step of his argument is contentious.

Let's leave that for another day ...

... and content ourselves here with noting that, one way and another, Mr Maude gets round to saying that "one of our most successful innovations is the delivery of the G-Cloud framework, which embraces open procedures. This is a step change in the way government buys IT. It’s quicker, cheaper, more competitive and more accessible to SMEs ... As a result, of the 700 successful suppliers on the framework – 83% are SMEs" and:
For example, the Home office saved 83% on a hosting contract by contracting with Skyscape. Skyscape is an SME providing hosting and other IT support services – and were one of the first accredited suppliers on G-Cloud. They started as a small start-up with 6 people - and now employ over 30 as a direct result of the business they get through G-Cloud.
Out of 700 candidates, Mr Maude chooses Skyscape for his example.

Why?

Thursday, 27 June 2013

The Tragedy of the Commons

Public cloud benefits
outweigh security and data sovereignty risks,
says head of Parliament IT

Back in the 1970s, few organisations could afford their own computer. Timesharing bureaux grew up as a result. You'd nip round to your local IBM or Burroughs or ICL bureau with a deck of punched cards and a couple of tapes and come back with a printout. Timesharing wasn't cheap. But it made computing a bit more widely affordable.

That all changed with the advent of microcomputers and cheap high-speed telecommunications. The timesharing bureaux went out of business during the 1980s.

30 years later, they're back. Cloud computing suppliers are the timesharing bureaux de nos jours.

It's the same pitch. Outsourcing to a cloud computing supplier is cheaper than running your own data centre. There's more flexibility. You can get up and running more quickly. Backup and security are handled by dedicated experts and not by your own staff.

(Of course, prices could go up once there's no alternative to the cloud. And the cloud computing suppliers' backup and security staff could turn out to be just as flaky as your own. But these points are rarely made. Your attention is distracted by the modern and exciting hippy lure of the web, which is somehow deemed to be a good in itself.)

Outsourcing in government IT has been going on for decades. During which time an oligopoly of systems integrators (SIs) has developed in the UK and has allegedly grown used to charging the government eye-wateringly disproportionate fees for their services.

The SIs operate expensive data centres. Shifting to the government cloud (G-Cloud), it is hoped, will cut costs hugely while at the same time reducing development lead times and improving the response to change.

That's the pitch. That's the picture which is drawn for you to admire. And if that's all there was to it, there could hardly be any objection to cloud computing.

... the Houses of Parliament [are] now in the process
of moving a number of applications to the public cloud
as part of plans to create a ‘digital parliament’

From the dept of useless statistics:
  • 325 posts have been published on this blog, starting on 3 October 2011.
  • 61 of them are tagged "G-Cloud".
Clearly, DMossesq thinks there is something more to it, some important problem with cloud computing that needs to be communicated to readers.

He is not alone.

The OECD think that "cloud computing creates security problems in the form of loss of confidentiality if authentication is not robust and loss of service if internet connectivity is unavailable or the supplier is in financial difficulties".

ENISA think that "its adoption should be limited to non-sensitive or non-critical applications and in the context of a defined strategy for cloud adoption which should include a clear exit strategy".

Larry Ellison, the President of Oracle, says "maybe I'm an idiot, but I have no idea what anyone is talking about. What is it? It's complete gibberish. It's insane. When is this idiocy going to stop?".

Richard Stallman, venerable IT person, says "cloud computing [is] simply a trap aimed at forcing more people to buy into locked, proprietary systems that [will] cost them more and more over time ... It's stupidity. It's worse than stupidity: it's a marketing hype campaign".

Sergey Brin, one of the founders of Google, "acknowledged that some people were anxious about the amount of their data that was now in the reach of US authorities because it sits on Google's servers. He said the company was periodically forced to hand over data and sometimes prevented by legal restrictions from even notifying users that it had done so".

Gordon Frazer, managing director of Microsoft UK, "gave the first admission that cloud data — regardless of where it is in the world — is not protected against the USA PATRIOT Act".

... there were challenges around
the legal requirements of where data is stored,
explained Joan Miller, Director of Parliamentary ICT,
... at the
Think G-Cloud event in London.

Then there's Mayer Brown, the US lawyers, who tell us that "US law enforcement authorities may serve FISA Orders, NSLs, warrants or subpoenas on any cloud service provider that is US based, has a US office, or conducts systematic or continuous US business—even if the data is stored outside the United States".

And, further, "US law enforcement authorities may serve FISA Orders, NSLs, warrants or subpoenas on any cloud service customer that is US based, has a US branch, or conducts systematic or continuous US business—even if the data is stored outside the United States".

There's the indefatigable Caspar Bowden, former chief privacy adviser to Microsoft Europe, who has issued more warnings of the coming war than Cassandra, see for example Experts warn on wire-tapping of the cloud.

And there's the larger-than-life Kim Dotcom whose cloud computing company, megaupload.com, was put out of business by the FBI.

“The big outstanding element was data sovereignty,”
said Miller. “We needed to know
what was happening to that data in the cloud,
and that anything that happened to that data
was in our control.”

Which is where we get to the nub of the cloud computing problem.

Customers of megaupload.com had their data hosted in the cloud by Carpathia, acting under contract to megaupload.com. When the business was shut down, the customers lost access to their data which, in some cases, imperils their business.

Kyle Goodwin is one of these customers and his lawyers say "the [US] government maintains that Mr. Goodwin lost his property rights in his data by storing it on a cloud computing service ... both the contract between Megaupload and Mr. Goodwin ... and the contract between Megaupload and the server host, Carpathia ..., likely limit any property interest he may have in his data".

Sign a cloud computing contract in other words and you lose the rights to your property.

You lose control of it.

“We were thinking we have to go back ...
and make sure that what we have done to measure the risk
is adequate to deal with ... the American government’s use of data 
...
In fact, we are reassured 
that everything we thought about
is still covered in the work we have already done.”

You already knew that – the media report the activities of hackers every day. Even the US military seem to be helpless in the face of cyberattacks allegedly carried out by the Chinese. You knew that the web is a dangerous place to store your data. There is no such thing as a secure website. "Secure website" is an oxymoron.

Cloud computing adds to the risks:
  • The website is no longer in-house.
  • The staff who operate the equipment are not on your payroll and have not been vetted by you.
  • Your contractor will have sub-contractors, like Carpathia, which makes the line of command longer.
  • And, thanks to the internet, your data can pop up on servers anywhere in the world, in or out of the jurisdiction of English law.
And as we have discovered this month thanks to Edward Snowden, you also need to know that the National Security Agency in the US and the UK's GCHQ will also have access to the data in the cloud and may share it with anyone.

The advocates of cloud computing know all that. They know about the loss of control and the hacking. And yet they persist.

According to Miller
much of the data held by the Houses of Parliament
is actually relatively low risk.
She explained that, other than in certain circumstances,
the majority of the data is already destined for the public domain.

If your lawyers promise to keep your data confidential and then store it in the cloud, you can fire them. That threat is sufficient to force all but the mad to try hard to keep your data confidential.

It is the tragedy of the commons that that incentive doesn't work with the UK public sector.

You won't catch the US losing control of their data if they can help it, nor China, nor Russia, nor Germany – GCHQ surveillance: Germany blasts UK over mass monitoring. Those are states that clearly aim to survive.

But in the UK, local government, central government and now Parliament itself seem to be determined knowingly to risk storing our data in the cloud. They are abdicating their sovereignty and with it their responsibility. Has the state lost the will to survive?

----------

(Hat tip: The tragedy of the commons)
(Hat tip: Matthew Finnegan from whom the big italic quotations above are taken)
(Hat tip: Glyn Moody)
(See also House of Lords Management Board Minutes 16 January 2013)
(And Think G-Cloud 2013)

----------

Update 3.3.14

Last June when the post above was written we were assured that the security arrangements for the UK parliamentary website are adequate.

Just under nine months later, what do we learn?
The official website of the UK Parliament contained basic flaws that left it vulnerable to hacking, a programmer has discovered.

In a well-known loophole that has now been closed, the internal search engine on www.parliament.uk allowed users to enter computer code that meant it displayed images, video and even requests for passwords where the results would ordinarily appear.
See Revealed: key UK websites vulnerable to hackers in today's Telegraph.

From today's Telegraph
don't worry,
just their little joke
"Basic flaw"?

"Well-known loophole"?

The Telegraph are talking about the website. Or are they talking about Joan Miller, Director of Parliamentary ICT? And all the other officials in Westminster and Whitehall who just can't take security seriously, headed by Public Servant of the Year ex-Guardian man Mike Bracken CBE?

Public Servant of the Year ex-Guardian man Mike Bracken CBE, you will remember, is the executive director of the Government Digital Service. He is the "head of digital", as they say, for the whole of Whitehall. And, setting a dubious example, he told a conference last October that security ought to be relaxed because he'd just had a daughter. He was so tired as a result that he couldn't remember the answers to all the Whitehall security questions he had to answer to use his account:


And as for Ms Miller, Director of Parliamentary ICT, it's the old story – just because someone tells you a website is secure doesn't mean it's true. Even if your interlocutor has a technical- and senior-sounding job title and works for the most respected organisation in the world.

On-line security is like unicorns.

And if that website is in the cloud, forget it.


Updated 4.4.14

Terence Eden, the blogger who discovered the security hole in the UK Parliament website and brought it to their attention, is too polite to use the word "muppet". Instead, he says:
The UK Parliament website is pretty great. It houses a huge amount of historical information, lets people easily see what's happening in the Commons and the Lords, and is run by some really clever people.

That's why it's so depressing to see such a basic error as this XSS flaw in their search engine.
He goes on to explain how the website security weakness could be exploited, explaining the procedures step by step and giving examples.

This is the first in a series he hopes to publish on what he calls The Unsecured State. Perhaps Whitehall and Westminster will take note.


Updated 7.4.14

Joan Miller steps down from role as director of parliamentary ICT

The Tragedy of the Commons

Public cloud benefits
outweigh security and data sovereignty risks,
says head of Parliament IT

Back in the 1970s, few organisations could afford their own computer. Timesharing bureaux grew up as a result. You'd nip round to your local IBM or Burroughs or ICL bureau with a deck of punched cards and a couple of tapes and come back with a printout. Timesharing wasn't cheap. But it made computing a bit more widely affordable.

That all changed with the advent of microcomputers and cheap high-speed telecommunications. The timesharing bureaux went out of business during the 1980s.

30 years later, they're back. Cloud computing suppliers are the timesharing bureaux de nos jours.

Thursday, 6 June 2013

3 questions about GDS's bailiwick

The Major Projects Authority (MPA) has, as noted, delivered its public verdict on G-Cloud – amber/red.

G-Cloud is the major project designed to reduce government IT costs by outsourcing to cloud service suppliers (Skyscape et al) who currently charge less than the usual suspects, the systems integrators (CapGemini et al).

It's a worrying verdict. This is the MPA's definition of amber/red:
Successful delivery of the project is in doubt, with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed, and whether resolution is feasible.
G-Cloud was until 1 June 2013 the responsibility of the G-Cloud team, half a dozen individuals or less, plus the Government Procurement Service.

"Urgent action" was needed, according to the MPA, and urgent action was taken – from that date onwards, responsibility for G-Cloud has moved to the Government Digital Service (GDS).

GDS is responsible for several other major projects, which come under the general heading "digital by default".

We know the verdict of four professors on the chances of digital-by-default being delivered – it is beyond GDS's competence. Amber/red. Or just plain red. When they write "GDS" in the following quotations, the professors mean "government digital strategy", which is written by the Government Digital Service:
... it is not clear how realistic this ideal is ... brevity cannot be an excuse for lack of detail, explanation, and precision ... It is impossible with the detail provided to form any reasonable view of how this key activity will be performed ... there is an urgent need for standards to be developed and agreed ... he had no practical understanding of how to use this strategy to have positive impact on his team’s work; We suspect he is not alone in this view ... The GDS shows no evidence that it is aware or has taken account of the impact of such thinking ... The GDS must avoid falling into the trap of an overly-simplistic response ... Open source solutions are neither free to administer and support, nor are they the most cost-effective answer in all situations ... rapidly changing services will deter the takeup of digital services, not encourage it ... The GDS is remarkably (perhaps alarmingly) silent on the issue of how to coordinate SMEs in project delivery ... We see little discussion of a concrete and practical change management process to support the “digital by default” strategy in the current GDS. We view this as a potentially fatal omission ... the principles on which the current GDS is based centre on too narrow a view of how to attain those benefits, and lack focus on the major adjustment in culture, processes, and technologies that must underpin ... this view is much too simplistic and highly risky ... there is very little detail about how such goals will be achieved, or the broader cultural impact those changes represent ... a lack of consistency in interpretation of how to enact the GDS ... It is not clearly stated in the GDS who is managing the execution process across the 18 UK Government departments to coordinate and assess progress.
But what is the MPA's verdict? Again as noted, we don't know – it hasn't been published.

Which is odd. GDS is part of the Cabinet Office and the Cabinet Office is the custodian of the Coalition government's transparency programme, please see clause 16 in the Coalition programme for government:
16. GOVERNMENT TRANSPARENCY
The Government believes that we need to throw open the doors of public bodies, to enable the public to hold politicians and public bodies to account. We also recognise that this will help to deliver better value for money in public spending, and help us achieve our aim of cutting the record deficit.
GDS's doors remain locked shut.

It doesn't help that the MPA was plucked from the Treasury (where it used to be the Office for Government Commerce) and re-sited in the Cabinet Office.

Three questions:
  • Now that G-Cloud is in GDS's ever-expanding bailiwick, will that be used as an excuse to stop publishing MPA verdicts on it?
  • Would that be an unintended consequence of G-Cloud's move to GDS?
  • Or is it the unstated purpose of the move?

3 questions about GDS's bailiwick

The Major Projects Authority (MPA) has, as noted, delivered its public verdict on G-Cloud – amber/red.

G-Cloud is the major project designed to reduce government IT costs by outsourcing to cloud service suppliers (Skyscape et al) who currently charge less than the usual suspects, the systems integrators (CapGemini et al).

It's a worrying verdict. This is the MPA's definition of amber/red:
Successful delivery of the project is in doubt, with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed, and whether resolution is feasible.

Tuesday, 28 May 2013

GDS? Who?

Whitehall has a pitiful record when it comes to investing public money. Think of the National Programme for IT, the NHS black hole into which £6 billion of our money disappeared without trace. Or possibly £12 billion. No-one seems to be sure.

Mindful of which, we now have something called the Major Projects Authority (MPA), a Whitehall unit which keeps tabs on where the money's going and how likely we are to see any return. The MPA issues red-amber-green verdicts on our investments. Green is good news. Red means kiss goodbye to the money.

These verdicts have been kept secret until now but following lobbying, not least by Tony Collins, in the spirit of open government, the MPA have recently published their verdicts on 191 major government projects with a combined lifetime value of £353.7 billion.

The verdicts are categorised by department. Looking at the Cabinet Office projects:
  • We see for example that the Electoral Registration Transformation Programme gets an amber light.
    – An old friend on this blog, this is the programme which seeks to compile a national identity register, which is the opposite of the Coalition government's stated policy.
    – It seeks to ensure that the register is complete and accurate by illegally matching electoral records against National Insurance Number records, among others. N [please see update below]
    – The data-matching pilots were a complete failure – in one ward in Ceredigion, only 18% of electoral records could be matched (Table C1, p.31).
    – There will nevertheless be a value-for-money illegal national data-matching exercise carried out this summer and apparently a new electoral register in time for the next general election. N [please see update below]
    – Lifetime budget: £218 million. MPA verdict? Amber.
  • We see also that another old friend, G-Cloud, gets an amber/red signal.
    Strange. Only the other day, G-Cloud won an award, the prestigious public cloud project of the year award.
    – Cloud computing, remember, is the quickest way of losing control of our data yet discovered.
    – It's not as though there's a lack of customers for G-Cloud – public bodies are pretty well being ordered to use it, through the Cloud First policy. It's unlikely that the project can fail for lack of take-up, so why the amber/red?
    – Any sign of a lack of spending on G-Cloud, and the programme director, Denise McDonagh, can simply buy something herself as she happens to be IT Director at the Home Office and disposes of a considerable budget. Only the other day (it may have been the same other day), she did just that and bumped up the sales figures by handing Skyscape the £1.5 million contract to host the heir to the Criminal Records Bureau.
    – That's Skyscape, the one-man band that barely existed a year ago but somehow beat the long-established competition in a completely fair selection process.
    – Lifetime budget, according to the MPA: £0.58 million. MPA verdict? Amber/red.
  • Which brings us to our oldest friend, the Government Digital Service (GDS).
    – They've got their award-winning GOV.UK project. 24 ministerial departments have been pointlessly and only partially transferred to GOV.UK and several hundred other government bodies are yet to be pointlessly and only partially transferred.
    – They're working on Individual Electoral Registration. Illegally. See above. N [please see update below]
    – They promised to have identity assurance fully operational by March 2013 for 21 million benefit claimants and failed. That leaves DWP's Universal Credit flailing and ditto the BIS midata nonsense.
    – We have eight "identity providers" in the UK with nothing to do as a result.
    – GDS's digital-by-default plan is holed below the waterline (fatally according to four professors) not least because millions of us Brits have never used the web.
    – On 28 July 2011, GDS promised to sort this out with their assisted digital sticking plaster. The best part of two years later, on 23 May 2013, they finally got round to starting to chat about the problem.
    – 56 members of parliament have signed an early day motion to debate digital-by-default.
    – GDS are also meant to replace the cumbersome-but-functional Government Gateway at some point, although what with, they've never said.
    – The mandarins keep expressing their support for GDS, Lord knows why.
    – But what about the MPA verdict, you ask? There isn't one. There just isn't one. None of these GDS projects is major? Or maybe GDS doesn't exist? Or the MPA ran out of colours? One way and another, if you're looking for openness, hard cheese.
----------

Updated 29 May 2013 12:35
N Data-matching was illegal. With the passing of the Electoral Registration and Administration Act on 31 January 2013, it is assumed to be no longer illegal. The suggestion that it is illegal is now presumably false and misleading. Please see SCOOP? IER, sackcloth, ashes and Rip Van Winkle.

Updated 28.5.14

The other day, the MPA, the Major projects Authority, published their second report, for 2013-14.

Projects don't come much more major than GDS's mission to transform the UK government. GDS (the Government Digital Service) are the show, they tell us, the only solution to the delivery crisis and if it wasn't for them there'd be riots in the streets.

In the interests of openness, what is the MPA's verdict on GDS? How are GDS getting on? Red? Surely not. Amber? Green? That's more like it.

Sadly, no. There's not a mention of GDS. HS2, yes. GDS, no.

GDS? Who?

Whitehall has a pitiful record when it comes to investing public money. Think of the National Programme for IT, the NHS black hole into which £6 billion of our money disappeared without trace. Or possibly £12 billion. No-one seems to be sure.

Mindful of which, we now have something called the Major Projects Authority (MPA), a Whitehall unit which keeps tabs on where the money's going and how likely we are to see any return. The MPA issues red-amber-green verdicts on our investments. Green is good news. Red means kiss goodbye to the money.

Thursday, 23 May 2013

CloudStore and OJEU

The question was asked yesterday Is CloudStore entirely legal? and an impressively prompt response was received which deserves equal prominence:
Anonymous said...

*sigh*

The G-Cloud framework *is* procured through the OJEU process (every 6 months, hence we are on G-Cloud III now - see the official notice here: http://ted.europa.eu/udl?uri=TED:NOTICE:14199-2013:TEXT:EN:HTML&src=0). Once a framework has been established, public sector organisations can procure from that framework without the need for OJEU (because the suppliers on that framework have already been through the process). Page 7 of the document you quote has the relevant guidance (note that a mini-competition can be run by the buyer against the framework).

This is exactly the same as any one of the 104 framework agreements that the Government currently has in place (see: http://gps.cabinetoffice.gov.uk/i-am-buyer/find-a-product-or-service). Also note that this isn't just the UK - in 2010, 21,500 framework agreements were awarded across the EU (see: http://ec.europa.eu/internal_market/publicprocurement/docs/modernising_rules/cost-effectiveness_en.pdf)

22 May 2013 15:38
The Page 7 citation leads to:
Framework Agreements - These can be used for repeat but irregular purchases for example stationery supplies, legal services, building repairs. Generally they are of no more than four years’ duration.  There are four main types, single-supplier, multi-supplier, single user, multi-user.  Suppliers are selected following an initial OJEU notice, in the case of multi-suppliers (no less than three) subsequent mini-competitions are used to select winning contracts.  The same selection and award criteria used when setting up the framework agreement must be used when procuring services from this agreement.  Provided the agreement is compliant with these requirements, pre-existing framework agreements may be used to select suppliers to the project.  Contracting Authorities utilising a framework agreement need to ensure that they are eligible to make use of it and that the framework agreement has been properly established
There may be all sorts of problems with Whitehall's cloud computing strategy but so flagrantly infringing OJEU that even DMossEsq can spot it doesn't seem to be one of them.

----------

Updated 23 May 2013 12:04 p.m.
That is the case, at least, as long as you first agree that arranging to host the entire public administration of the country in the cloud is like making "irregular purchases for example stationery supplies, legal services, building repairs".

Take an example. See Skyscape bags biggest deal on G-Cloud EVER. Skyscape will be hosting the heir to the Criminal Records Bureau. How much like ordering the paper clips is that?

Updated 24 May 2013 19:45 p.m.
Even if the definition of "irregular services" is being stretched a bit, clearly OJEC think it's legal. So they won't object.

Who would?

Answer, maybe some of the long-established cloud services suppliers with impressive track records whose bids lost against Skyscape, a company that won contracts from GDS, the MOD and HMRC almost before it existed, please see Skyscape – would you invest £4 million? Thousands haven't., and who have now won a big contract from the Home Office. How did Skyscape manage to be accredited, let alone win?

CloudStore and OJEU

The question was asked yesterday Is CloudStore entirely legal? and an impressively prompt response was received which deserves equal prominence:
Anonymous said...

*sigh*

The G-Cloud framework *is* procured through the OJEU process (every 6 months, hence we are on G-Cloud III now - see the official notice here: http://ted.europa.eu/udl?uri=TED:NOTICE:14199-2013:TEXT:EN:HTML&src=0). Once a framework has been established, public sector organisations can procure from that framework without the need for OJEU (because the suppliers on that framework have already been through the process). Page 7 of the document you quote has the relevant guidance (note that a mini-competition can be run by the buyer against the framework).

This is exactly the same as any one of the 104 framework agreements that the Government currently has in place (see: http://gps.cabinetoffice.gov.uk/i-am-buyer/find-a-product-or-service). Also note that this isn't just the UK - in 2010, 21,500 framework agreements were awarded across the EU (see: http://ec.europa.eu/internal_market/publicprocurement/docs/modernising_rules/cost-effectiveness_en.pdf)

22 May 2013 15:38
The Page 7 citation leads to:
Framework Agreements - These can be used for repeat but irregular purchases for example stationery supplies, legal services, building repairs. Generally they are of no more than four years’ duration.  There are four main types, single-supplier, multi-supplier, single user, multi-user.  Suppliers are selected following an initial OJEU notice, in the case of multi-suppliers (no less than three) subsequent mini-competitions are used to select winning contracts.  The same selection and award criteria used when setting up the framework agreement must be used when procuring services from this agreement.  Provided the agreement is compliant with these requirements, pre-existing framework agreements may be used to select suppliers to the project.  Contracting Authorities utilising a framework agreement need to ensure that they are eligible to make use of it and that the framework agreement has been properly established
There may be all sorts of problems with Whitehall's cloud computing strategy but so flagrantly infringing OJEU that even DMossEsq can spot it doesn't seem to be one of them.

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Updated 23 May 2013 12:04 p.m.
That is the case, at least, as long as you first agree that arranging to host the entire public administration of the country in the cloud is like making "irregular purchases for example stationery supplies, legal services, building repairs".

Take an example. See Skyscape bags biggest deal on G-Cloud EVER. Skyscape will be hosting the heir to the Criminal Records Bureau. How much like ordering the paper clips is that?

Updated 24 May 2013 19:45 p.m.
Even if the definition of "irregular services" is being stretched a bit, clearly OJEC think it's legal. So they won't object.

Who would?

Answer, maybe some of the long-established cloud services suppliers with impressive track records whose bids lost against Skyscape, a company that won contracts from GDS, the MOD and HMRC almost before it existed, please see Skyscape – would you invest £4 million? Thousands haven't., and who have now won a big contract from the Home Office. How did Skyscape manage to be accredited, let alone win?

Wednesday, 22 May 2013

Is CloudStore entirely legal?

Hosting GOV.UK in the cloud to cost GDS record-breaking £600,000

Government Digital Service signed a deal with Skyscape last month

By Derek du Preez | Computerworld UK | Published 10:29, 10 October 12

(GDS) infrastructure-as-a-service (IaaS) deal with Skyscape to host single domain website GOV.UK, which was procured through the G-Cloud, is worth an estimated £600,000.
There are rules for us members of the EU. Procurement rules. Procurement rules we have to abide by:
EC Procurement Thresholds
The European public contracts directive (2004/18/EC) applies to public authorities including, amongst others, government departments, local authorities and NHS Authorities and Trusts. The European utilities contracts directive (2004/17/EC) applies to certain utility companies operating in the Energy, Water, and Transport sectors.
Click on the link and you'll see that above certain threshold values, contracts can't be awarded without competition. They have to be announced – an onerous business – in OJEU, the Official Journal of the European Union, and all suppliers have to be able to bid. Please see also ERDF National Procurement Requirements – (ERDF-GN-1-004), a document issued jointly by the European Union and the Department for Communities and Local Government (p.2):
Robust and transparent procurement is required to ensure that Grant Recipients:
  • Consider value for money (VFM)
  • Maximise the efficient use of public money and;
  • Maintain competitiveness and fairness across the EU.
The above considerations should be applied on all occasions, regardless of whether or not the value of the procurement is above or below the OJEU thresholds and regardless of whether or not the Grant Recipient is a contracting authority subject to public procurement rules.
There are various thresholds:

PUBLIC CONTRACTS REGULATIONS 2006 - FROM 1 JANUARY 2012

SUPPLIESSERVICESWORKS
Entities listed in Schedule 1£113,057
(€130,000)
£113,057
(€130,000)
£4,348,350
(€5,000,000)
Other public sector contracting authorities£173,934
(€200,000)
£173,934
(€200,000)
£4,348,350
(€5,000,000)
Indicative Notices£652,253
(€750,000)
£652,253
(€750,000)
£4,348,350
(€5,000,000)
Small lots£69,574
(€80,000)
£69,574
(€80,000)
£869,670
(€1,000,000)
Is GDS's £600,000 contract with Skyscape above the relevant threshold? If so, is the award of the contract through CloudStore illegal? Should the invitation to tender have been published in OJEU?

The UK's G-Cloud team are currently having a bit of a purple patch, congratulating themselves on government departments and local authorities now beginning to use CloudStore for millions of pounds-worth of procurements:
G-Cloud celebrates three major milestones

Posted on May 4, 2013 by denisemcdonagh

A little over a year since we launched the CloudStore, we are starting to see sales gain a real head of steam, with nearly 1,000 invoiced purchases, sales of over £18.2m to the end of March, and many more going through. At the Home Office alone,  where I am IT director, we are in the middle of putting through more than £6m of orders, and I’m expecting to see those numbers keep on rising, both in my department and across government. For getting us this far, I’d like to say a huge thanks to my team and to all you G-Cloud supporters out there, not least our growing number of suppliers.
Are all these contracts legal or are some of them side-stepping the European public contracts directive (2004/18/EC)?

Is CloudStore entirely legal?

Hosting GOV.UK in the cloud to cost GDS record-breaking £600,000

Government Digital Service signed a deal with Skyscape last month

By Derek du Preez | Computerworld UK | Published 10:29, 10 October 12

(GDS) infrastructure-as-a-service (IaaS) deal with Skyscape to host single domain website GOV.UK, which was procured through the G-Cloud, is worth an estimated £600,000.
There are rules for us members of the EU. Procurement rules. Procurement rules we have to abide by:
EC Procurement Thresholds
The European public contracts directive (2004/18/EC) applies to public authorities including, amongst others, government departments, local authorities and NHS Authorities and Trusts. The European utilities contracts directive (2004/17/EC) applies to certain utility companies operating in the Energy, Water, and Transport sectors.

Monday, 1 April 2013

Cloud computing – away with the fairies

We all know that the present arrangements for government computing in the UK can't go on. We're in the pan fat.

Instead, we should adopt cloud computing. That would solve the problem, say many commentators. They're well-meaning, no doubt. But wouldn't cloud computing simply move us into the fire?

It certainly looks like it. Cloud computing is meant to be a sort of utility – you get rid of the overheads and only pay for what you use. It sounds eminently sensible until you remember what's happening to your utility bills right now – they're going through the roof.

But that wouldn't happen with cloud computing, say the well-meaners. The G-Cloud people in Whitehall, for example, claim to believe that the suppliers of cloud services want nothing more than to cut their prices and increase the quality of service.

Amazon, for example. They're the biggest suppliers of cloud in the world. They wouldn't put their prices up. Would they?

They just did. Amazon's fees hike for third-party traders provokes fury:
'Marketplace' traders in UK and major European markets to be hit by fee hikes of up to 70% after Easter, following similar rises in US ...

Amazon is facing a revolt from small traders as the internet retailer – which describes itself as "Earth's most customer-centric" company – plans to impose a wave of fee rises on third parties who use its network to sell consumer electronics, automotive parts and other goods in the UK and across Europe ...

The fee increases – which in some cases amount to as much as 70% – have left traders furious, although none are prepared to go on the record because they are concerned about how Amazon will respond.

Cloud computing – away with the fairies

We all know that the present arrangements for government computing in the UK can't go on. We're in the pan fat.

Instead, we should adopt cloud computing. That would solve the problem, say many commentators. They're well-meaning, no doubt. But wouldn't cloud computing simply move us into the fire?

It certainly looks like it. Cloud computing is meant to be a sort of utility – you get rid of the overheads and only pay for what you use. It sounds eminently sensible until you remember what's happening to your utility bills right now – they're going through the roof.

But that wouldn't happen with cloud computing, say the well-meaners. The G-Cloud people in Whitehall, for example, claim to believe that the suppliers of cloud services want nothing more than to cut their prices and increase the quality of service.

Amazon, for example. They're the biggest suppliers of cloud in the world. They wouldn't put their prices up. Would they?

Thursday, 14 February 2013

Skyscape – would you invest £4 million? Thousands haven't.

There are other cloud computing suppliers than Skyscape.
Some of them comparatively well-established.
What is Whitehall doing?
How did the Cabinet Office and the Government Procurement Service
manage to give G-Cloud accreditation to Skyscape?
And how did the MOD, HMRC and GDS
decide that Skyscape is a safe home for our data?

Skyscape's first accounts appeared on the Companies House website today.

Is Mr Jeremy Robin Sanders still in ultimate control of the company?

Yes.

Except that it's become a bit indirect. He set up a company called Virtual Infrastructure Group Ltd (VIG) in June 2012. Then in October 2012 he transferred all his Skyscape shares into VIG. So VIG controls Skyscape. But Mr Sanders controls VIG.

How is Skyscape financed?

Not by equity, that's for sure. VIG has £180 £1,180 of ordinary shares and Skyscape has £1,000.

Mr Sanders lent some money to Skyscape and the balance outstanding at 31 March 2012 was £93,333. But that's not a lot to fund an operation meant to be able to support the Government Digital Service (GDS), HMRC and MOD contracts let to Skyscape. So what other money is there available?

Answer, in November 2012 – well after getting the GDS and HMRC contracts – a loan note financing exercise was launched. £12 million-worth on offer, of which £8 million-worth had been subscribed for by 7 February 2013, the date on which the Skyscape accounts were signed by Mr Sanders and the auditors, Grant Thornton.

Who are these subscribers/investors? We don't know.

What we do know is that, as set out in the Particulars of a mortgage or charge filed with Companies House on 14 November 2012, if Skyscape goes into receivership or administration or ..., then the noteholders get all the assets, which may include GDS's data (our data), HMRC's data (our data) and the MOD's data (our data).

And who's managing the loan notes? That's the other thing we know. Jeffrey Paul Thomas (15 active companies to his name and 45 inactive ones).

Who?

You remember Jeffrey. He's the man who once held some shares in Skyscape but transferred them to Jeremy. He's the man at ARK Continuity, the data centre specialist, with the Rt Hon The Baroness Manningham-Buller on board, funded by Real Estate Venture Capital Partners LLP (RevCap).

The business review in the Skyscape accounts makes it clear that Skyscape was set up explicitly as a speculative venture designed to exploit changes in UK government IT procurement, particularly G-Cloud, the move to cloud computing.

How's it going?

By 31 March 2012 Skyscape had sales of £44,416 which cost them £327,320 and they'd spent £956,965 on administration. There's no detailed P&L in the accounts, but there is a balance sheet showing negative net assets of £1,240,833.

A bit precarious. Just what you'd expect from a speculative venture. It might come right. You never know. Bit worrying that they couldn't get all the notes away, prospective investors not overly impressed.

Still, there's Whitehall in the background. They could make Skyscape a success. As long as Skyscape is well enough managed actually to cope with a lot of contracts.

And there's Cisco and VMware and EMC and QinetiQ in the background, the Skyscape Cloud Alliance. Skyscape is their Trojan horse. They'll extend their credit terms for a while yet but their patience won't be infinite.

G-Cloud, on which Skyscape largely depends – that's one of the Principal Risks And Uncertainties listed in the accounts – released some sales data last week. It's very early days yet. But between April and December 2012 G-Cloud sold just under £6 million of services. Emergn Ltd got 24% of those sales, BJSS 14% and Ninian 9%. 50 suppliers on the list, everyone else is an also-ran so far, including Skyscape with 2%.

Patience. Tested.

And remember. At some stage, G-Cloud may admit the big boys, Amazon and Google.

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(NB DMossEsq is absolutely not licensed to give investment advice.)

Skyscape – would you invest £4 million? Thousands haven't.

There are other cloud computing suppliers than Skyscape.
Some of them comparatively well-established.
What is Whitehall doing?
How did the Cabinet Office and the Government Procurement Service
manage to give G-Cloud accreditation to Skyscape?
And how did the MOD, HMRC and GDS
decide that Skyscape is a safe home for our data?

Skyscape's first accounts appeared on the Companies House website today.

Is Mr Jeremy Robin Sanders still in ultimate control of the company?

Yes.

Except that it's become a bit indirect. He set up a company called Virtual Infrastructure Group Ltd (VIG) in June 2012. Then in October 2012 he transferred all his Skyscape shares into VIG. So VIG controls Skyscape. But Mr Sanders controls VIG.

How is Skyscape financed?

Not by equity, that's for sure. VIG has £180 £1,180 of ordinary shares and Skyscape has £1,000.