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Posted by Manish Bahl on May 22, 2012
On May 15, 2012, the Infocomm Development Authority (IDA) of Singapore announced that it would award its much-awaited externally hosted g-cloud infrastructure five-year tender to SingTel. My colleague Jennifer Belissent and I published a report on g-cloud opportunities in Asia Pacific late last year that highlighted Singapore as one of the governments leading the way toward g-cloud adoption in the region.
Some key highlights from the Singapore g-cloud contract:
Based on our discussion with various vendors, Forrester believes that security, resiliency, and scalability of the central g-cloud were IDA’s key priorities when selecting a vendor. SingTel appears to have been the safest local bet for the government, as it has an end-to-end cloud story (IaaS, PaaS, SaaS) bundled strongly with network connectivity and security.
What This G-Cloud Contract Means To SingTel: Building A Strong Business Model To Ensure Revenue Stream
It will not be easy for SingTel to make the g-cloud contract profitable, especially in the absence of any commitment to minimum g-cloud usage or a minimum number of subscribers on the part of Singapore government. In addition, the success of g-cloud implementations largely depends on integrated collaborative efforts from government agencies, which is often a challenge. SingTel will take at least a year to get the infrastructure up and running and will have a limited time frame to recover its investment thereafter.
Getting government agencies to subscribe to the central platform will be the most challenging task for SingTel. To overcome this challenge, they’ll need to work closely with IDA, government organizations, conduct training programs, develop innovative services, and guide internal teams and partners to lead g-cloud engagements with the Singapore government. Also, we believe IDA will support SingTel by encouraging government entities to subscribe to central g-cloud infrastructure. Some key areas on which SingTel can be more focused:
The success of the Singapore g-cloud project largely depends on the experience of government agencies in a shared services environment and incentives that the government plans to provide to agencies to ensure maximum participation. Moreover, moving to g-cloud is a paradigm shift for the Singapore government; most would prefer to continue working with an initial vendor (SingTel) than getting a new vendor once the old contract expires. Nevertheless, a lot will depend upon ‘experience’ that SingTel provides to government entities on this initial project. Any issue with g-cloud infrastructure project will push SingTel on a back-seat in front of the government. It will be interesting to see how SingTel executes its strategy to make the Singapore central g-cloud project successful.
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