Whitehall sticks knife deeper into legacy IT with data centre deal
Cabinet Office creates data centre venture with Ark, as it moves further away from outsourcing

The Cabinet Office has created a joint venture to host government data all in one place, saving an estimated 105 million over seven years.
Crown Hosting Data Centres is the lovechild of Ark Data Centres and the Cabinet Office, and will host public sector data that's not already up in the cloud.
The creation of the company is Whitehall's attempt to tackle individual departments' tendency to outsource hosting or even build their own data centres, all at varying but generally expensive costs.
"It doesn't make sense for departments to host their servers in different ways and at different costs, and in the past Whitehall wasn't even sure how many of these centres there were," said Francis Maude, minister for the Cabinet Office.
"With this new joint venture, we will save millions and be able to access the necessary commercial and technical skills in the market to create a thriving new business that will deliver better services and allow government to share in its future success."
In fact, users will be able to use the service on a pay for what you use' basis, in order to avoid being locked into long-term contracts.
Ovum analyst Chris Pennell told IT Pro: "My understanding is that it is aimed at hoovering up all non-cloud based hosting and data centre requirements that reside in legacy contracts.
Get the ITPro daily newsletter
Sign up today and you will receive a free copy of our Future Focus 2025 report - the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives
"The approach is interesting, as it is effectively saying we do not believe the traditional approach has worked."
Initial customers are the Department for Work and Pensions, the Home Office and the Highways Agency, but the Cabinet Office plans to open the service up to all departments, and the wider public sector.
"The joint venture company will simplify the data centre services selection process in government and further drive the unbundling of large legacy contracts," said Steve Hall, CEO at Crown Hosting Data Centres.
Maude has previously stated that Whitehall would be free of its last legacy contract by 2020, as the government aims to replace outsourced IT with Government-as-a-Platform (GaaP).
This initiative will see services largely created in-house, and Ovum analyst Chris Pennell said at the time that government could become its own monopoly supplier.
The latest news may add evidence to that claim, with the government retaining a 25 per cent stake in Crown Hosting Data Centres.
Ark will own a 75 per cent share of the joint venture, after signing a 495,000, two-year deal with the Ministry of Defence in December 2014 to provide data centre services.
"We are extremely proud to be selected as the joint venture partner and look forward to working together to drive real transformational change across the provision of the Government's data centre services," said Huw Owen, Ark CEO. "We are committed to realising the huge potential cost benefits for the UK public purse."
-
Cleo attack victim list grows as Hertz confirms customer data stolen
News Hertz has confirmed it suffered a data breach as a result of the Cleo zero-day vulnerability in late 2024, with the car rental giant warning that customer data was stolen.
By Ross Kelly
-
Lateral moves in tech: Why leaders should support employee mobility
In-depth Encouraging staff to switch roles can have long-term benefits for skills in the tech sector
By Keri Allan
-
Podcast Transcript: What’s so hard about public sector IT?
IT Pro Podcast Read the full transcript for this episode of the IT Pro Podcast
By IT Pro
-
The IT Pro Podcast: What’s so hard about public sector IT?
IT Pro Podcast It’s a complex task, but government and public sector IT is ripe for transformation
By IT Pro
-
Ed Vaizey: Tech City has become a beacon for UK business
News Minister also says government is ready to embrace change to drive innovation
By Aaron Lee
-
AGS Airports outsources IT support to focus on innovation
Case Studies AGS signs five-year deal with Getronics after leaving Heathrow Holdings
By Joe Curtis
-
MoD sticks with HP-led Atlas Consortium for £1.5bn IT upgrade
In-depth Deals exceed Cabinet Office £100m contract red lines but could change tech for 200,000 users
By Joe Curtis
-
DWP extends HP hosting deal under Accord contract
News Department is experiencing issues transitioning IT to another hosting service, analyst claims
By Joe Curtis
-
G-Cloud 4 suppliers announced
News Cabinet Office reveals details of latest procurement framework iteration.
By Jane McCallion
-
Government encourages 'cloud-first' strategy against backdrop of G-cloud iii launch
News Cloud should be first port of call from now on, according to Cabinet Office.
By Jane McCallion