Headlines are abuzz with post-Brexit rhetoric: “Falling pound” this, and “Price increase” that. For all the sensation the I-told-you-soers are creating about exiting the EU (of which the full effect won’t be felt for years), there is merit to the alarm.
[easy-tweet tweet=”For all the sensation the I-told-you-soers are creating about exiting the EU, there is merit to the alarm.” hashtags=”brexit, tech, cloud,”]
Foreign exchange rates are invariably affected by sentiment and, as such, companies paying in US dollars for their cloud services will have to fork out more. And where accounts are still paid locally in pounds, American-based cloud service providers (like Microsoft) will be getting fewer dollars when the money goes home. Some are responding by hiking prices of their cloud offering by up to 22 percent from January 2017.
This could have the nett effect of companies reducing their margins and possibly losing their competitive pricing edge. It has also been suggested that UK-based companies could consider relocating their headquarters closer to their mainland European customer bases. This could be especially relevant should the effects on visas start to be felt and if attracting overseas talent for jobs becomes strained.
Clouds, Yes, but silver linings also.
Viable UK-based alternatives
As far as cloud backup and storage providers go, there are plenty to choose from within the UK. They range from the Dropbox-type, home user-oriented cloud-based storage to the more elaborate enterprise-ready managed cloud backup services offered to corporates.
Staying within UK borders reduces the number of choices available a little but that doesn’t mean many of the top providers are out of reach. There are also many benefits to going local:
- Automatic compliance with data sovereignty laws. The Data Protection Act and other compliance mechanisms will be adjusted as time goes on and Brexit is implemented
- Avoiding surveillance by other sovereign states. Since other countries don’t have access or jurisdiction, your data privacy becomes more easily guaranteed.
- Logistical benefits. Whether it is to get technical support, having large data volumes couriered to site at short notice, or to renegotiate service contracts, being within easy travelling distance of your provider immediately makes for a more efficient working relationship.
[easy-tweet tweet=”When cloud backup services are under the same flag, your budget will be vulnerable to fewer risks” hashtags=”cloud, tech, business”]
Predictable costing models
When your cloud backup services are rendered under the same flag, your budget will be vulnerable to fewer risk factors – primarily foreign exchange fluctuations. In addition, cloud backup providers that function within the same socio-economic environment will also behave more predictably with their costing models, resulting in greater stability to your business’ overheads.
As a final tip, look for a provider that charges on a cost per gigabyte basis only. This allows you to only pay for what you use, without any unforeseen costs due to data transfer.
‘Paul started his career as a Lawyer in the UK with Shoosmiths and Harrison back in 1993 before realising this was not his vocation and decided to move into IT at the end of 1994. He subsequently joined Memory and then Shuttle Technology ending up as Business Development Director. In his current role, Paul is responsible for setting the strategic direction of the business and investigating and developing new business opportunities.’