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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.
Foreign exchange rates are invariably affected through 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. They’re responding by hiking prices of their cloud offering by up to 22% 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 their European customer bases. This could be especially relevant when the effects on visas start to be felt and when attracting overseas talent for jobs becomes strained.
Viable UK-based alternatives
As far as cloud backup 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-level managed cloud backup services offered to corporates.
Staying within UK borders limits your options somewhat but that doesn’t mean some of the top providers are out of reach. There are more benefits to going local:
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 per-use basis. This allows you to only pay for what you use.
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