Implications of Brexit
With the UK voting for independence from the European Union there’s been a lot of uncertainty in the business community. While Brexit is not the decision that many businesses wanted, it is the democratic will of the nation and the first major impact to the UK economy is the fluctuating currency rates even before Article 50 has been invoked. As you can see from this graph the pound to dollar rate has actually been on the slide for the past year but with an unprecedented weakening of the pound to the US dollar exchange rate in the recent couple of weeks since the vote to leave.
Although pricing with Cloud providers like AWS and Google Cloud is already quite variable, this additional change in the currency rates can make the price changes quite dramatic as companies will seek to protect international profit margins and sustainability. Other of the big name hosting providers like Microsoft Azure and Digital Ocean can be considered a slightly safer bet in the short term as their services are billed in dollars although it is likely that their prices will have to go up eventually to accommodate this pricing drop. A vast majority of the technology sector works in US dollars, so it’s likely that we’ll see an flood of tech assets increasing in price over the next few weeks and months.
Some of the UK headquarter providers, like us at Nimbus, only have a few of our actual costs in dollars and therefore there should be very little change to our pricing.