The ramifications of Britain’s decision to leave the EU are, as yet, unknown. While a weaker pound might be good news for exporters, the reality is that the vast majority of our technology is imported.
US vendors generally price their hardware and software costs in US dollars. The pound is at a 31-year low against the dollar, and this currency chasm is forcing technology providers to re-evaluate their pricing strategy in both the UK and Europe, the Middle East, and Africa (EMEA).
If you consider that 17 out of the top 20 enterprise technology providers in the world are headquartered in the United States, it doesn’t take a world-class economist to realise that IT spending will be impacted over the coming years.
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Not only are price rises inevitable, but they’re already happening. Hewlett Packard, Dell, and other leading vendors have already introduced blanket price increases in the UK. Experts have suggested that it’s only a matter of time before Microsoft follows suit.
Weathering the storm
In times of financial uncertainty, it makes sense for businesses of all shapes and sizes to review their spending strategy. Organisations should be doubling down on cost optimisation efforts, in order to save money, simplify operations and speed up time to value. In that vein, there has never been a better time to consider cloud-based services such as Office 365.
Frisby comments: “Cloud services are ideally suited to helping companies deal with uncertainty. If IT is in need of a refresh, it makes financial sense to move to the cloud and an OPEX model, rather than making a significant CAPEX investment.”
Office 365 from Cobweb virtually eliminates capital costs and provides pay-as-you-go flexibility. By shifting your communications infrastructure off-premises, and adopting a subscription-based model, your cash-flow will never be threatened by unforeseen events or volatile market conditions. By signing up to Office 365 now, you can effectively lock your company into existing prices, should Microsoft decide to increase subscription costs in the future.
“There is a 12-month price guarantee with all Microsoft cloud services,” says Frisby. “So if you buy today, the price you pay is set for the next 12 months.”
Keep calm and carry on
We all know that uncertainty is poison to the markets. And as the UK will remain part of the EU for at least the next two years, that uncertainty isn’t going anywhere fast. As legislators begin to hammer out agreements over trade relationships, the long-term implications will slowly reveal themselves.
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In the here and now, it is essential that organisations keep calm and carry on. However, it is also important that business leaders look to optimise costs and drive efficiencies wherever possible, so that they can focus on steering the company through these uncertain times. With low capital expenditure and flexible scaling, Office 365 from Cobweb provides organisations with a fully managed, next-generation productivity platform.
And with US technology firms such as Microsoft in the process of reviewing their UK pricing strategy, businesses would be well advised to act quickly, in order to circumvent the inevitability of price rises.
Michael Frisby, Managing Director, Cobweb Solutions
Michael’s early fascination with technology led him to a BSc in Computing. With over 20 years of IT and cloud sales and business development experience with PA Consulting, HP and Microsoft, Michael’s expertise lies in combining technology and customer requirements into commercial solutions. At Cobweb, he is responsible for leading the company's transition as a value-add cloud aggregator. He previously lead Microsoft’s SMB Managed Reseller channel across Western Europe, accelerating the transition to selling cloud services, and building the Office 365 Syndication business to one million users. He is an enthusiastic squash player and avid Formula 1 fan.