Will Brexit Affect Cloud Computing & Server Market?

UK referendum may force to rethink the CIOs about data management & privacy policies. Shift From US to EU in Dedicated, Cloud Server & CDN is Significant After PRISM Scandal. Will Brexit Affect Cloud Computing & Server Market? Will Brexit Affect Cloud Computing & Server Market? Previously, we talked about the inclination towards Swiss Cloud for data security and data privacy. It is a million dollar’s question whether the large cloud computing vendors will get ready for the pause in U.K. data center build-outs or shift from other European countries to UK. America, due to their higher pricing, mix quality of skilled employees and specifically for the fear of Governmental data theft no longer so easy to say yes to the corporates.

Will Brexit Affect Cloud Computing & Server Market?

The question, indeed has no answer. Many experts now expect that the vote for the proposed referendum on United Kingdom membership of the European Union will bear a negative impact on IT spending and trade in IT products. At the same time, however, trying to remain calm and not to panic, to keep the impact as low as possible is expected from the British. Dedicated server market was sharply growing in the recent years. Germany being one of the important country. Specifically for the non-UK European service providers and start-ups difficulty is expected. Experts assume that UK will be removed from the standards of the digital single market. However a common digital single market, including with the UK must remain their main objective. Today, an International uniform rule set is a prerequisite for a functioning and powerful digital economy. For the companies from Germany, this means that they have to deal with different rules in the UK. Precisely for SMEs and start-ups that was often a strong point to use UK. Some also hypothesized that Ireland can also becomes the hub for the Western European cloud operations.

The EU has spread its protective shield also British consumers. It is highly likely that this protective shield is at least partially collapsed.” Bitkom also fears negative consequences for the data and consumer protection. Strict rules are always assumed by the EU and often had to be enforced against the resistance of the representatives of Great Britain.

In the past years, ICT equipment and consumer electronics worth €2.9 billion were delivered from only from Germany to the UK, which corresponds to eight percent of total ICT exports from Germany. Germany is just behind France’s second most important export country. According to some experts, it is certain that by the proposed referendum on United Kingdom’s membership of the European Union in trade will open a new bureaucracy on the enterprises.

What the Analysis Point is Not Favorable For UK Cloud Computing & Server Market

Gartner analysts originally assumed that the UK IT market will grow this year by 1.7 percent to a volume of 179.6 billion US dollars. This forecast is passé after the proposed referendum. Analysts have lowered their forecasts to between two and five percent. Gartner analysts speak of a clearly perceptible uncertainty which will continue in the coming months. This will also affect the high-tech spending across the whole West Europe.

The Forrester analysts expect that uncertainties regarding future immigration laws will lead to the exodus of talent. New experts from overseas would also prefer future continental Europe. Trade, financial, healthcare and tourism would probably including especially hard hit, according to them.

The economic and political impact will be short, medium and long-term. However, the decision to exit Britain from the EU could have an impact on IT suppliers and users in the other West European countries. From laboriously adopted EU privacy regulation on consumer protection rights and environmental protection guidelines, a variety of arrangements of the European Union are concerned by the proposed referendum. As the free exchange is limited, customer data may demand to adapt new cross-country consumer protection rights. Still it is unclear that how the future cooperation of the EU will look like with Britain.

Yet, It is Meaningless To Assume That Brexit Will Affect Cloud Computing & Server Market

UK has always been one of the most famous strategic locations for cloud providers intending to land on the Old World that have recently strengthened their presence by either renting space in the data center directly or by building their own infrastructure. A greater proportion of the British SMEs were embracing cloud technology than their counterparts elsewhere in the West Europe.