Research Dashboard Login

What Brexit Means for London’s Multi-Tenant Datacenter & Hosting Markets

London is the largest metro market for multi-tenant datacenter and hosting services in Europe. Strong customer demand, plentiful supply and innovative service models reflect the UK’s status as an industry leader and early adopter. The Brexit vote, however, has called London’s status into question.

During this 45-minute webinar, Penny Jones, Senior Analyst, and Rory Duncan, Research Director for European Services, will:
• Discuss how Brexit has called into question London’s status as the first choice location for pan-European and international providers
• Outline the potential challenges Brexit poses to London’s colocation & hosting markets
• Explore the opportunities that London still presents for service providers, regardless of Brexit
Tags:
2305 Hits

Brexit implications for UK/EU mobile telecoms: choppy waters ahead

Analyst: Declan Lonergan

In a recent report, we assessed the implications of Brexit for the technology sector. This included potential effects on skills and people, research programs, datacenter location, privacy laws, siting of businesses, tariffs and taxes, grants, currencies, infrastructure and other areas. In this report, we focus on the mobile telecom sector specifically, to assess how Brexit will affect UK and EU markets and their participants. On balance, we believe uncertainty and its destabilizing effects – both at the macroeconomic level and for the telecom industry specifically – will outweigh any potential benefits that could arise, for example, in relation to greater regulatory sovereignty for the UK.

The 451 Take

The short-term uncertainty caused by Brexit will eventually give way to a different long-term operating reality. The competitive landscape for telcos will not be affected directly, at least not in the short term. None of the existing players is likely to re-evaluate its commitment to the market as an immediate response to the Brexit result. Similarly, the impact in areas like industry regulation and even mobile roaming charges are unlikely to materially change, even if the UK is excluded from the single market. There may even be some upside for the UK players, with the potential for telecom regulatory policies to be adapted more effectively to the specific needs of the UK market. But that's where the good news ends and uncertainty begins. Following the referendum result – and depending on the exact nature of the UK-EU separation – there are potential negative effects in relation to macroeconomic weakness, reduced demand for telecom services, constrained network investments, and more restrictive employment options. Eventually – as it always does – a new normal will emerge, but for the next two to three years at least, the UK telecom market is heading for choppy waters.

1106 Hits

Brexit: the danger of 'holidaying' your app abroad

Analyst: Owen Rogers

Britain's vote to leave the EU has sent shock waves across the world, with markets plummeting globally and uncertainty rife among investors. For cloud consumers, those at most risk are those that are located outside the US but that have chosen to consume cheaper US resources in an on-demand fashion. This is a fairly common scenario considering the US is, on average, 3% cheaper than the EU and up to 45% cheaper than Latin America. For preproduction or test/dev applications, on-demand enables experimentation without commitment, and a cheap location allows this to take place without the expense of hosting locally.

End users that have paid up front or made commitments in local currencies are most protected because the provider will take the brunt of currency fluctuations. However, those that buy resources as they need them are exposed to daily changes in currency markets, and these changes are not trivial. On the day of the referendum, £1 would buy 18.5 hours of a US small virtual machine based on Cloud Price Index data; today, that same pound will only buy 16 hours.

Will things get better? We dearly hope so; these may be short-term fluctuations. But in the longer term, new trade agreements and data legislation will have some impact on end users' access to global cloud services. This impact will also hit all other MSPs and vendors. The British public (and it appears its politicians) is as confused as anyone about what the future may hold. Ultimately, time will tell.

Learn more about our Cloud Price Index here.
1034 Hits

Subscribers

Forgotten password?

Not a Subscriber

Apply for a trial account today to obtain access to insight from 451 Research analysts worldwide and experience our products and services first hand.

Apply → Close

Browse By Sector

Select a sector from the list below.

Close
loading
Sector Browser Loading.