Buying Technology in a Post-Brexit World

It’s now been over four months since the British public voted to leave the EU, and whilst the reality of Brexit is still a way off, Britain has already begun to feel the effects of the momentous decision.

Following the vote on the 23rd June, the British pound fell almost immediately. Whilst many thought the currency would stabilise quickly once the details of Brexit became clear, the confusion over when – or even if – Brexit is actually going to happen has kept the pound plunging.

Tech Giants Hike Prices

The tech world has not been left unaffected by these changes. Recently, many tech giants have announced increases in UK tech prices, due to the post-Brexit pound drop.

Apple for example, quietly raised the prices of all of their Mac products in order to account for the new low exchange rate between the US dollar and pound sterling. Similarly, US computer-maker Dell, and Chinese smartphone company OnePlus, have both raised the prices of their products in the UK in response to Brexit; and Lenovo will also be increasing their UK prices by 10% from the 1st December.

It’s not just hardware that’s been affected, however. A recent survey by Computing has found that over 60 per cent of UK-based businesses have seen an increase in their cloud prices following Brexit. These increases can only be expected to continue, with Microsoft raising their cloud prices by 22%, and VMWare raising their licensing prices by 15% in the New Year.

Keep Calm and Carry On

Although Computing’s survey found that the majority of businesses will not be moving away from the Cloud in response to the exchange rate fluctuations, the price increases have undoubtedly left organisations worried.

There is a danger that organisations will feel compelled to buy unnecessary volumes [because of the price increases] – resulting in the purchases of licenses they don’t need, cloud volumes they will never utilise, and unnecessary extra pieces of hardware,” explains Ben Simpson, Senior Software Consultant at Trustmarque.

But the important thing is to stay calm. When it comes to both hardware and software, don’t let impending price increases scare you into making uninformed, rash decisions. Instead, take time to consider your options, speak to expert advisors, and make the smartest, most informed business decisions possible.

Some Practical Steps

Whilst the most sensible thing to do in times of uncertainty like this is keep calm and seek advice from experts like Trustmarque, there a few practical things to do to mitigate the impact of price increases.

For example, Trustmarque’s CTO, James Butler, advises considering vendors that offer price protection agreements, in order to delay the impact of an unstable pound:

Some vendors do offer agreements that will protect against price rises for a period,” explains Butler. “This is a sensible factor to investigate and consider as part of a commercial negotiation.

Similarly, Butler warns against putting all your technological eggs in one basket, as it were, and instead suggests looking into local technology providers as well as large, US vendors.

Organisations should also consider having a local option as part of their architecture, which won’t be affected by exchange rates,” he advises. “Having a number of different providers already available as options is also a good way of spreading and reducing risk.

Seeking Expert Advice

With our end-to-end capabilities, we can support you at every stage of your IT journey. Whether you want advice on which hardware to power your organisation with, how to purchase the right software licenses at the right price, or how to make sense of ever-changing cloud prices, Trustmarque’s team of experts is here to help.

Email us at today, and one of our experts will be in touch.



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