22% Increase Microsft Cloud in the UK as of January 2017

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uunix
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22% Increase Microsft Cloud in the UK as of January 2017

Unread postby uunix » Fri Dec 02, 2016 1:59 pm

Fluctuation in the £ since brexit is what is being blamed.. Twenty Fecking Two Per Fecking Cent...

UK public having internet usage logged by ISP (except government workers) for 12 months.

And what are we brits complaining about? Toblerone have increased the gaps in the triangles thus we get less chocolate!


BTW.. out of all of this, yes the Toblerone affects me once a year at Christmas and I'm naffed off about it!
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Re: 22% Increase Microsft Cloud in the UK as of January 2017

Unread postby kramlq » Sat Dec 03, 2016 10:32 am

Didn't the currency actually tank by close to 20% (at peak) since Brexit though? It would be a huge ask for just about any business of any size to try and absorb that on behalf of its customers without killing margins. As big as they are, Microsoft are not a charity.

Many of the UK services we use at work (e.g. financial data feeds) have implemented some pretty steep increases from 2016 Q4 or 2017 as well. Other providers in continental Europe haven't increased prices so much by comparison, as they are not as exposed to sterling. Shop around where possible. We've switched a couple to take advantage of this (e.g. to Germany).

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Re: 22% Increase Microsft Cloud in the UK as of January 2017

Unread postby jimmer » Tue Jan 10, 2017 1:55 am

Have similar story with my server hosting people: Kimsufi/OVH. They are also raising prices. But why? After all, their servers and infrastructure are in Roubaix, France and in Canadia, the land of maple syrup and ice hockey. Seems to me it has little to do with Brexit, more to do with 'opportunity'.

Toblerone issue is serious by the way. Have switched to Maltesers instead. They seem to be on perpetual offer at my local Sainsbury's.

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Re: 22% Increase Microsft Cloud in the UK as of January 2017

Unread postby jan-jaap » Tue Jan 10, 2017 2:25 am

jimmer wrote:Have similar story with my server hosting people: Kimsufi/OVH. They are also raising prices. But why? After all, their servers and infrastructure are in Roubaix, France and in Canadia, the land of maple syrup and ice hockey. Seems to me it has little to do with Brexit, more to do with 'opportunity'.

Kimsufi/OVH is not a UK company. If they have expenses in France and Canada they have to pay them in the local currency. You're paying them in GBP. GBP tanks. Costs for service when paid in GBP go up. Exactly how is this unexpected?
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Re: 22% Increase Microsft Cloud in the UK as of January 2017

Unread postby jimmer » Tue Jan 10, 2017 2:45 am

Unexpected becasue I buy from them in Euro's not in UKP.

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Re: 22% Increase Microsft Cloud in the UK as of January 2017

Unread postby kramlq » Tue Jan 10, 2017 6:30 am

@Jimmer
I can't speak definitely of that company or your situation, but any connections to GBP can be tricky right now.

An example (in theory): If they were selling to you, then they are probably liable for submitting VAT on the transaction in GBP under a UK VAT registration even if they have no physical presence there. At the moment the GBP rate is at a low, so a transaction with you would mean they are liable for VAT valued from EUR to GBP at a predefined (but very low right now) rate. That GBP rate is set at a particular point in time, and the GBP VAT amount is owed later at the end of the month or quarter. If operating in EUR, this leaves them extremely exposed to gains in the live GBP currency rate, and is something they need to plan for. For example, if tomorrow, some event the market views as very positive occurs (e.g. Davis/Fox/Johnson got fired) GBP would probably make a huge gain. It now costing more in EUR terms to settle that accrued VAT bill in GBP. Equally, companies usually in a VAT refund position are hugely exposed to sterling falling further in the time it takes for the GBP refund to be issued and get converted back to EUR. The GBP currency has been very volatile of late, so probably everybody is getting hit with bigger than normal losses at some stage.


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