Microsoft Hikes U.K. Prices of Enterprise Products Amid Brexit
"...From Jan. 1, prices of on-premises enterprise software will be hiked 13 percent, while those of cloud services will increase 22 percent, all to realign with euro-based contracts, the company said in a blog post. Consumer software or cloud products won’t be affected, Microsoft said.
The slump of the pound since the Brexit vote has translated into a series of price hikes for consumers in the U.K. In the technology space, British consumers found out last month they’d pay as much as 16 percent more for the latest iPhone models compared to previous versions, a bigger inflation than for buyers in the U.S. or Germany.
The pound has fallen more than 16% against the dollar since the Brexit vote on June 23 and has been struggling this month amid discussions on what the divorce will mean for Britain’s access to Europe’s single market."
https://www.bloomberg.com/news/artic...ts-amid-brexit
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Originally Posted by Damien
I think it's bordering on utter delusion if, in addition to getting all these excellent trade deals, they'll pay us £13 billion for the chance to do so.
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Tariffs will penalise both the EU and UK but politicians are driven by politics not commerce. The EU won't want to encourage the break-up of the bloc by agreeing a uniquely favourable deal with the UK. And May doesn't look keen on accepting the principle of freedom of movement as this would antagonise her party. But's let hope that information like the tariffs calculations encourages a mutually beneficial deal.
More pressingly, exporters are increasing concerned about a key HMRC IT project.
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The Financial Times Should Britain leave the EU customs union, through which the bloc sets a common tariff, all imports and exports to the EU will require customs declarations and separate security checks. As a result, officials have sought to scale up the new customs system’s maximum capacity to 350m declarations a year, against approximately 50m filings now handled and 100m that the new system was originally designed to process.
Mindful of the poor history of big public-sector computer projects in the UK, industry groups are raising the alarm over the risk of mistakes in the three-year-old IT programme, which was facing difficulties even before Brexit.
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https://www.ft.com/content/3876648e-...b-70e3cabccfae