Cloud firms insist prices won't rise thanks to Brexit

RedPixie and intY insist it is business as usual thanks to cloud model

Cloud firms have rushed to assure customers that their prices won't rise thanks to Brexit, as analysts warn that hardware resellers could face immediate hikes.

Cloud aggregator intY has issued a statement confirming that customers can continue to buy from its platform as usual, following the UK's decision to leave the EU last week.

"Our partners will not face an increase in prices for our monthly cloud services following Brexit," said chief operating officer Craig Joseph.

"With our existing and future cloud distribution business model, we have no borders. Since our inception, we have guaranteed a low-risk currency model where our pricing is set and traded in the currency that most suits our partners. We can reassure our partners that if they wish to trade in sterling, euros or US dollars, we will continue to sell in those local currencies.

"We are not in the business of hedging bets on currency. We are in the business of selling cloud software. Our customers can feel confident that prices will remain stable during this turbulent time."

The UK voted to leave the EU on Thursday and the day after, Canalys warned of immediate and sharp price rises as the pound's value plummeted to a 31-year low. Before the polls had closed, £1 was worth $1.48, but that fell to $1.34 in the immediate aftermath. It has recovered somewhat, and according to XE.com, is now worth $1.35 (1pm 29 June).

Simon Bullers, president of cloud firm RedPixie, agreed that nothing has changed and that Brexit could be an opportunity for the company.

"Everything [in terms of pricing] is still the same - we are in the cloud," he said. "If our cloud providers change, then yes, obviously we will have to worry about that, but no, we've not changed anything in our business except reaffirming that nothing has changed.

"On Friday we reassured staff what it means to our business. The truth is, in our opinion, it creates more opportunities. Nothing has changed from a business perspective. We did notice on Friday that all the vendors rang up and said we can't price anything because currency is flipping so much.

"The UK remains a part of the EU. People are forgetting that. Businesses can ponder what is going to happen but the lights are on and nothing has changed."