UKFast Jones: Brits won't be 'duped' by US giants' UK datacentres
Lawrence Jones opens up to CRN about UKFast's "best year ever"
Lawrence Jones has said British businesses will not be "duped" by big US tech giants that open UK datacentres promising data privacy, as he opens up on UKFast's "best year" ever.
Over the last 12 months, Microsoft, AWS and IBM have all either unveiled or announced plans for new UK datacentres, claiming the moves would help meet customer compliance requirements and address concerns about data residency.
The data regulation landscape has changed considerably over the last few years, with Safe Harbour axed in favour of the new Privacy Shield, and new GDPR regulations due May 2018. The UK's decision to leave the EU has further muddied the waters, on top of long-running concerns about data privacy and government snooping.
Jones (pictured above) said that UKFast, which is a British company offering companies local services, is in the best position to meet customers' concerns, not big US firms.
"I think it's a smart move to be trying to localise," he said, referring to IBM and Microsoft's moves. "It makes sense. But it's certainly not going to help their whole data laws [story] because it doesn't matter where you store it - as American businesses, they have certain responsibilities to the American government on data. They can host it in Timbuktu or Iceland and the US government will still have access to that data. So it's really a hell of an investment if it's to give the impression your data is safe because it's in Britain. That means absolutely nothing. I think the British population are smart and tech savvy and they're certainly not going to be duped on that."
Microsoft and IBM were both unavailable to comment immediately, but when announcing the new facilities, Microsoft said it is "committed to helping keep customer data secure, maintain privacy and meet compliance regulations", and IBM quoted a fintech client which said data security and residency are two key concerns which the vendor now addresses.
Jones said that having "UK" in its company name helps with the "buy British" message.
"I would like to say that was strategic," he joked. "It's becoming more and more relevant. I am just an extraordinarily passionate Brit. When I set up UKFast with my wife, I really wanted to make it clear that it wasn't just about one region; it's the whole of the UK. We've got clients all over the world - it's not been restrictive. It's obviously a good thing for businesses that want to host in the UK and have a UK partner. We're certainly well placed. I do think there is more focus on buying British - especially with dollar prices being so high."
Bob Tarzey (pictured right), director at analyst Quocirca, told CRN that Jones could be "overstating his case" on big US tech firms and welcomed the steps they've taken on privacy. He said although Brexit could muddy the waters further, the moves made by American tech firms should be applauded.
"I think the big US cloud providers and other software companies have shown commitment to standing up to the US against interference, regardless of where the customers are. They have a clear understanding that if they operate in the EU, they need to be able to give guarantees to customers about data residency for compliance. I think they've made big steps."
Business boom
Jones said 2016 was "the best year we've ever had", boasting a "stellar" year for its flagship eCloud range. Recurring revenue from the UK-based cloud service jumped 38 per cent annually to £13.79m.
Jones pointed to growth and efficiency as his two priorities in the new year.
"Efficiency can mean launching services faster, answering customer queries quicker, building better software that helps customers," he said. "We're always looking to improve the things that are not working quite well enough - the most broken elements of the business. Efficiency is a big thing for us. In 2016 we've added about 40 devops and R&D people, so we're up to about 60 now, which is a sizeable chunk of a business our size. I see that expanding significantly, maybe even doubling. If I could find another 60 in 2017, I'd take them on. But it's a tall order because they're the kinds of people who are sought after by everyone."