Microsoft will make adjustments to Azure pricing in British pound (22% increase)
telegraph.co.uk
telegraph.co.uk
what does that mean?
UK wages in pounds will probably stay the same, so for an international customer the price of labor here will go down by 20%.
The losers are people here who are going to watch food and utilities prices increase much faster than their wages.
Microsoft to raise some UK prices by up to 22 percent over Brexit (engadget.com)
10 points by benjyclay 37 days ago
[1] https://news.ycombinator.com/item?id=12777877No reason not to raise the prices if the market will bear it, but I wonder if Brexit is actually a great help to their short-term profit margin?
The UK government has a lot of infra based on Azure. The MOD and NHS for starters.
Smooth. Very smooth. Another indicator that the rabid, vulgar libertarians in the Brexiteer ranks are more than happy to use Brexit to strain public services more in order to justify private services.
Man oh man am I glad to be paid in dollars working remotely for a US company right now.
UK.gov actually has a semi-inhouse cloud called Crown Hosting that might win new business from Azure. They don't offer the functionality needed to produce an infrastructure that adapts to load but that doesn't matter - gov clients don't really get cloud and typically want static computer systems duplicating an on prem infrastructure without the support costs.
http://www.telegraph.co.uk/technology/2016/11/15/google-to-c...
Also, recently pound has gone up (from 1.11 against euro to 1.19 now). It's definitely not the pre-brexit state but imagine it slowly crawls up back. Would you expect the price increases, in some time, to roll back?
How?
The wedge is already driven between skilled professionals who can compete on the international market, and therefore have price-setting ability, versus people who have no market power and can be squeezed and threatened with the unemployment regime. Unskilled or marginal workers may end up starving.
No, this is the Greece effect. Trade balance has been terrible for years. Now the financial services industry is under threat. While there's a lot of negative things you could say about them, at least they've brought in foreign money to keep the accounts balanced. In order for the balance of trade to recover, imports have to fall. This means that the part of your living standards which depends on imports (including Azure) is going to fall.
And unlike countries that can export home-grown food and/or raw materials, most UK exports are the end of a long supply chain that starts outside the country.
So even on exports, its margins are a lot lower than those of countries that produce raw materials and food.
Brexit will make this worse.
The UK can't continue like this indefinitely (it's not the hegemon, like the US) because when you spend more than you earn you have to make up the difference by borrowing money or devaluing your own currency.
The consequences are predictable - prices rise, inflation rises, the cycle repeats, and eventually the economy breaks down altogether after sovereign default becomes a real threat.
At that point the UK will either have to go full North Korea, or will need to strip everyone of their savings, raise taxes - and will still need a bailout.
Having "taken back sovereignty" the country will be on the hook to the banks for decades.
Hell the bank of england has been printing money for 5 years and if that didn't cause runaway inflation I don't see how the pound weakning somewhat is going too.
way below the bank of england's target of 2%