Brexit: SMB Technology Companies Won’t Raise Britain Pricing
Unlike Microsoft (MSFT), several SMB technology companies that support MSPs say they don’t plan to raise prices in Britain. Cloud, software and hardware pricing models have been under pressure ever since Brexit — Britain’s decision to exit the European Union — surfaced in June 2016.
The British Pound has been clobbered, prompting Microsoft to confirm various price increases effective January 1, 2017. Some pundits think overall IT spending may fall in Britain as companies evaluate their employment plans in the country. The head of the British Bankers Association says some financial services firms may leave the country amid the fallout.
Still, the situation appears slightly different for SMB technology companies that support MSPs. In that scenario, many U.S. companies are just getting started with their European businesses. Autotask and various SolarWinds MSP businesses were first movers in the European market about five years ago or more, but most of the major RMM (remote monitoring and management), PSA (professional services automation) and BDR (backup and disaster recovery) providers have landed in and around London more recently.
ChannelE2E reached out to 10 SMB technology companies to see if their Britain pricing models will increase amid Brexit. Five companies have yet to reply. Four companies say they’ll hold the line on pricing but they declined to go into details. One company went on record to say have no plans to raise prices in Britain. “We have no intentions of increasing pricing,” said Rob Rae, VP of business development at Datto, which promotes data protection solutions to MSPs.
No doubt, Datto wants to make a good impression during the company’s DattoCon EMEA conference, set for this week in London. We’ll continue to track and share additional SMB vendor pricing strategies as we receive more responses.