Daily Management Review

Tech Sector Defies Brexit Worries as IBM Invests in UK Data Centers


11/22/2016




Tech Sector Defies Brexit Worries as IBM Invests in UK Data Centers
Since the time that the United Kingdom voted to get out of the European Union, this is the third occasion that a global IT company has announced its decision to increase ots presence in the country. 
 
Following the likes of Facebook and Google which have already announced further investment in post Brexit UK, global IT group IBM has announced that it will triple the number of its cloud data centers in Britain. The company y made this announcement on Tuesday.
 
The corporate and public sector clients of the company are increasingly storing data and managing their businesses in the cloud and hence it has decided to build four new data centers to meet this growing demand.
 
The investment reflected the strength of the UK economy and the size of the opportunity in cloud computing, IBM Europe's general manger for cloud services, Sebastian Krause, said.
 
"UK customers truly understand the capabilities of cloud to drive innovation, to be more flexible on their business model, to have better insight for decision making, and to deliver better customer service," he said in an interview.
 
IBM sees no reason to change the course of action for itself as a result of the decision as the company had already made an evaluation of its cloud capacity in Britain even before the June "Brexit" vote, he said.
 
"Everyone has concluded the UK economy will continue to be very strong and there will be significant opportunities with or without Brexit," he said.
 
Against the possibility of Britain’s future relationship with the European Union, and in particular the ability to attract workers from across the trading bloc, the country’s enthusiasm for technology and a deep pool of talent, fueled by world class universities have been compared and balanced by bosses of large and small tech companies.
 
Companies including Google and Facebook have emphasized the importance of being able to attract the best people - hinting at importance of labor movement even as the company decided that the advantages of investing in post Brexit Britain outweigh the risks.
 
Customers such as travel group Thomson, which is owned by TUI, retailers Boots and Dixons Carphone, and National Grid, as well as the government will be served at the data centers in Britain as IBM increases its footprint in the country from two data centers to six, the company said. However the size of the investment was not disclosed by the company.
 
Brexit also creates uncertainty about Britain's future compliance with European data protection rules, which have recently been overhauled.
 
IBM had 10 data centers in continental Europe that it could also use if Britain did not adhere to any European standards in the future and the company was "well-equipped" for any post-Brexit scenario, Krause said.
 
(Source:www.reuters.com) 






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