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Brexit Statement

As a managed service provider with the responsibility of supporting over 250 organisations with their IT, Akita keeps a keen eye on the business landscape.

It is for this reason that – based on available information – we have reviewed the potential impact of Brexit on our own business and operations.

In the short (1 year), medium (2-3 years) and long (5+ years) terms, Akita does not anticipate any practical or physical disruption to our ability to continue providing our services to any of our customers.

In the short and medium terms, we perceive a higher-than-average risk of increased prices for both hardware and licences. This is because of the volatility of the Pound, and its current tendency to be weaker than it was pre-referendum. 

In the longer term, there is no certain way to know how the weakness of the UK’s currency will affect hardware and software. Based on current estimations from the UK Government and other fiscal institutions, we expect the Pound to eventually settle at a rate that will be less competitive than it was before the referendum.

A less competitive Sterling rate would mean that both software licences and hardware will cost more because they are sourced from abroad. In the case of hardware, it is purchased from UK suppliers, but they purchase from overseas. 

In the case of Microsoft licences, the relationship between the Pound and the US Dollar directly affects our purchase prices. In both instances, it is likely that some or all of these cost increases would have to be passed on to our customers.

Neither leaving the EU with a deal or without one will have any measurable effect on Akita’s ability to continue delivering our services to you. The only anticipated ramifications would be higher software and hardware costs, as their associated prices would be controlled by international exchange rates.

We must emphasise that the negative aspects relating to costs are conjecture at this time due to the high degree of uncertainty about the coming months. That said, we believe our assertions on costs are logical based on the information currently available.

What we feel the need to emphasise however is that in times of extreme economic difficulty, Akita has proven that it can flourish. Since the last global economic crisis in 2007, Akita has continued to grow: nothing in the market which has been identified as placing that growth and profitability in jeopardy. In fact, should the UK economy fall into recession, as it seems likely to do, Akita expects to experience growth as we leverage our business agility and quality of service delivery to maximise every opportunity that presents itself. 

As a company, Akita has a large and varied customer base. In many ways, this insulates us from threats which would be keenly felt by organisations in other industries. We hope that our customers are similarly protected.

Should you wish to discuss specific concerns further, please get in touch.

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