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Mallen also said that if other European countries
elect to follow suit with their own exits, there could be
disruption in Europe-based equities. But Mallen said
he doesn’t believe the Brexit, in isolation, will be nega-
tive either for the U.S. or for the United Kingdom. Ulti-
mately, Mallen says he believes the U.K. will become a
pseudo-member of the EU, similar to the relationships
Norway and Switzerland have with the EU.
“I believe it’s a positive move for the U.K.,
giving it more freedom to act independent of
EU governance,” Mallen said. “The U.K. has
more to offer the EU than the EU has to offer
the U.K.”
In terms of impact on the market, the at-
tention actually should be on the presidential
election, he added.
“As much as Brexit was a welcome reprieve
from the election, I believe that within weeks
the U.S. elections will become the primary glob-
al-market media focus and that will continue
through November,” Mallen says. “It promises
to be a volatile campaign that, I believe, will
impact global markets directly.”
Tech Company
Operational Worries
Despite positive outlooks such as Mallens,
others point out that there will almost certainly
be consequences for those that do business
with the U.K.
For tech companies, currency fluctuation is
at the center of much of the short-term con-
cern. As companies are looking to invest more
in overseas growth markets, a strong dollar works against
those efforts. According to Mark Mulligan, managing direc-
tor of MIDiA Research, “buying goods and services from
across the globe, not just Europe, looks set to become
more expensive for media and tech companies of all sizes
due to the weakening of the pound on the international cur-
rency markets. Though the flip side of a weakened pound
is that British goods are cheaper to buy, so export demand
could rise.”
The British pound hit its lowest point since 1985 right
after Brexit, losing 7 percent of its value against the dol-
lar, while the euro saw its biggest drop (16 percent) since
it was introduced in 1999. It recovered but has trended
weaker than before the vote.
Some companies have plans in place to combat this,
including Discovery, which said: “In the short-term and me-
dium-term, our currency hedging program will significantly
minimize the foreign exchange impact of the Brexit vote on
our financial performance.”
That said, it’s not just the big guys at risk. “There could
be countless implications for the U.K. media and [related]
sectors, but smaller companies such as independent
labels, independent production companies and tech start-
ups look set to be hardest hit,” Mulligan said.
For instance, companies are also evaluating whether
to keep outposts in the post-Brexit capital.
How do you think a Britain exit from the EU
would affect your company’s competitiveness
in UK and European markets?
CompTIA UK Members Respond to Brexit
Source; CompTIA
Are you in favour of Britain
leaving the EU?
Would your employment strategy
change if Britain were to leave
the EU?
Do you think US vendors will shift
their focus away from the UK if it
were to leave the EU?
Do you think Britain leaving
the EU would affect the purchsing
decisions of your clients
13%
6%
41%
31%
9%
Very positively
Positively
Neutral
Negatively
Very negatively
Source: CompTIA, among UK members
19% NET Positively
40% NET Negatively
If Britain were to leave the EU, how do you think it
would affect your company’s profitability?
16%
19%
28%
13%
22%
28%
9%
63%
47%
53%
66%
38%
Yes
Not sure
No
Yes
Not sure
No
Yes
Not sure
No
Yes
Not sure
No
9%
Very positively
15% NET Positively
Source: 451 Research
Channel-Oriented Revenue Expe
Opinions based on those expecting to ma
Estimated Global Cybersecurity Market
Deployment/integration
Infrastructure related
(i.e. networks, cloud)
Selling/Reselling loT products
Consulting/Advisory services
Complete solutions involving
HW + SW + services
Managed loT services
Cybersecurity/data loss
prevention/privacy
Data analytics/Business
intelligence
Repair/Troubleshooting/
Break-Fix
Custom app development
loT focus areas
(i.e. Smart Cities)
2015E
2016E
2017E
USD (Billions)
$160
$80
$0
Connected Car
Connected TV
Mobile/Network
PCs
loT Devices
Wearables
How do you think a Britain exit from the EU
would affect your company’s c mpetitiveness
in UK and European marke ?
CompTIA UK Members Respond to Brexit
Source; CompTIA
Are you in favour of Britain
leaving the EU?
Would your employment strategy
change if Britain were to leave
the EU?
Do you think US vendors will shift
their f cus away from the UK if it
were to leave the EU?
Do you think Britain leaving
the EU would affect the purchsing
decisions of your clients
13%
6%
41%
31%
9%
Very positively
Positively
Neutral
Negatively
Very negatively
Source: Com TIA, amo g UK members
19% NET Positively
40% NET Negatively
16%
19%
28%
13%
22%
28%
9%
63%
47%
53%
66%
38%
Yes
Not sure
No
Yes
Not sure
No
Yes
Not sure
No
Yes
Not sure
No
D (Billions)