Wednesday, June 29, 2016

Brexit: Micro Decisions in a Macro Economy

With the Brexit vote and the surprise decision of the UK to leave the EU, for most of us here in the states, the biggest immediate impact is probably the market trouble and the financial uncertainty. And yet, as you watch your 401k value drop, like many macro economic shifts, there's not much you can really do. But over the past couple of days as I've had time to reflect on Brexit, I've discovered a really significant business impact for myself and, depending upon the size of the business that you work with, you may find yourself in a similar circumstance.

We run multiple web sites on Rackspace Cloud. We have also discussed building a globally centralized web site architecture, something that would enable us to centrally manage a number of localized regional sites. At the same time, running sites for different global regions can present some legal challenges, specifically in the areas of privacy and data retention -- the difference between European and US laws. One approach to help address the European legal restrictions is to operate the European web site in Europe.

For us, this was an advantage with Rackspace Cloud. Rackspace has multiple data centers here in the US, and they also maintain a data center in the UK. Initially, when we looked at this international architecture, our strategy was to simply replicate the core framework of the site across to the UK data center and, in a matter of minutes, have a European compliant site up and running.

Brexit calls that whole plan into question.

Sure, the UK is part of the EU right now. Sure it may take a couple of years for the change to take place. It's even possible that the UK may negotiate the to maintain a similar level of legal equity on privacy issues. However, and this is the big one, with the Brexit vote they've created an environment of uncertainty. Uncertainty makes a poor foundation for architecture.

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