‘Disruption to data’ if we have no deal
BUSINESSES are at risk of grinding to a halt under a no-deal Brexit, which could result in them losing access to their files, infrastructure consultant TransWorldCom warns.
It estimates that 90 per cent of companies will be at risk of data disruption, if Britain crashes out of the European Union without a deal.
TransWorldCom managing director Paolo Sartori explained that most companies store key data and information, such as client lists, on cloud computing storage servers via the internet.
He said the big cloud storage providers may have clauses in their contracts that allow them to move data around the world at any time, without telling customers exactly where it is stored.
If files are stored on cloud servers based in the European Union and there is no deal, Sartori said EU data protection laws may prevent firms bringing them back to the UK.
“There is huge uncertainty over where exactly the data is stored,” Sartori said. “While ordinarily this might not be a problem, with Brexit this could result in a loss of access to data.”
He said companies can reduce that risk by copying their data to separate cloud storage providers and specifying in their contracts that it can only be held on UK-based servers.
On Tuesday, MPs will vote on amendments aimed at breaking the Brexit impasse and ruling out a chaotic no-deal.
Staff at banks, brokers and other City firms are set to work through the night on Tuesday to deal with the fallout from Parliament. It will be the second time they have had to do so this month.
Sterling has risen this month amid hopes that Britain will avoid a no deal, but Barclays’ head of European equity strategy Emmanuel Cau warned: “Markets aren’t fully pricing in a no deal, but investors aren’t positioned for good news either. UK equities are highly dependent on the direction of the pound.”