Unemployment has hit levels not seen since the aftermath of the Great Depression. More than 25 percent of small businesses anticipate declaring bankruptcy in the next six months. Hard-hit industries, such as oil and gas, travel, and retail, may be forever reshaped.
For banks, near-zero interest rates and a flattened yield curve mean diminished net interest income. Credit losses could exceed $1 trillion. Recovery will vary in speed and intensity – the effects of the financial pandemic damage could linger for a decade or more.
The United Kingdom (UK) is the highest net exporter of financial services in the world. London, with its convenient time zone, use of English and trimmed-back regulations is the global financial capital.
As the heart of the international monetary system, the largest banks in the world have a strong presence in London. And in 2020 several moved from Microsoft to US Cloud for comprehensive support of their Microsoft technologies.
Q1 2020 we were having exploratory conversations with many financial institutions about working with them in 2021. The pandemic seems to have caused the vast majority of our banking clients to aggressively cut costs this year.
-Matthew Harris, President, US Cloud
As people struggle to pay credit card bills, mortgages and home-equity loans, banks are reserving cash for anticipated charge-offs and losses. The mounting losses have resulted in operating budget pressure, notwithstanding 2020 and 2021 IT budgets.
Many global banks are placing increasing reliance on Microsoft Office 365 and Azure. As their consumption of MSFT cloud services grow, so to does their Premier/Unified support bill, typically 10% year over year. Gartner historically has found that leading enterprises respond rapidly to cut costs during a crisis and benefit greatly post-crisis.
US Cloud is seeing unprecedented urgency from Global 2,000 and Fortune 500 organizations to replace Microsoft Premier/Unified support with US Cloud enterprise support services.
-Robert E. LaMear IV, CEO, US Cloud