As a company based in the Euro zone, we have reported our pricing primarily in euros. This has also been the underlying base currency of our business as customers pay for services on UpCloud. However, due to our continued focus on international growth and push for better comparability, we have made the decision to move from Euro based pricing to US dollars. We are going to make the change on Tuesday, May 26th 2015. Based on numerous customer discussions, we have come to realise that the de facto cloud pricing currency is USD and this will help current and new customers better compare UpCloud to other providers. Finally, this will help us launch new products next week, which I will talk briefly about later.
How we work with currencies at UpCloud is as follows. We have a base currency which denotes the real prices of our service and the price of our service in other currencies is derived from this original base currency with the exchange rates in use at that time. The currency rates in use currently are 1 EUR = 1.12 USD or 1 USD = 0.89 EUR.
Because we will use fixed exchange rates after the change as well, we want to highlight that the change will not affect the prices paid by customers. The new exchange rates after the change will be 1 USD = 0.89 EUR and 1 USD = 0.71 GBP.
Previously, customers have had the opportunity to show their account balances in Euros, Pounds Sterling or US dollars. In addition, customers have had the opportunity to make deposits to their accounts in any of the three currencies. Neither of these will change. The only thing that will change is the base currency we use to originally price our services on the backend.
While this may seem more of a backend change, that has cosmetic effects on customers – this will enable us to move to USD based pricing that is the de facto currency in the cloud industry. This will give new and existing customers better chances to compare our prices to other providers. Furthermore, we will be launching some extremely competitive products next week that will be priced in USD. More on these next week – stay tuned.
If you have any questions regarding this change, do not hesitate to reach out to our support team.
Photo: America by Mauro Parra-Miranda.