Skip to comments.NSA Leaks Slam Cloud Computing Industry (Big Brother Ruining High-Tech Economy)
Posted on 09/11/2013 10:53:24 AM PDT by shego
U.S. technology companies warn they could lose between $21.5 billion to $35 billion in global cloud computing contracts over the next three years due to negative fallout from the U.S. National Security Agency (NSA) spying programs on Internet users, including emails.
A new report from the Information Technology & Innovation Foundation (ITIF), a Washington, D.C.-based think tank, estimates that U.S. cloud computing companies could lose 10% to 20% of the cloud computing market to European or Asian companies due to U.S. spying. That means major players including Google (GOOG), Amazon (AMZN) and Microsoft (MSFT) could be hurt....
Some tech companies told the Cloud Security Alliance that they have already lost customers. Tech companies in Europe also said that UK and European businesses are pulling back on entrusting their cloud data to American units, which might have to turn it over secretly to the National Security Agency (NSA).
More than half of the cloud computing companies situated outside the U.S., some 56%, told the Cloud Security Alliance in a survey done between June and July that they would be less likely to use a U.S.-based cloud computing service due to NSA spying.
One out of 10 non-U.S. cloud companies said they had already canceled a project with a U.S.-based cloud company as a result of the spying. For U.S. residents, slightly more than a third, 36%, said that the NSA leaks made it more difficult for them to do business outside of the U.S.
Already, German data protection authorities have called for suspending all data transfers to U.S. companies under the U.S.-EU Safe Harbor program because of PRISM.
Artmotion, Switzerlands largest hosting company, reported a 45% increase in revenue in the month after Edward Snowden revealed details of the NSAs PRISM program, ITIF notes....
(Excerpt) Read more at foxbusiness.com ...
Maybe so, but who would think these companies will protect their information?
Well, since Microsoft, Google & Co all willingly (and secretly) cooperated with the NSA - I would think twice as well before entrusting them with my information.
F the cloud...
...I’ve been parroting the security risks since it was first suggested.
Not so much by the NSA but all the other bad actors out there.
I’ve said before that this would happen, if the US doesn’t clamp down on the NSA spying the economic impacts to tech companies will be huge. This will also start to impact things like Microsoft sales of Windows and you might even see a different smart phone OS as no one is going to trust Goggle’s Android OS.
The Obama administration is destroying every other sector in the U.S. economy so why not cloud storage?
“Microsoft, Google & Co all willingly (and secretly) cooperated with the NSA”
Good point. These tech companies could have fought in the courts a lot harder before capitulating to the NSA.
This opens wider the door for open source computing.
The NSA probably presented their dossiers with a ‘we trust you to do the right thing’ sticky note attached.
The “requests” probably had attachments directed to the company CEO’s personal attention, pointing out how unfortunately it would be if anybody did any deep delving into those dubious deductions for the “business trip” with Brandi and Bambi the bisexual bimbos.
I think you forgot to mention Apple. I love their new iPhone security system... Touch ID, which uses your thumb print to get sign in to your phone. My assumption is that the NSA can get the thumb print of anyone who uses it. How convenient for them...
More like own your own physical storage and servers
Buh Bye Cloud!
It seems as if the NSA is convincing corporations to keep their business applications inside their firewalls after all.
I’ll keep my data files local, thanks. The gov’t should, however, put all their documents in the cloud so we can all see them.
Exactly. Every one of those companies is headed by and/or has the tech philosophy of cultural engineering. They built their wealth on tracking, nudging and manipulating you.
Human? Nope, you’re a tabulation. That they so willingly colluded with government isn’t upsetting to them. They’re not the least bit sorry they did it. They’re really sorry they got caught.
You’re totally right. I don’t trust my Android phone.
At least we’re winning the WOT.
How about we’ll just sue or regulate you to death?
The IRS scandal is enormous and that it isn’t causing riots is disheartening. It simply proves what we’ve said all along, “Government is a monster - a dangerous, self-serving monster.”
It gets used to punish enemies and benefit friends. It is simply too big by cost, scope and size.
Yes, we are. There is very little truth left.
In this, the War on Truth has been very successful.
I new not wot I was talking about.
My fellow young IT peers look at me like I’m nuts when I trash-talk the delusion of “cloud” this and “cloud” that.
Security and data-loss risks are just the tips of the iceberg. Cloud reliance fosters carelessness as well because people don’t have to have the responsibility of a local copy to not lose or screw up; they can just grab it from the cloud.