Thursday, August 8, 2013

Fears over NSA surveillance revelations endanger US cloud computing industry

Companies say they could lose billions as customers become wary about their data being turned over to US authorities

Source: Guardian

A survey by the US-based Information Technology & Innovation Foundation (ITIF) found that American companies which offer file storage and computing in cloud systems – so they can be stored and accessed anywhere in the world – are gloomy about the effects of the Guardian's revelations of the extent of US government snooping and data gathering through projects such as Prism and Xkeyscore.

Daniel Castro, author of the ITIF survey, said that it seemed reasonable to suggest that US cloud businesses could lose between 10% and 20% of the overseas market to rivals.

The effect has already been felt, Castro said. The ITIF survey found that of those outside the US, 10% had cancelled a project with a US-based cloud computing provider, and 56% would be "less likely" to use a US-based cloud computing service.

Of those surveyed inside the US, 36% said that the NSA leaks had "made it more difficult" for them to do business outside the US.

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