U.S. technology companies to lose $35 billion dollars due to NSA Leaks
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U.S. technology companies to lose $35 billion dollars due to NSA Leaks
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.
Global spending on cloud computing is expected to double between 2012 and 2016, whereas the global IT market will only grow by 3%. The global cloud computing market is estimated to be a $207 billion industry by 2016, ITIF says.
The NSAs programs will likely have an immediate and lasting impact on the competitiveness of the U.S. cloud computing industry if foreign customers decide the risks of storing data with a U.S. company outweigh the benefit, the Information Technology & Innovation Foundation warns in a statement.
Neelie Kroes, european commissioner for Digital Affairs, has said: If European cloud customers cannot trust the United States government, then maybe they won't trust U.S. cloud providers either. If I am right, there are multibillion-euro consequences for American companies. If I were an American cloud provider, I would be quite frustrated with my government right now.
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.
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.
Global spending on cloud computing is expected to double between 2012 and 2016, whereas the global IT market will only grow by 3%. The global cloud computing market is estimated to be a $207 billion industry by 2016, ITIF says.
The NSAs programs will likely have an immediate and lasting impact on the competitiveness of the U.S. cloud computing industry if foreign customers decide the risks of storing data with a U.S. company outweigh the benefit, the Information Technology & Innovation Foundation warns in a statement.
Neelie Kroes, european commissioner for Digital Affairs, has said: If European cloud customers cannot trust the United States government, then maybe they won't trust U.S. cloud providers either. If I am right, there are multibillion-euro consequences for American companies. If I were an American cloud provider, I would be quite frustrated with my government right now.
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.
http://www.foxbusiness.com/governmen...ting-industry/
Profit is no justification to do something illegal. And in some cases the NSA has directly pressured companies to break the law, forcing the bosses ethically out of business.
