The Economic Cost of PRISM on the U.S. Cloud Computing Industry
Grazed from PRWeb. Author: PR Announcement.
The United States is the international leader in cloud computing, dominating every segment of the nearly $130 billion industry. However, recent revelations about the extent to which the National Security Administration obtains data from third-parties through the PRISM program, may lead to significant changes in the global cloud market which will negatively impact U.S. cloud providers. The Information Technology and Innovation Foundation (ITIF) estimates the U.S. cloud computing industry stands to lose between $22 and $35 billion in total revenue by 2016.
“Many foreign customers are now deciding whether the risks of storing data with a U.S. company are worth the benefits, and foreign cloud service providers will ruthlessly exploit this perceived weakness to gain market share,” says Daniel Castro, author of the new report “How Much Will PRISM Cost the U.S. Cloud Computing Industry?” and a Senior Analyst with ITIF. “In addition, some countries may use PRISM as an excuse to enact a series of protectionist policies to restrict access to their markets and promote their domestic cloud providers.”…

