NSA Encryption Cracking Could Worsen Potential Losses For U.S. Cloud Industry

Grazed from CRN. Author: Kathy Kim.

Potential NSA-related losses for the U.S. cloud industry could steepen following the recent disclosures about the government’s encryption cracking practices, according to the Information Technology and Innovation Foundation (ITIF).

Last month, the ITIF released a report that claimed the U.S. National Security Agency’s domestic surveillance program, dubbed PRISM, could cost the U.S. cloud computing industry anywhere between $22 billion and $35 billion over the next three years. But recent revelations about NSA’s antiencryption program could have an even more detrimental impact to the industry if foreign customers choose to not store their data with U.S. companies…

While cloud is a driving force in IT, NSA’s spying brings fear, uncertainty and doubt for foreign corporations relying on U.S. cloud computing, according to Daniel Castro, senior analyst of the Washington, D.C-based ITIF. The news that NSA is cracking common online encryption technologies, and even placing secret back-door access points in commercial security products, could further undermine the confidence of foreign businesses, he said…

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