Reputation of Cloud Industry in the Gutter Post-NSA, Report Claims
July 29, 2014
Grazed from ChannelNomics. Author: Hannah Breeze.
The U.S. government must clean up the act of its National Security Agency (NSA) if trust in cloud providers is to be restored, according to a think tank. In its Surveillance Costs: The NSA’s Impact on the Economy, Internet Freedom and Cybersecurity report, the New America Foundation (NAF) claims U.S. cloud firms have borne the brunt of the NSA scandal.
“Trust in American businesses has decreased since the initial reports on the PRISM programme suggested that the NSA was directly tapping into the servers of nine U.S. companies to obtain customer data for national security investigations,” the report said. “Given heightened concern about the NSA’s ability to access data stored by U.S. companies, American companies that offer cloud computing and web-hosting services are experiencing the most acute economic fallout.”…
According to Forrester research conducted soon after the scandal broke, the NSA snooping allegations are predicted to cost the cloud computing industry between $22 billion and $180 billion over the next three years. NAF said the impact of the scandal has been wide reaching…
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