What Will NSA Scandal Cost in Global Cloud Sales?
January 29, 2014
Grazed from TalkinCloud. Author: Chris Talbot.
Fears that began last year about National Security Agency (NSA) spying techniques could have a significant impact on cloud revenue over the next three years, according to some industry trade groups and analysts. But the dollar figures being quoted seem more like warnings from Chicken Little or that lad who cried "wolf."
Six technology groups wrote to the White House in December noting they believed the NSA scandal could cost upwards of $35 billion in revenue in the cloud computing sector by the end of 2016. Not an insignificant dollar figure at all, but James Staten, an analyst at Forrester Research, wrote in a blog post that $35 billion is too conservative of an estimate. Instead, Staten said the market could face a $180 billion shortfall in that timeframe. By estimates, that’s a 25 percent hit to service provider revenue, he noted…
Either figure sounds scary, but are they realistic? The figures take into account what many believe to be an industry slowdown because of the NSA, but so far, the expected slowdown seems to be MIA. A Reuters article noted that Google (GOOG), Facebook (FB), Amazon Web Services (AWS) and Microsoft (MSFT) "have felt little if any impact" so far…
Read more from the source @ http://talkincloud.com/cloud-computing-security/what-will-nsa-scandal-cost-global-cloud-sales
Subscribe to the CloudCow bi-monthly newsletter @ http://eepurl.com/smZeb