NSA Could Set Back Cloud Industry by $35 Billion.
By Matt Brownell (from Daily Finance.)
“Would you store your data with a company if you had reason to believe that by doing so, you were essentially giving a government a free pass to access that valuable information at any time? A lot of people and businesses would say no.
So the recent revelations of widespread electronic snooping by the National Security Agency should have the burgeoning cloud computing industry worried. How worried? A report released Monday by the Information Technology and Innovation Foundation, a Washington, D.C.-based think tank, suggests that cloud companies could lose as much as $35 billion in revenue over the next three years as a result of the PRISM spying scandal.
Much of the cloud industry currently resides in the U.S., with major players including Google (GOOG), Amazon (AMZN) and Microsoft (MSFT). But the report notes that other countries are racing to seize a share of what’s projected to be a $207 billion industry by 2016. And a scandal that calls into question the privacy of data stored with American companies could provide these foreign competitors with an opening.”
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