NSA Pricked The “Cloud” Bubble For US Tech Companies

Mr Obama and NSA spymasters, meet Mr Blowback:

In a survey conducted after the Snowden leaks, 10% of the foreign companies using cloud computing services said they’d already cancelled a project with a US cloud provider and 56% said they’d be less likely to use US-based providers. Conversely, among US stakeholders in the cloud sector, 36% said that the NSA leaks would make it more difficult doing business outside the US. The report estimated that if US cloud companies lose between 10% and 20% of their foreign business over three years, it will cost them between $21.5 billion to $35 billion.

But the report cautions it could get much more expensive “if foreign governments enact protectionist trade barriers that effectively cut out US providers.” In Europe, momentum in that direction is growing.

German Federal Data Protection commissioners threatened with new bureaucratic hurdles. Interior Minister Hans-Peter Friedrich announced that “whoever fears their communication is being intercepted in any way should use services that don’t go through American servers.” And Justice Minister Jörg-Uwe Hahn called for an outright boycott of US companies.