Snowden Revelations Costly for US Tech Firms

 

cloudmarket.png

The study by the Information Technology and Innovation Foundation estimated that US cloud computing firms could lose between $22 billion and $35 billion in overseas business over three years. Now the Washington think tank, said the impact would be greater than its estimate nearly two years ago. 

It now appears impossible to quantify the economic damage because the entire sector has been tarnished by the scandal from revelations in documents leaked by former NSA contractor Edward Snowden, the report said. "These revelations have fundamentally shaken international trust in US tech companies and hurt US business prospects all over the world," the report said.

Study co-author Daniel Castro said the impact is now open-ended, with the NSA scandal having tarnished a wide range of US tech firms. Since 2013, he said, "we haven't turned this around: it's not just cloud companies. It's all tech firms implicated by this," he told AFP, "It doesn't show any signs of stopping." The report said foreign customers are increasingly shunning US companies, and governments around the world "are using US surveillance as an excuse to enact a new wave of protectionist policies."

One survey cited by the researchers found 25 percent of businesses in Britain and Canada planned to pull company data out of the United States as a result of the NSA revelations. Some companies in Europe do not want their data hosted in North America due to these concerns, the researchers said.

Meanwhile foreign companies have used the revelations as a marketing opportunity. "There is also an increasingly distressing trend of countries, such as Australia, China, Russia, and India, passing laws that prevent their citizens' personal information from leaving the country’s borders. This effectively is mandating that cloud computing firms to build data centers in those countries or risk losing access to their markets."

The report said several US tech firms including Apple and Salesforce have already started to build data centers abroad "to appease foreign watchdogs and privacy advocates."

While this "data nationalism" may create some jobs in the short term, Castro said that countries enacting these policies "are hurting themselves in the long term by cutting themselves off from the best technology."

Castro said the passage of a reform measure last week called the USA Freedom Act is not sufficient to repair the reputation of US tech firms. The report recommends further reforms including boosting transparency of surveillance practices, opposing government efforts to weaken encryption and strengthening its mutual legal assistance treaties with other nations.
Security Week: http://bit.ly/1LawUa

« Russia Hacked The German Parliament
GCHQ Lack Staff for 'umbrella' Cyber Surveillance »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

ON-DEMAND WEBINAR: What Is A Next-Generation Firewall (and why does it matter)?

ON-DEMAND WEBINAR: What Is A Next-Generation Firewall (and why does it matter)?

Watch this webinar to hear security experts from Amazon Web Services (AWS) and SANS break down the myths and realities of what an NGFW is, how to use one, and what it can do for your security posture.

MIRACL

MIRACL

MIRACL provides the world’s only single step Multi-Factor Authentication (MFA) which can replace passwords on 100% of mobiles, desktops or even Smart TVs.

Resecurity

Resecurity

Resecurity is a cybersecurity company that delivers a unified platform for endpoint protection, risk management, and cyber threat intelligence.

Syxsense

Syxsense

Syxsense brings together endpoint management and security for greater efficiency and collaboration between IT management and security teams.

NordLayer

NordLayer

NordLayer is an adaptive network access security solution for modern businesses — from the world’s most trusted cybersecurity brand, Nord Security. 

Titus

Titus

Titus is a global leader in enterprise-grade data protection solutions.

CS Group

CS Group

CS Group offers a complete range of security solutions from consultancy to security maintenance and from secure infrastructure design to security governance.

HoxHunt

HoxHunt

HoxHunt is an automated cyber training program that transforms the way your employees react and respond to the growing amount of phishing emails.

Callsign

Callsign

Callsign’s mission is to seamlessly power the identification of every web, mobile and physical interaction.

BEAM Teknoloji

BEAM Teknoloji

BEAM Technology is an independent Software Quality and Security Testing Center in Turkey.

Security Innovation Network (SINET)

Security Innovation Network (SINET)

SINET is dedicated to building a cohesive, worldwide Cybersecurity community with the goal of accelerating innovation through collaboration.

Bolt Learning

Bolt Learning

Bolt's Cyber Security eLearning module provides users with an in-depth understanding of cybercrime, how it can occur and what everyone can contribute to preventing it.

Secured Communications

Secured Communications

Secured Communications has developed the only unified secure communications platform trusted by public safety and counter terrorism professionals around the world.

Core Sentinel

Core Sentinel

Australia's #1 Penetration Testing Service. Make Your Systems Fully Compliant With Our OSCE CREST/CISA Certified Penetration Testing.

Red Goat Cyber Security

Red Goat Cyber Security

Red Goat Cyber Security have created excellent, informative and interactive Social Engineering Awareness training which is suitable for all levels of staff.

Davinsi Labs

Davinsi Labs

Davinsi Labs helps companies achieve Digital Service Excellence with specialized Security Intelligence and Service Intelligence solutions.

VicOne

VicOne

With a vision to secure the vehicles of tomorrow, VicOne delivers a broad portfolio of cybersecurity software and services for the automotive industry.

ASRC Federal

ASRC Federal

ASRC Federal’s mission is to help federal civilian, intelligence and defense agencies achieve successful outcomes and elevate their mission performance.

Options Technology

Options Technology

Options is a global leader in financial technology, specialising in Capital Markets technology and enterprise-grade solutions.

Endari

Endari

Endari specializes in building cybersecurity maturity within the operational DNA of early-stage startups and SMBs.

TÜV SÜD Academy UK

TÜV SÜD Academy UK

TÜV SÜD offers expert-led cybersecurity training to help organisations safeguard their operations and data.