US Tech Industry Might Lose Up To $35bn Over NSA Revelations

US Tech Industry Might Lose Up To $35bn Over NSA Revelations

NSA Revelations

US tech giants fear that they can lose up to $35bn in cloud computing contracts over the next few years after the news came out that US companies share stored data with the government’s surveillance organization NSA.

After recent revelations that popped up online indicating the possible sharing of data with NSA, many companies outside the US have already showed concerns over handing out their data to US firms running the cloud computing business and the effect has already started to make an impact as some US companies claim that they have already lost millions of dollars due to this proclamation.

NSA

It is firmly believed that many of the UK and other European firms are looking for cloud computing services outside the US. British Executive Simon Wardley has already shown its disappoint over this matter in a very sarcastic way by saying, “Do I think we should be prepared to go the whole hog, ban US services and create a €100bn investment fund for small tech startups in Europe to boost the market … oh yes, without hesitation.”

A recent survey taken by the ITIF about the US companies offering cloud computing and storage systems clearly showed that businesses in the US are in very bad shape following the NSA revelations. According to the survey, US companies may lose about 20% of the cloud computing share of the overseas market to its other European rivals.

Projects such as Prism and Xkeyscore are also considered to be top assets for NSA in accessing stored data of all the big firms including Apple, Google and Microsoft. According to the sources, Prism was used by NSA to access user details of individuals that live outside the US while the Xkeyscore is believed to have access to almost every individual’s data on the internet that NSA can access any time.

According to the chairman of ANS Group of UK Scott Fletcher, people in UK are already pushing for a local UK based cloud computing service since the relationship between the two countries are not great in terms of reliability.

So far, no US government official has either denied or responded to these allegations about the cloud computing and the level to which NSA has access to people’s data that travels inside the US. It is believed that the total worth of cloud computing business in the whole world is around $207bn by the end of 2016 and more than half of it belongs to US. But with the recent allegations over NSA could really hurt these figures for the US, and they should take any precautionary measure whatsoever to save their cloud computing market from going into total chaos.

By Ben Anderson

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