U.S. cloud firms suffer from NSA PRISM program

July 25, 2013

For U.S. cloud providers, already working to beat back a wave of overseas policies they say tilt the playing field in favor of home-grown competitors, the revelations of the National Security Agency’s PRISM electronic surveillance program have only made conditions in foreign markets tougher. The media accounts of the program based on leaks by former contractor Edward Snowden have created a perception that the U.S. government has unlimited and direct access to data stored on the servers of companies like Google and Microsoft, experts said on Wednesday at a policy talk here at the Information Technology and Innovation Foundation, a D.C. think tank. “The PRISM disclosures are damaging, and I think I’m prepared to speculate extremely damaging to commercial firms that have offered cloud and related kinds of services, and that do or would benefit from efficient cross-border data flows,” says Philip Verveer, the former U.S. coordinator for international communications and information policy at the State Department. Already, domestic cloud providers have been hampered in their overseas expansion, particularly in Europe, by a deficit of trust among businesses and consumers who worry about how their data will be handled when it resides in the cloud. The long-held suspicion that the U.S. government will be able to freely access foreign users’ data under the PATRIOT Act has been fueled by foreign cloud companies and some state officials, who have pressed for cloud protectionist policies that would limit the flow of data outside the country, effectively requiring foreign providers to operate data centers locally. To read this article in full or to leave a comment, please click here

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