NSA scandal damage “only” $47 billion

The damage to U.S. businesses caused by the revelations of Edward Snowden that the U.S. National Security Agency was eavesdropping on nine popular Internet platforms is less than expected, according to Forrester Research.

Loss of trust was a bigger issue. “More than half of all respondents said they would not trust US-based outsources to handle” sensitive information, Forrester reported. The companies surveyed also said they are moving their most sensitive data away from U.S. suppliers.
The NSA’s PRISM program snooped on users of Google, Microsoft, Yahoo, Facebook, Apple and others, ex-NSA staffer Snowden revealed.

In a study released Thursday, the tech information service said that its analysis shows that spending on American cloud vendors will be down $47 billion over three years.
That’s much less than estimates made in 2013, the company said. In 2013, Forrester estimated the damage as being more like $180 billion.

Lost revenue from spending by international customers on cloud services and platforms will come to just over $500 million between 2014 and 2016, the study argues.

The study reports that 26 percent percent of companies polled pulled back any data because of the disclosures. Some of the pullback was due to local laws requiring local data storage.
Of those moving data, 34 percent said it was because of “fear of intelligence community spying.”
The amount of data was relatively small, because only 15 percent had their data on an internet-based third party.

“While significant, these impacts are far less than speculated,” the Forrester said,because companies took control of their security and encryption instead of dropping U.S. providers.

For the survey, 3,190 business and technology “decision-makers” were surveyed by phone and online in June and July of 2014. Countries covered were Australia, Brazil, Canada, France, Germany, India, New Zealand, the UK and the U.S.

Photo: FLORINFREDERICK FLORIN/AFP/Getty Images

 

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  • Truth

    The fallout isn’t done yet, other companies are still ramping up to replace comprised American tech companies.

    • koconor100

      “compromised” yes. Tell it how it is, in their own terminology.
      All american electronics have been “compromised” .
      Absolutely true.

  • We’re getting IBM cloud arrays in Canada because of this, but I’m sure it’s not any better. 🙂 I’ve set up a Tor relay on my Linux machine. I’m sure it’s causing the NSA sleepless nights…

  • koconor100

    Get off the internet.
    Use your cell phone for email and communications. Use a (local , disconnected from your company) lap top for moving spread sheets around if those spread sheets have to go out of the office.

    Give the sales department one or two connected computers , running the ads they use to sell your product. These computers should have no connection at all to your internal network.

    I recommend investing in some 1970’s and 80’s technology , or even custom written programs , for internal work. You can’t get infected from a Word macro virus if you’re running a 20 year old version of word that doesn’t have macro’s and won’t run them. Guess what ? Spell check has been around forever , even in 20 year old stuff. You don’t need bill gates latest and greatest.

    Consider a web site with HTML 1 only. Pictures and HTML. No flash , no java, no angry customers shouting at you because they got some flash transmitted virus from your site.

 
 
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