A new report shows that since the National Security Agency (NSA) spying fiasco, US companies have lost around $180 billion in business overseas – and that number is expected to increase.
The New America Foundation report claims NSA spying has the potential to decrease US technology growth by 4%. Some other startling stats include Cisco, which had a 10% drop in revenue from global clients, while Amazon and Dropbox noticed immediate decreases in overseas sales. Since NSA breaches began in June 2013, Virginia-based ServInt Corporation, has seen a 30% drop in foreign business.
As a result of major NSA security breaches and leaks, many nations have created their own technology opportunities. Native IT companies in Brazil, Greece, Vietnam and India will keep business in their countries instead of outsourcing to the US. In fact, one out of every three businesses located in Canada claimed they are moving data outside of the US specifically because of the NSA problems.
The most discouraging statistic of all is that cloud storage services globally bring in $150 billion and this number is growing. However, because of the NSA, American companies are being ostracized from this opportunity. Swiss company, Artmotion, showed a 45% increase in business after light was shed on NSA spying. Germany’s Interior Ministry made a statement about this situation:
“Ties revealed between foreign intelligence agencies and firms in the wake of the U.S. National Security Agency affair show that the German government needs a very high level of security for its critical networks.”
One of NSA’s core missions is to protect America’s cybersecurity. Yet the basis of current distrust and unease comes from the fact that the agency has essentially attacked the security of the Internet. They destabilized encryption tools as well as created backdoor entrances into hardware and software products used by millions of consumers.
Instead of having security risks fixed, they were simply releasing spyware into routers around the globe. Facebook and LinkedIn were impersonated to obtain data, while Google and Yahoo were hacked to retrieve email and street addresses. Security expert Bruce Schneier summed it all up:
“I can’t imagine foreign buyers trusting American products. We have to assume companies have been co-opted, wittingly or unwittingly. If you were a company in Sweden, are you really going to want to buy American products?”
The full report by the New American Foundation can be found here (PDF link). What do you think about the impact NSA spying has had on the international cloud storage business?