PRISM Fallout: The U.S.’ Cloud dominance to be rivalled by other countries

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IT Security & Support Specialist for Small and Medium Businesses



Following the PRISM scandal, the U.S. government’s spying programme, it has been predicted that the U.S.’ Cloud industry will lose a staggering $35 billion (£22.3 billion) over the next 3 years, leaving their global Cloud dominance open to be challenged by rival countries, especially those within the European Union (EU).

It is claimed, in a report by the Information Technology and Innovation Foundation that Europeans are looking to distance themselves from America’s electronic surveillance. The global Cloud industry, by 2016, will grow to a worth of $207 billion (£131.62 billion), a 100% increase in spending, giving other countries the opportunity to grow their share in this marketplace.

Neelie Kroes, EU Digital Agenda Commissioner, has warned that European companies will turn away from American companies that have been embroiled in the PRISM programme, which shared user data with U.S. intelligence agencies.

This is backed by a survey, piloted by the Cloud Security Alliance, when the news of the scandal began to surface; they found that 56% of non-U.S. businesses will not use a U.S. Cloud Service Provider.

Information Technology and Innovation Foundation’s report also stated that ‘the economic consequences of national security decisions should be part of the debate, and this cannot happen until more details about PRISM have been revealed’.

Source: ZDNet

As a UK-based Cloud Service Provider, the security of our client’s data is paramount. This is why we strive to ensure that we only use Data Centres located within the UK and certainly never outside of the European Union. For more information about the Cloud and how to secure your data, contact us here.


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