Ironic! NSA Revelations Are Actually Helping U.S. Tech Industry


Doomsday Prophesies
When word got around about Snowden’s leaked documents which highlighted the details of collaboration with NSA to gain access to millions of users of big Internet companies, they were issued dire warnings with dark predictions of a possible downfall in the American business involving billions of dollars of loss in revenue as the possibility of distrustful customers seeking out local alternatives increased.
In a recent federal court filing, Google agreed that the media coverage on the leaked documents was causing “substantial harm” to its business reputation. The company also said that it could alleviate the mistrust spreading around if it were allowed to comment about its collaboration with NSA.

In the past month, six technology trade groups wrote a request to the White House, urging reforms in spy programs as they predicted a $35 Billion cumulative shortfall in the economic sector by 2016. This alleged prediction was garnered from a survey of 207 non-U.S. members conducted by a security trade group, Cloud Security Alliance; even though it has explicitly cautioned that its members weren’t representatives of the entire industry.

"I know you want sectors and numbers, but I don't have it," said Ed Black, president of the Computer & Communications Industry Association, one of the trade groups behind the letter. "Anybody who tells you they do is making it up".

Forrester Research analyst James Staten also re-wrote the $35 billion figure to a $180 billion, predicting a 25 percent hit to the overall IT service provider revenues. This generated a lot of concerns as Staten said the worst would come to pass only if Businesses decided that spying was a bigger issue than the savings they gained from a shift to cloud computing.
But in an interview with Reuters, Staten contradicted his earlier statements by saying he didn't believe that would be the case. "I don't think there's going to be a significant pullback," he said, though the rate of growth could slow for a couple of years.

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