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U.S. cloud firms face backlash from NSA spy programs

posted onJuly 24, 2013
by l33tdawg

Non-U.S. clients of American cloud hosting companies are clearly rattled by revelations that the U.S. National Security Agency collects huge amounts of customer data from Internet Service Providers and telecommunication companies.

A Cloud Security Alliance (CSA) survey found that 10% of 207 officials at non-U.S. companies have canceled contracts with U.S. service providers following the revelation of the NSA spy program last month. The alliance, a non-profit organization with over 48,000 individual members, said the survey also found that 56% of non-U.S. respondents are now hesitant to work with any U.S.-based cloud service providers.

In the full survey, more than half of 456 representatives of companies in the U.S., Europe and Asia said they are less likely to use American cloud service providers because of concerns over U.S government access to their data. The U.S. spy program, dubbed PRISM, was revealed in documents leaked last month to reporters by former NSA contract worker Edward Snowden, now seeking asylum in Russia and other countries in an effort to evade prosecution in the U.S.

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