A new report by a non-aligned United States think tank warns the American cloud computing industry could take a major earnings hit, thanks to former NSA employee Edward Snowden's revelations of indiscriminate government mass surveillance.
In the report [PDF], the Information Technology and Innovation foundation (ITIF) said if non-American companies decided the risks of storing data with US firms outweighed the benfits, the collection of electronic data from third-paties "will likely have immediate and lasting impact on the competitiveness on the US cloud computing industry".
Eight out of 10 enterprise Software-as-a-Service buyers will not be happy with the contracts they sign. And there's good reason for that.
That's the prediction from Gartner analyst Alexa Bona, who chides the current state of contracts, which all too often "have ambiguous terms regarding the maintenance of data confidentiality, data integrity and recovery after a data loss incident."
Bona outlines three options enterprise cloud buyers need to exercise every time they cut a cloud agreement.
Like a lot of organizations, NASA's doing its best to keep up with the times and move its computer systems onto the cloud. Like only a government agency can do, it's failing fantastically at doing so securely.
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.
IT security teams should be on the lookout for business units that may be spinning up servers using a public cloud provider for big data analytics projects because it introduces a variety of security risks, according to a security auditor who frequently reviews the software and infrastructure supporting such projects.