Critical Read

The price of NSA surveillance for cloud providers

concept art for cloud services

What: A report on the potential economic consequences of the National Security Agency’s PRISM program for the U.S. cloud computing industry, by Daniel Castro, senior analyst at the Information Technology and Innovation Foundation (ITIF)

Why: Europe is looking to cut into the dominance of American companies in supplying cloud computing services. The European Commission has called for its own technical standards and certification for cloud providers. The research firm Gartner has estimated that Western Europe could support a $47 billion per year cloud industry by 2015.

European vendors are likely, according to Daniel Castro of the ITIF, to leverage recent disclosures that American companies are participating in National Security Agency surveillance programs to their own economic benefit. Castro estimates that U.S. cloud vendors could lose between $21.5 billion and $35 billion over the next three years, a result of increased market share from global competitors.

Neelie Kroes, European Commissioner for Digital Affairs described the case this way: "If European cloud customers cannot trust the United States government, then maybe they won't trust U.S. cloud providers either. If I am right, there are multibillion-euro consequences for American companies. If I were an American cloud provider, I would be quite frustrated with my government right now."

Castro recommends that the U.S. government take steps to declassify more information about PRISM and other NSA data collection programs, and work to make transparency about data collection part of trade agreements, including the Transatlantic Trade and Partnership deal that is still being negotiated.

Verbatim: "While the reputations of U.S. cloud computing providers (even those not involved with PRISM) are unfortunately the ones being most tarnished by the NSA leaks, the reality is that most developed countries have mutual legal assistance treaties (MLATs) which allow them to access data from third parties whether or not the data is stored domestically."

Download the full report here.

About the Author

Adam Mazmanian is FCW's senior staff writer, and covers Congress, health IT and governmentwide IT policy. Connect with him on Twitter: @thisismaz.

The 2015 Federal 100

Meet 100 women and men who are doing great things in federal IT.

Featured

  • Shutterstock image (by venimo): e-learning concept image, digital content and online webinar icons.

    Can MOOCs make the grade for federal training?

    Massive open online courses can offer specialized IT instruction on a flexible schedule and on the cheap. That may not always mesh with government's preference for structure and certification, however.

  • Shutterstock image (by edel): graduation cap and diploma.

    Cybersecurity: 6 schools with the right stuff

    The federal government craves more cybersecurity professionals. These six schools are helping meet that demand.

  • Rick Holgate

    Holgate to depart ATF

    Former ACT president will take a job with Gartner, follow his spouse to Vienna, Austria.

  • Are VA techies slacking off on Yammer?

    A new IG report cites security and productivity concerns associated with employees' use of the popular online collaboration tool.

  • Shutterstock image: digital fingerprint, cyber crime.

    Exclusive: The OPM breach details you haven't seen

    An official timeline of the Office of Personnel Management breach obtained by FCW pinpoints the hackers’ calibrated extraction of data, and the government's step-by-step response.

  • Stephen Warren

    Deputy CIO Warren exits VA

    The onetime acting CIO at Veterans Affairs will be taking over CIO duties at the Office of the Comptroller of the Currency.

  • Shutterstock image: monitoring factors of healthcare.

    DOD awards massive health records contract

    Leidos, Accenture and Cerner pull off an unexpected win of the multi-billion-dollar Defense Healthcare Management System Modernization contract, beating out the presumptive health-records leader.

  • Sweating the OPM data breach -- Illustration by Dragutin Cvijanovic

    Sweating the stolen data

    Millions of background-check records were compromised, OPM now says. Here's the jaw-dropping range of personal data that was exposed.

  • FCW magazine

    Let's talk about Alliant 2

    The General Services Administration is going to great lengths to gather feedback on its IT services GWAC. Will it make for a better acquisition vehicle?

Reader comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above