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

Cloud Security Alliance survey finds firms canceling contracts, looking elsewhere for cloud services

By , Computerworld |  Security

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.

Only about three out of 10 survey respondents said Snowden's disclosures will have no impact on their use of U.S.-based cloud services.

The online survey, seeking to gauge the potential impact of Snowden's disclosures on U.S.-based hosting companies, was conducted between June 25 and July 9s.

"The level of skepticism was greater than I expected," said Jim Reavis, co-founder and executive director of the CSA. "I had thought that more people would understand that these activities happen all the time in their countries as well."

A vast majority of survey respondents cited a need for more transparency about the U.S. government's use of secret orders from the Foreign Intelligence Surveillance Act (FISA) court to extract customer data from American Internet companies, Reavis said. Respondents from U.S. and foreign companies were nearly unanimous in calling for the U.S. to disclose more information about the level of cooperation extended by specific service providers to government requests for customer data.

Google, Microsoft, Yahoo and others that have been heavily subjected to FISA court orders, and are now demanding that they be allowed to disclose more details about such requests. The providers are now prohibited from disclosing information about such court orders.


Originally published on Computerworld |  Click here to read the original story.
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