The NSA Scandal Is Bad for the US Cloud Storage Business

According to the VP of the European Commission, cloud providers will suffer huge losses

By on July 5th, 2013 16:31 GMT

The revealing of the NSA spying program could mean losses of billions of dollars for the US economy, the European Commission Vice President said.

Neelie Kroes believes that some of the first who will feel the effects of the recent revelations will be cloud service providers, RT reports.

“If businesses or governments think they might be spied on, they will have less reason to trust cloud, and it will be cloud providers who ultimately miss out,” Kroes said.

Kroes comments that if you suspect someone of sharing your commercial data or other secrets against your wishes, you will stop paying for their services.

Internet companies in the United States will face “multi-billion euro consequences” in the wake of the NSA scandal.

“If I were an American cloud provider, I would be quite frustrated with my government right now,” Kroes concluded.

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