The damage to U.S. businesses caused by the revelations of Edward Snowden that the U.S. National Security Agency was eavesdropping on nine popular Internet platforms is less than expected, according to Forrester Research.
Loss of trust was a bigger issue. “More than half of all respondents said they would not trust US-based outsources to handle” sensitive information, Forrester reported. The companies surveyed also said they are moving their most sensitive data away from U.S. suppliers.
The NSA’s PRISM program snooped on users of Google, Microsoft, Yahoo, Facebook, Apple and others, ex-NSA staffer Snowden revealed.
In a study released Thursday, the tech information service said that its analysis shows that spending on American cloud vendors will be down $47 billion over three years.
That’s much less than estimates made in 2013, the company said. In 2013, Forrester estimated the damage as being more like $180 billion.
Lost revenue from spending by international customers on cloud services and platforms will come to just over $500 million between 2014 and 2016, the study argues.
The study reports that 26 percent percent of companies polled pulled back any data because of the disclosures. Some of the pullback was due to local laws requiring local data storage.
Of those moving data, 34 percent said it was because of “fear of intelligence community spying.”
The amount of data was relatively small, because only 15 percent had their data on an internet-based third party.
“While significant, these impacts are far less than speculated,” the Forrester said,because companies took control of their security and encryption instead of dropping U.S. providers.
For the survey, 3,190 business and technology “decision-makers” were surveyed by phone and online in June and July of 2014. Countries covered were Australia, Brazil, Canada, France, Germany, India, New Zealand, the UK and the U.S.
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