Tech Companies Reel as NSA Spying Mars Image for Clients

U.S. technology companies are in danger of losing more business to foreign competitors if the National Security Agencys power to spy on customers isnt curbed, the New America Foundation said in a report today.

The foundation called for prohibiting the NSA from collecting data in bulk, while letting companies report more details about what information they provide the government. Legislation scheduled to be introduced today in the Senate would fulfill some recommendations by the foundation, a Washington-based advocacy group that has been critical of NSA programs.

Citing concerns from top executives of Microsoft Corp., Cisco Systems Inc. and other companies, the report made a case that NSA spying could damage the $150 billion industry for cloud computing services. Those services are expanding rapidly as businesses move software and data to remote servers.

The immediate pain point is lost sales and business challenges, said Chris Hopfensperger, policy director for BSA/The Software Alliance, a Washington-based trade association that represents companies including Apple Inc. and Oracle Corp.

Microsoft is hearing from customers that they care more than ever about where their content is stored and how it is used and secured, said John Frank, deputy general counsel for the Redmond, Washington-based software maker.

A protester wearing a Guy Fawkes mask holds up a placard during a demonstration to mark the global "The Day We Fight Back" protest against mass surveillance outside the Supreme Court in Manila, Philippines. Close

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A protester wearing a Guy Fawkes mask holds up a placard during a demonstration to mark the global "The Day We Fight Back" protest against mass surveillance outside the Supreme Court in Manila, Philippines.

The company hasnt seen a significant business impact yet, Jack Evans, a Microsoft spokesman, said in an e-mail.

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Tech Companies Reel as NSA Spying Mars Image for Clients