Summary:Forrester Research said the revenue hit to U.S. cloud and outsourcing providers is less than initial projections because international customers upped security instead of leaving.<\/p>\n<\/p>\n
Spying by the National Security Agency will cost cloud and outsourcing providers about $47 billion in revenue over the next three years, but that sum is better-than-expected, according to a Forrester Research analysis. <\/p>\n
IT Security in the Snowden Era <\/p>\n
The Edward Snowden revelations have rocked governments, global businesses, and the technology world. Here is our perspective on the still-unfolding implications along with IT security and risk management best practices that technology leaders can put to good use. <\/p>\n
In 2013 and 2014, the NSA's PRISM program, a massive Internet spying operation, was outed by Edward Snowden. As reports continually surfaced about the NSA's programs, large tech vendors began to see a hit. Officially, the NSA wasn't blamed, but multiple U.S. tech giants noted business tanked in China and other key markets. <\/p>\n
It's official: NSA spying is hurting the US tech economy <\/p>\n
What Forrester found is that the PRISM program has hurt U.S. cloud providers, but traditional outsources are taking the biggest hit. For instance, cloud providers will lose about $500 million in revenue between 2014 and 2016. Most international companies have stuck with U.S. providers, but are taking control of security and encryption, said Forrester analyst Ed Ferrara in a report. <\/p>\n
Forrester's report noted: <\/p>\n
The biggest difference between initial worst-case projections in 2013 of revenue loss of $180 billion and the current $47 billion projection is that customers took encryption into their own hands, said Forrester. <\/p>\n
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