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Cloudy skies for US-based hosting companies ahead of PRISM scandal

Businesses poised to take their data elsewhere to protect it from Big Brother

A couple things happened after Edward Snowden blew the lid off of the NSA’s secrets surveillance program PRISM. First off, sales of the George Orwell’s classic novel about a shadow government that keeps constant watch over its citizens, 1984, shot up 5000 percent.  At the same time and with almost the same ferocity, anxiety over “cloud” storage and applications rose.

The “Snowden effect,” as it’s been dubbed, could have dire implications on cloud providers as companies take their information back in-house to escape the prying eyes of PRISM.  Since U.S. cloud storage companies could have some legal obligation to divulge client information if prompted by the government, increasingly companies are leaving for internationally based cloud storage providers.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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