Nsa negative

Foreign Business hurt economy more- extension

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(__) Cannot solve foreign businesses -- companies based outside of the US won’t be protected.

Mackinnon, Director of the Ranking Digital Rights project at New America Foundation, 2014
(Rebecca, 5-19-2014, "Saving Privacy," No Publication, http://bostonreview.net/forum/saving-privacy/rebecca-mackinnon-response-saving-privacy)

While Internet companies are essential to the U.S. economy, not all of their work is done domestically. Their future business success depends on overseas markets, but access to those markets depends in turn on the trust of non-American users and customers. This creates a challenge for legal reform. If the consequences of insufficiently accountable NSA surveillance only concerned Americans, then Hundt’s law-based solution—combined with commitments by companies and the U.S. government to support encryption and the right of Internet users to be anonymous—would probably do the trick. But U.S. companies have global “constituencies,” a term I prefer to “users” for reasons I explain in my 2012 book Consent of the Networked. NSA surveillance—and surveillance by most other governments via corporate-run platforms and networks—affects people around the world who have no leverage over U.S. lawmakers. At the same time, other countries can place before U.S. companies obstacles that American laws are powerless to overturn. So while legal reform in the United States is necessary, we also need parallel processes across the democratic world. The Freedom Online Coalition, a group of twenty-two democracies, has begun to take positive steps in this regard, and the international human rights community is pushing for such reforms.

Foreign Business hurt more- extension

(__) Foreign, not domestic, surveillance is what is driving data pull out – restrictions on domestic surveillance will only further this exodus.

Chander and Le, Director and Research Fellow at California International Law Center, 2015
(Anupam and Uyên P,. “Data Nationalism,” Emory Law Journal, Vol. 64:677, http://law.emory.edu/elj/_documents/volumes/64/3/articles/chander-le.pdf

First, the United States, like many countries, concentrates much of its surveillance efforts abroad. Indeed, the Foreign Intelligence Surveillance Act is focused on gathering information overseas, limiting data gathering largely only when it implicates U.S. persons.174 The recent NSA surveillance disclosures have revealed extensive foreign operations.175 Indeed, constraints on domestic operations may well have spurred the NSA to expand operations abroad. As the Washington Post reports, “Intercepting communications overseas has clear advantages for the NSA, with looser restrictions and less oversight.”176 Deterred by a 2011 ruling by the Foreign Intelligence Surveillance Court barring certain broad domestic surveillance of Internet and telephone traffic,177 the NSA may have increasingly turned its attention overseas. Second, the use of malware eliminates even the need to have operations on the ground in the countries in which surveillance occurs. The Dutch newspaper NRC Handelsblad reports that the NSA has infiltrated every corner of the world through a network of malicious malware.178 A German computer expert noted that “data was intercepted here [by the NSA] on a large scale.”179 The NRC Handelsblad suggests that the NSA has even scaled the Great Firewall of China,180 demonstrating that efforts to keep information inside a heavily secured and monitored ironclad firewall do not necessarily mean that it cannot be accessed by those on the other side of the earth. This is a commonplace phenomenon on the Internet, of course. The recent enormous security breach of millions of Target customers in the United States likely sent credit card data of Americans to servers in Russia, perhaps through the installation of malware on point-of-sale devices in stores.

(__) They can’t solve foreign surveillance which is the critical factor for the tech industry, international clients won’t be protected – the USA freedom act proves.

Kuranda, Associate Editor at Computer Reseller News covering security, 2015
(Sarah. 6-2-2015, "Solution Providers: New NSA Controls Fall Short Of Restoring Trust In Cloud Services," CRN, http://www.crn.com/news/security/300077006/solution-providers-new-nsa-controls-fall-short-of-restoring-trust-in-cloud-services.htm)

Grealish said the bill appeared to "bolster" trust in cloud services in the U.S., but failed to extend that trust over the border. "It appears that the new bills do nothing to prevent U.S. authorities, via the appropriate legal mechanisms, to gain access to cloud-based data of foreign enterprises operating in U.S. cloud services, so businesses operating outside of the U.S. will have to continue to deal with conflicting regional laws and regulations if they are contemplating moving data across their borders to the U.S," Grealish said. The U.S.A. Freedom Act is now on its way to President Obama, who said he will sign it into law.

Businesses won’t leave cloud - extension

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(__) The benefits of cloud computing are too valuable to corporations to pass up, NSA spying doesn’t matter.

Perez, Assistant News Editor PC World, 2013
(Juan Carlos, 12-5-2013, "Why CIOs stick with cloud computing despite NSA snooping scandal," PCWorld, http://www.pcworld.com/article/2069681/why-cios-stick-with-cloud-computing-despite-nsa-snooping-scandal.html)

Stealthy monitoring of computer systems and communications by governments currently doesn’t rank among the top IT security concerns for many IT leaders. “Every CIO will tell you we worry every minute of every day about security, privacy, redundancy, operational continuity, disaster recovery and the like,” said Michael Heim, Whirlpool’s corporate vice president and global CIO. “We’re probably the most paranoid guys on the planet.” Jacques Marzin, director of Disic, France’s interministerial IT and communications directorate, said the NSA scandal confirmed the known risks associated with the use of public cloud services. “We are of course concerned about any third party access to our data although we have limited usage of public clouds,” he said. However, having everything behind the firewall also carries risks. CIOs worry about the cost and complexity of running servers on their own premises and the potential loss of competitiveness if rivals are taking advantage of the benefits of cloud computing. ”At the end of the day, the capabilities and economics around the cloud computing model are so compelling that when you artificially try to not take advantage of them you impact your ability to compete, because others will take advantage of them,” Heim said. Whirlpool recently decided to move about 30,000 employees from an on premises IBM Lotus Notes system to the Google Apps public cloud email and collaboration suite. ”We believe we have a very good plan in place to make sure we’re just as compliant and secure, if not more so, than we were before,” Heim said.

(__) There’s no alternative to American cloud companies, the won’t lose business.

Menn, Reporting for Reuters, 2013 (Joseph, Reuters, “ANALYSIS-Despite fears, NSA revelations helping U.S. tech industry,” Reuters 15 September 2013 Factiva)

FEW GOOD ALTERNATIVES

There are multiple theories for why the business impact of the Snowden leaks has been so minimal. One is that cloud customers have few good alternatives, since U.S. companies have most of the market and switching costs money. Perhaps more convincing, Amazon, Microsoft and some others offer data centers in Europe with encryption that prevents significant hurdles to snooping by anyone including the service providers themselves and the U.S. agencies. Encryption, however, comes with drawbacks, making using the cloud more cumbersome. On Thursday, Brazil's president called for laws that would require local data centers for the likes of Google and Facebook. But former senior Google engineer Bill Coughran, now a partner at Sequoia Capital, said that even in the worst-case scenario, those companies would simply spend extra to manage more Balkanized systems. Another possibility is that tech-buying companies elsewhere believe that their own governments have scanning procedures that are every bit as invasive as the American programs.

Businesses won’t leave cloud - extension

(__) Upside of cloud computing is bigger than any NSA risk for businesses.

Kim, Contributing Editor for Techzone360, 2014
(Gar, 7-11-2014, "What is Impact of Spy Scandal on U.S. Cloud Computing Business?," Techzone360, http://www.techzone360.com/topics/techzone/articles/2014/07/11/383598-what-impact-spy-scandal-us-cloud-computing-business.htm

One might argue the impact of the spying scandal is hard to quantify, as it will be expressed primarily as a loss of new sales to competitors based elsewhere, and perhaps slower growth than might otherwise have been the case.

On the other hand, there are counterbalancing trends at work. U.S. enterprises and smaller businesses are shifting information technology spending from “premises” to “cloud” sources. So, despite any potential sales headwinds created by the spying threats, business customer spending on cloud services seems destined to grow, irrespective of new security threats. After all, many customers could conclude, the upside is greater than the potential downside. Spend is shifting from internal to external, in direction of cloud services, says Arthur Gruen, principal at Wilkofsky Gruen Associates. It is hard to see new machine to machine apps being abandoned because security issues now loom larger. Instead, entities are likely to pursue M2M apps because there are clear business advantages, and simply spend more money on security. 

(__) Cloud companies have increased revenues after Snowden leaks – Customers aren’t leaving.

Verton, , Editorial Director - FedScoop, 2014
(Dan 11-3-2014, "Is the post-Snowden cloud apocalypse real?," FedScoop, http://fedscoop.com/happened-post-snowden-cloud-predictions

When news broke last year of the National Security Agency's PRISM surveillance program, which enabled direct access to the servers of some of the nation's largest Internet companies, industry executives and analysts immediately warned that U.S.-based cloud providers would lose hundreds of billions of dollars in revenue as European and other foreign organizations moved their data elsewhere. But so far, the mass exodus from U.S.-based cloud providers doesn't appear to have materialized. Not only have the biggest players in the U.S. cloud market reported increases in foreign revenues and users, many have outlined aggressive international expansion plans for cloud services and data centers, according to Securities and Exchange Commission filings reviewed by FedScoop. In a series of telephone and email interviews, however, analysts and industry executives paint a more complex picture of the post-Snowden cloud market. Although anecdotal evidence remains strong that European companies and governments are more wary of U.S. cloud providers, the length of cloud contract commitments and the resources necessary to move to the cloud have led organizations to focus more on security and data localization rather than a mass abandonment of the biggest U.S. cloud providers.