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Cloud Sector Growing now


(___)

(__) The cloud industry is growing despite NSA spying.


Finley, writer with Wired Business, 2014
(Klint, 2-27-2014, "Amazon’s Cloud Keeps Growing Despite Fears of NSA Spying," WIRED, http://www.wired.com/2014/02/amazon-cloud-size/)

When former government contractor Edward Snowden revealed that the NSA was conducting digital surveillance on a massive scale, many feared for the future of cloud computing. The Information Technology and Innovation Foundation estimated that Snowden’s revelations could cost U.S. cloud companies $22 billion to $35 billion in foreign business over the next three years, and countless pundits predicted that American businesses would flee the cloud as well. People would prefer to run software and store data on their own computers, the argument went, rather than host their operations atop outside services potentially compromised by the NSA. But it looks like the cloud industry is still growing. And in very big way. The world’s largest cloud computing services — services where you can run software and store data without buying your own hardware — are run by Amazon, and according to a new study from independent researcher Huan Liu, Amazon’s operation grew by a whopping 62 percent over the past two years. What’s more, the study shows that growth has been steady since June 2013, when the Snowden revelations first hit the news. In fact, there’s been a surge since December of last year.

(__) Trust in cloud computing has increased, not decreased in the aftermath of Snowden.


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

Ironically, an earlier Lieberman Software study in November 2012 – prior to the Snowden revelations – found 48% of respondents were discouraged from using the cloud because of fear of government snooping, while 86% said they preferred to keep sensitive data on their own network, rather than the cloud. "These findings indicate that trust in the security of the cloud has increased over the past year," Lieberman Software says. To be sure, a few US firms reported an initial sales dip after the Snowden revelations. One can point to a few instances where firms such as Cisco have reported significant sales slowdowns, but the Edward Snowden revelations might not have been the primary and principal cause of the sales dips.


Surveillance doesn’t effect business decisions- extensions


(___)

(__) Fears of tech industry losses due to the NSA scandal were overblown.


Henderson, Editor and Chief at the Whir, 2015
(Nicole, 4-10-2015, "Impact of NSA Surveillance on US Cloud Providers Not as Bad as We Thought: Forrester," Data Center Knowledge, http://www.thewhir.com/web-hosting-news/impact-nsa-surveillance-us-cloud-providers-not-bad-thought-forrester )

It’s been two years since Edward Snowden leaked details of the NSA’s PRISM surveillance program, and although analysts predicted an exodus from US-based cloud and hosting services in response to the revelations, it hasn’t exactly worked out that way, a new report finds.

Forrester released a new report last week that suggests concerns around international customers severing ties with US-based hosting and cloud companies “were overblown.”

Lost revenue from spending on cloud services and platforms comes to just over $500 million between 2014 and 2016. While significant, these impacts are far less than speculated, as more companies reported taking control of security and encryption instead of walking away from US providers,” Forrester’s principal analyst serving security and risk professionals Edward Ferrara said in a blog post.


(__) Losses much lower than expected.


Ferrara, Analyst at Forrester Research, 2015
Ed Ferrara, , 4-1-2015, "Forrester Research : Research : Government Spying Will Cost US Vendors Fewer Billions Than Initial Estimates," Forrester , https://www.forrester.com/Government+Spying+Will+Cost+US+Vendors+Fewer+Billions+Than+Initial+Estimates/fulltext/-/E-res122149

Is Edward Snowden's unveiling of the US National Security Agency's PRISM spying program ruining the fates of US cloud, hosting, and outsourcing businesses as international customers walk away from any vendor within the agency's reach? Forrester's first survey of these customers about the effects of PRISM suggests a significant financial impact, but not to the degree speculated in 2013. Our analysis of the pullback by non-US enterprise spending on US-based cloud and outsourcing vendors suggests an overall three-year loss in potential revenues of $47 billion. Traditional outsourcers are feeling the brunt of this impact. Lost revenue from spending on cloud services and platforms comes to just over $500 million between 2014 and 2016. While significant, these impacts are far less than speculated, as more companies reported taking control of security and encryption instead of walking away from US providers. US-based CIOs need not worry that the fallout of PRISM will cripple US cloud vendors, and CIOs outside the US should understand that there are options besides avoiding these US vendors.

Surveillance does not affect business decisions- extensions


(___)

(__) NSA surveillance does not effect actual corporate decisions.


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)

Explosive revelations in the past six months about the U.S. government’s massive cyber-spying activities have spooked individuals, rankled politicians and enraged privacy watchdogs, but top IT executives aren’t panicking—yet. So far, they are monitoring the issue, getting informed and taking steps to mitigate their risk in various ways. But the alarming reports haven’t prompted them to roll back their decisions to host applications and data in the cloud. That’s the consensus from about 20 high-ranking IT executives interviewed in North America and Europe about the effect that the U.S. National Security Agency’s snooping practices have had on their cloud computing strategy. The news broke in June, after former NSA contractor Edward Snowden began leaking the earth-shaking secrets to the media. Many of the IT executives interviewed say that they’re not thrilled with the situation, and that it has made them more careful about cloud computing plans and deployments, prompting them to review agreements with vendors, double-check best practices and tighten security controls. However, these IT executives haven’t been completely surprised by the revelations. Whether by overt means or through covert operations, it’s well known that governments engage in surveillance of telecommunications and Internet traffic. Government surveillance hasn’t changed our opinion about cloud computing. The cloud model is attractive to us, and I was never that naive to think that this type of government monitoring wasn’t going on,” said Kent Fuller, director of enterprise infrastructure services at BCBG MaxAzria Group, a Los Angeles-based women’s fashion designer and seller that uses Microsoft’s Office 365 public cloud suite primarily for employee email.

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