NSA scandal’s threat to the cloud computing business model

I am a big believer in cloud computing. As storage and mobile bandwidth costs plummet, the ease of use that mobile devices give us makes the cloud computing compelling. The ability to access your data, your company’s data or someone else’s data anywhere and from any device is a huge boon to productivity in businesses and to ease of use to consumers. I have made this case many times over the past few years.

The NSA spying scandal casts this business model in a different light, especially for American companies. Everyone is moving to the cloud now and, if they think the US government is listening in, they are going to be choosy about which vendors they use. Some people might even retreat from the cloud. For companies like Google, this is a nightmare. Expect Google to continue pressing the US government for information disclosure on the PRISM surveillance program because Google desperately wants to be exonerated in the court of public opinion.

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I have been tracking this story closely because of the civil liberties angle. However, it also has very important business ramifications as well. And I will be updating you on these. In the meantime, below are a bunch of links on the scandal, all of which you can find on my diigo or delicious feed. At some point, I will put together a list of go to links outside the paywall that I think best represent a complete picture of the range of topics the spying scandal brings up. Credit Writedowns Pro subscribers should also expect some more thoughts on the cloud computing aspect.

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