NSA revelations impact on the Cloud

Almost nine tenths of ICT decision-makers are changing their cloud buying behaviour as a direct result of Edward Snowden’s allegations of large scale clandestine
cyber-surveillance, a study published by NTT Communications claims.

NSA Aftershocks: How Snowden has Changed IT Decision-Makers’ Approach to the Cloud is based on a survey of 1,000 ICT decision-makers from France, Germany, Hong Kong, United Kingdom and the USA. The study highlights nine after-shocks from Snowden’s revelations, which are compelling companies to rethink how they use cloud computing:
1. Almost nine in ten (88 percent) ICT decision-makers are changing their cloud buying behaviour, with over one in three (38 percent) amending their procurement conditions for cloud providers
2. Only 5 percent of respondents believe location does not matter when it comes to storing company data
3. More than three in ten (31 percent) ICT decision-makers are moving data to locations where the business knows it will be safe
4. Around six in ten (62 percent) of those not currently using cloud feel the revelations have prevented them from moving their ICT into the cloud
5. ICT decision-makers now prefer buying a cloud service which is located in their own region, especially EU respondents (97 percent) and US respondents (92 percent)
6. Just over half (52 percent) are carrying out greater due diligence on cloud providers than ever before
7. One in six (16 percent) is delaying or cancelling contracts with cloud service providers
8. More than four fifths (84 percent) feel they need more training on data protection laws
9. 82 percent of all ICT decision-makers globally agree with proposals by Angela Merkel for separating data networks

Len Padilla, Vice President Product Strategy, NTT Communications in Europe, said: “Our findings show that the NSA allegations have hardened ICT decision-makers’ attitudes towards cloud computing, whether it is modifying procurement policies, scrutinising potential suppliers or taking a heightened interest in where their data is stored.”

He continued: “Despite the scandal and global security threat, business executives need to remember that cloud platforms do help firms become more agile, and do help foster technology innovation, even in the most risk-averse organisations. ICT decision-makers are working hard to find ways to retain those benefits and protect the organisation against being compromised in any way. There is optimism that the industry can solve these issues through restricting data movement and encryption of data.”