Tuesday, June 25, 2013

How Much Damage Has The NSA Scandal Done To US Tech Giants?

How Much Damage Has Prism Done To US Tech Giants? -- Willard Foxton, The Telegraph

The fallout from the Prism leak continues. As people digest what the leaks mean, ripples are going out into the business community. Firms were moving towards free, American, reliable cloud-based services; now things are screeching to a halt, as they think "do we want the NSA having access to this?"

It's more than just idle fear. Newspapers using cloud-based email systems have started communicating with confidential sources using other means. Of course, that throws up problems of its own, as the using of email encryption or anonymising software like Tor automatically marks you as higher risk in the NSA's calculations.

Firms which guarantee client confidentiality – doctors and lawyers, for example – have genuine worries about what could or could not be read. Law firms who regularly end up suing governments are especially worried. New details from the Snowden leaks says that the NSA routinely violates attorney client privilege if "foreign intelligence" is contained within. Even if the NSA doesn't actually end up reading the text of your emails, if you deal with anyone they are watching, you end up on a watch list – which is a recipe for airport harassment all over the world.

Read more ....

My Comment: One thing I have learned from the teenagers and young people in my life is that they value their privacy and confidentiality .... especially on the web. While this generation shares a lot they also keep a lot confidential. The idea that Google/Facebook/Apple/etc. are sharing this data is repugnant and distressing for this "text" generation. If there is an alternative that provides the same service that would not have this data sharing with the government .... trust me on this one .... they would flock to it.

2 comments:

Unknown said...

TorChat and Bitmessage may become more popular, if nothing else than to protect a company's intellectual property. Especially for salesforce and technical people that have to travel.

Tim Wohlford said...

First -- the entire "cloud" thing is much more sales gimmick than technology (think "e-everything" circa 2000). The word "cloud" is laughed at in IT circles, 'cause it was simply a Viseo drawing representing "the Internet." Everything that can reasonably be done "in the cloud" has long ago been done.

Second -- one specific example of a single "cloud" idea is covered in this article. And yes, some are touting "cloud" storage of company data. Being a server guy myself, and having been subjected to lots of background investigations and other security measures just to get into (either physically or virtually) a server, I find it highly unlikely that anyone would transmit their data over phone lines and store them "God knows where".

Not only is there a nagging fear of intrusions stated in this article, one also is at the mercy of neighborhood squirrels, backhoes, and the accounts receivable department of the hosting company.

Takeaway -- if a company claims its future hinges on "the cloud" then it's time to sell that stock short.