NSA Revelations Could Prove Costly to U.S. Cloud Industry
The ITIF estimates are based on the assumption that U.S. cloud providers could lose between 10 and 20 percent of their international market share, while their position in the U.S. remains untouched. Considering the public reaction to the NSA leaks outside of America and especially in Europe, these assumptions don't seem too far fetched. To avoid a lasting negative impact on the competitiveness of the U.S. cloud computing industry, the ITIF concludes: "the U.S. Government needs to proactively set the record straight, declassify information about the PRISM program and allow companies to reveal more details about what information has been requested of them."
This chart shows the estimated losses suffered by U.S. cloud computing providers following the PRISM scandal.