NSA REVELATIONS HAVE CHANGED ICT DECISION-MAKERS’ BEHAVIOUR TOWARDS THE CLOUD - Top Stories news and analysis from Global Banking & Finance Review
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NSA REVELATIONS HAVE CHANGED ICT DECISION-MAKERS’ BEHAVIOUR TOWARDS THE CLOUD

Published by Gbaf News

Posted on April 2, 2014

3 min read

· Last updated: October 31, 2023

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Report highlights nine major after-shocks compelling organisations to think again about how they use cloud computing

Cloud Adoption Changing After NSA Revelations

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 Revelations Have Changed ICT Decision-Makers’ Behaviour Towards THE CLOUD

NSA Revelations Have Changed ICT Decision-Makers’ Behaviour Towards THE CLOUD

Survey of ICT Leaders in Five Countries

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:

  •  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
  • Only 5 percent of respondents believe location does not matter when it comes to storing company data
  • More than three in ten (31 percent) ICT decision-makers are moving data to locations where the business knows it will be safe
  • 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
  • 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)
  • Just over half (52 percent) are carrying out greater due diligence on cloud providers than ever before
  • One in six (16 percent) is delaying or cancelling contracts with cloud service providers
  • More than four fifths (84 percent) feel they need more training on data protection laws
  • 82 percent of all ICT decision-makers globally agree with proposals by Angela Merkel for separating data networks

Shift in Attitudes Toward Cloud Security

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.”

Balancing Security Risks and Cloud Benefits

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.”

To download the report NSA AFTER-SHOCKS: HOW SNOWDEN HAS CHANGED IT DECISION-MAKERS’ APPROACH TO THE CLOUD visit http://nsaaftershocks.com/

Key Takeaways

  • 88% of ICT decision‑makers changed their cloud buying behavior following Snowden revelations.
  • Most respondents now consider data location critical — only 5% say it doesn’t matter.
  • Heightened due diligence and procurement changes have become common post‑Snowden.
  • Many are delaying or cancelling cloud contracts, and moving data to trusted locations.
  • There’s strong demand for data protection training and support for separated data networks.

References

Frequently Asked Questions

What prompted the change in cloud behaviour?
Edward Snowden’s NSA surveillance revelations led 88% of ICT decision‑makers to alter their cloud buying behaviour.
How important is data location now?
Extremely — only 5% say location doesn’t matter; many are relocating data to places they trust, and regional preference rose to 97% in EU and 92% in US.
Are cloud projects being cancelled or delayed?
Yes — about 16% of respondents reported delaying or cancelling contracts with cloud providers.
What steps are organisations taking on provider scrutiny?
Over half (52%) are applying greater due diligence than before, and 84% say they need more training on data protection laws.
What policy stance do ICT leaders favour?
82% agree with Angela Merkel’s proposal for separating data networks to enhance protection.

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