NTT Com claims spying revelations have put firms off switching from on-premise.
Nearly nine out of 10 IT decision makers are changing their cloud buying behaviour in light of Edward Snowden’s revelations about the extent of government spying, according to a study.
More than one in three have gone so far as to change their procurement stipulations for cloud providers after the ex-contractor’s flurry of leaks around the NSA’s snooping showed the US agency had spied on American citizens, while accusations of industrial espionage were levelled against the body.
Just over half of the decision makers surveyed are now carrying out greater due diligence on cloud providers, found the study, while one in six is delaying or cancelling cloud contracts as firms become more wary of losing control of their data.
Telecoms firm NTT Com’s study of 1,000 IT decision makers also found that the news has put off two-thirds of companies currently using on-premise systems from storing their data in the cloud.
Taylor Man, executive VP of cloud at NTT Com, said: "The NSA allegation has had a broad impact on the IT industry. Many companies are more conscious of the systems’ security and have changed how they manage their cloud security budgets."
The survey also found that the location of cloud services is becoming more of a factor in whether companies choose to move to the cloud.
An overwhelming 92% of US respondents now prefer buying a cloud service located locally – even more so in Europe, with 97% of those surveyed listing that as a requirement.
The finding contradicted NTT Com’s product strategy VP’s contention at the start of the month that data centre location was less of a concern than encryption.
Len Padilla told CBR: "The geography is less important everyday; trust the math. The math of cryptography is the only way to keep it safe."
The news comes after allegations that the NSA hacked German Chancellor Angela Merkel’s phone, prompting talks over the creation of a European-only communication network.
US cloud storage firm Box is expected to IPO in April, opened a London office in October to serve as the base for its EMEA operations, but smaller rival Egnyte attacked it last month for only having US data centres.
CEO Vineet Jain claimed: "The European customer base is very sensitive about their data crossing the pond, more so with the NSA stuff coming out."
Box declined to comment.