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Europe pushes own digital cloud in wake of U.S. spying scandal

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Staff writer |
Neelie KroesThe European Commission will redouble efforts to promote EU-based cloud services this autumn amid mounting evidence that the US Prism spying scandal may damage the global market share of US-based tech companies involved in the cloud computing sector.

In June and July 2013, the Cloud Security Alliance, an industry group, surveyed members and other cloud computing stakeholders about their reactions to the US Prism spying scandal.

One in ten (10 percent) of non-US residents responding indicated that they had cancelled a project with a US-based cloud computing provider in the wake of Prism; and 56% said that they would be less likely to use a US-based cloud computing service.

The Alliance predicted that US cloud computing providers might lose as much as €26 billion by 2016, equivalent to the loss of 20% of its share of cloud services in foreign markets.

"If European cloud customers cannot trust the United States government, then maybe they won't trust US cloud providers either," said Neelie Kroes, the EU's digital agenda Commissioner.

US-based cloud service providers – including Google, Amazon and Microsoft – currently account for around 85% of global markets. Europeans now hope to use the Prism scandal to win a share of that market.

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