New industry contracts say “no data in the USA,” report says

Gigaom

Is this the backlash? A handful of companies are requiring cloud service providers to promise — in writing — that they won’t store any client data in the United States, according to Bloomberg.

The report says that a British grocery chain and a Canadian pharma company have responded to the ongoing US surveillance scandal by adding language to existing contracts that mandate suppliers to segment their data and keep it out of America.

The report of the revised contracts comes as the cloud computing industry continues to digest news that America’s National Security Agency is tapping underwater cables and infiltrating the servers of storage providers as part of a sweeping counter-terrorism program.

In August, shortly after news of the surveillance was leaked by Edward Snowden, a Forrester analyst reported that it could cost the U.S. cloud computing industry up to $180 billion as a result of foreign firms bolting American…

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