Snowden revelations could cost US cloud providers billions

US cloud providers could lose up to a fifth of the foreign market to overseas competitors in the aftermath of Edward Snowden’s security revelations, according to a study.

The Information Technology & Innovation Foundation report said that between 10% and 20% of non-US customers could avoid American companies in a data security backlash.

It said that European companies in particular could take advantage of the current climate to entice consumers away from the US.

Author Daniel Castro said: “If US companies lose market share in the short term, this will have long-term implications on their competitive advantage in this new industry.

“Rival countries have noted this opportunity and will try to exploit it.”

The global cloud market is set to hit $148 billion (£95.6 billion) next year, and the report predicts that US cloud providers may lose $35 billion (£22.6 billion) by 2016.

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