Less than one-third of non-US companies have moved their data away from US-based partners, suggesting that the impact PRISM had on the cloud market has been overblown to date. A new forecast of the financial loss to US vendors reveals that initial forecasts were high. Our analysis of the pullback in non-US enterprise spending on US-based cloud and outsourcing vendors suggests an overall three-year loss in potential revenues of $47 billion. While significant, the lost revenues are far less than initially speculated.
Shortly after the leak in 2013, Forrester predicted that companies would stick with their US partners but double down on their own security. That theory to date has proven true, with more than 90% of those surveyed saying the leak led to an increase in the use of encryption technologies.
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