All the latest UK technology news, reviews and analysis


PRISM: EU warns of serious consequences for cloud computing vendors in the wake of spy scandal

05 Jul 2013
European Parliament

Neelie Kroes has warned of "multi-billion euro consequences" for cloud service providers if customers can no longer trust their security measures in the wake of the PRISM hacking scandal.

"If businesses or governments think they might be spied on, they will have less reason to trust the cloud, and it will be cloud providers who ultimately miss out," said Kroes, the vice president of the European Commission (EC) who speaks regularly on digital issues.

She said that customers who allow their cloud suppliers to hold sensitive information will find themselves in a difficult position: "Why would you pay someone else to hold your commercial or other secrets, if you suspect or know they are being shared against your wishes?" she asked.

Customers would see sense and look elsewhere, according to Kroes, with US vendors bearing the brunt of the damage: "Front or back door - it doesn't matter - any smart person doesn't want the information shared at all," she said. "Customers will act rationally, and providers will miss out on a great opportunity.

"In this case it is often American providers that will miss out, because they are often the leaders in cloud services."

But she said that while privacy is a "fundamental right", it should not be entirely down to policy makers to produce legislation for cloud providers to put stronger security measures in place. Instead, she said in the interest of an open and competitive market, cloud vendors should put their own security measures in place as they see fit, saying "privacy is not only a fundamental right, it can also be a competitive advantage."

"Companies focused on privacy need to start coming forward into the light... 2013 is the year," she concluded.

This week, allegations emegered suggesting EU buildings were bugged and EU computer equipment was hacked, with the EC labelling the incidents "deeply disturbing".

  • Comment  
  • Tweet  
  • Google plus  
  • Facebook  
  • LinkedIn  
  • Stumble Upon  
Michael Passingham
About

Michael Passingham joined V3 as a reporter in June 2013. Prior to working at V3, Michael spent time at computing magazine PC Pro. Michael covers IT skills, social media, tech startups and also produces V3's video content.

View Michael's Google+ profile

More on Cloud Computing
What do you think?
blog comments powered by Disqus
Poll

IT curriculum poll

With coding now compulsory in schools, how important are digital skills for the next generation of school leavers?
65%
8%
18%
9%

Popular Threads

Powered by Disqus
V3 Security Summit

V3 Security Summit Day 2: Botnet, skills and BYOD intelligence incoming

Keep V3 bookmarked for news updates on all the key security concerns and topics facing businesses

Updating your subscription status Loading
Newsletters

Get the latest news (daily or weekly) direct to your inbox with V3 newsletters.

newsletter sign-up button
hpv3may

Getting started with virtualisation

Virtualisation can help you reduce costs, improve application availability, and simplify IT
management. However, getting started can be challenging

ibmv3may

Converting big data and analytics insights into results

Successful leaders are infusing analytics throughout their organisations to drive smarter decisions, enable faster actions and optimise outcomes

Java Developer

CONTRACT / Senior Java Developer / Bristol / Bath / South...

Senior Java Developer – Spring, Hibernate, HTML, jQuery, Ajax

Senior Java Developer – Spring, Hibernate, HTML, jQuery...

Java Developer – Spring, Hibernate, HTML, jQuery, Ajax

Java Developer – Spring, Hibernate, HTML, jQuery, Ajax...

Commercial Manager

Job Summary Commercial Manager Competitive Salary...
To send to more than one email address, simply separate each address with a comma.