[telecom] Revelations of N.S.A. Spying Cost U.S. Tech Companies

Revelations of N.S.A. Spying Cost U.S. Tech Companies

By CLAIRE CAIN MILLER MARCH 21, 2014

SAN FRANCISCO - Microsoft has lost customers, including the government of Brazil.

IBM is spending more than a billion dollars to build data centers overseas to reassure foreign customers that their information is safe from prying eyes in the United States government.

And tech companies abroad, from Europe to South America, say they are gaining customers that are shunning United States providers, suspicious because of the revelations by Edward J. Snowden that tied these providers to the National Security Agency's vast surveillance program.

Even as Washington grapples with the diplomatic and political fallout of Mr. Snowden's leaks, the more urgent issue, companies and analysts say, is economic. Technology executives, including Mark Zuckerberg of Facebook, raised the issue when they went to the White House on Friday for a meeting with President Obama.

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RELATED COVERAGE

Obama and Tech Executives to Meet Again on Privacy Issues MARCH 21, 2014

It is impossible to see now the full economic ramifications of the spying disclosures - in part because most companies are locked in multiyear contracts - but the pieces are beginning to add up as businesses question the trustworthiness of American technology products.

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