American cloud companies stand to lose billions of dollars in business because of Edward Snowden's NSA revelations, and non-U.S. companies are already preparing to pick up the slack.
"The leading cloud companies have been U.S.-based companies, but now there's a real reason to invest in these types of companies that are not in the U.S.," said James Staten, an analyst at Forrester.
The fear that the U.S. government can pry into companies' systems at will and access sensitive data is causing a growing number of businesses to either avoid big U.S. cloud providers--which include IBM, Hewlett-Packard and Oracle--or abandon the cloud altogether.
"A lot of countries are going to fight to be the new leader in this area," said Daniel Castro, a senior analyst at the Information Technology and Innovation Foundation. "I think that's where the U.S. could lose long term."
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