Tech contracts now requiring data storage offshore from USA

Firms in the UK and Canada are reportedly updating their cloud contracts to demand that their data be kept out of the US. The report doesn’t contain enough details, however, to say if this is a trend or an isolated incident.

Is this the backlash? A handful of companies are requiring cloud service providers to promise — in writing — that they won’t store any client data in the United States, according to Bloomberg.

The report says that a British grocery chain and a Canadian pharma company have responded to the ongoing US surveillance scandal by adding language to existing contracts that mandate suppliers to segment their data and keep it out of America.

The report of the revised contracts comes as the cloud computing industry continues to digest news that America’s National Security Agency is tapping underwater cables and infiltrating the servers of storage providers as part of a sweeping counter-terrorism program…

So does the Bloomberg report portend the start of a trend? It’s too soon to say. The report, which also claimed a Canadian agency had asked for the “no data in USA” clause, was based on a single source (an Indiana security firm known as Rook Consulting) and did not name any of the companies involved.

And, while such reports are eye-catching, they also provide a public relations opportunity for cloud providers outside of the US.. to drum up business. In the meantime, it’s unclear if European cloud providers have the capacity to take over existing large-scale data storage contracts, and to what degree companies’ existing cloud contracts dissuade them from switching services.

Are we to give thanks to the NSA for providing a great reason for offshoring business from the United States? Roberts’ article doesn’t ask the important question: What idiots in our government skipped past the question of how being the most intrusive Big Brother in the World would affect American businesses dependent on guaranteeing security to their clients?

If I was working in communications with valuable data there is no way on Earth I would trust an American corporation to provide me with anymore privacy than the American government seems to allow. Which is damned little.

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