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NSA Spying Affecting US Revenues in a Bad Way.

Snowden’s revelations of how far-reaching the NSA spying program
has become has started to negatively affect revenues and reputations
of some of the biggest players in the industry – from RSA to Cisco,

Juniper, Symantec, Microsoft, IBM, McAfee, Intel, Verizon and others.

In fact, Cisco System Inc. CEO John Chambers penned a letter to US
President Obama insisting he reign in surveillance activities by the
National Security Agency after evidence surfaced that the agency is

intercepting Cisco equipment and loading it with surveillance software before sending it on its way.
Mr. Chambers urges the President in a letter dated May 15 to create “new standards of conduct”
surrounding how the NSA executes its global surveillance, warning of less trust and confidence in the
U.S. technology industries. He said, “We ship our products globally from inside as well as outside the

United States, and if these allegations are true, these actions will undermine confidence in our
industry and in the ability of technology companies to deliver products globally.”

These disclosures of spying abroad may cost U.S. companies as much as $35 billion in lost revenue
through 2016 because of doubts about the security of information on their systems, according to the

Information Technology & Innovation Foundation, a policy research group in Washington whose
board includes representatives of companies such as International Business Machines Corp. (IBM)
and Intel Corp. (INTC). In addition, the NSA’s eavesdropping on heads of state will probably hurt
Cambridge-based Akamai Technologies Inc.’s German business, CEO Tom Leighton said. Akamai,
which helps corporations deliver online content, is caught up in a backlash against US Internet

companies, he said. Revelations about US spying raise questions about data held and managed by
US companies. Data the NSA tracks may pass through Akamai’s servers. “It’s clearly bad for
American companies,” Leighton said, Bloomberg News reported. Akamai’s European sales were 17

to 18 percent of revenue in 2010, 2011 and 2012.

As I proposed to you last month, this will be a “YEAR OF PRIVACY”. Focus on improving privacy and
you will protect critical data. If you are looking to start a business outside of the U.S. that focuses on
Privacy, now is the time.

To our faithful readers, Enjoy
Pierluigi Paganini

Pierluigi Paganini, Editor-in-Chief, [email protected]
P.S. Congrats Ken Kleiner (USA) – this month’s contest winner!

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