NSA Spying Hurts California's Business
mspohr points out an opinion piece from Joe Mathews that "makes the argument that California's economic life depends on global connections. 'Our leading industries — shipping, tourism, technology, and entertainment — could not survive, much less prosper, without the trust and goodwill of foreigners. We are home to two of the world's busiest container ports, and we are a leading exporter of engineering, architectural, design, financial, insurance, legal, and educational services. All of our signature companies — Apple, Google, Facebook, Oracle, Intel, Hewlett-Packard, Chevron, Disney — rely on sales and growth overseas. And our families and workplaces are full of foreigners; more than one in four of us were born abroad, and more than 50 countries have diaspora populations in California of more than 10,000.' It quotes John Dvorak: 'Our companies have billions and billions of dollars in overseas sales and none of the American companies can guarantee security from American spies. Does anyone but me think this is a problem for commerce?' It points out that: 'Asian governments and businesses are now moving their employees and systems off Google's Gmail and other U.S.-based systems, according to Asian news reports. German prosecutors are investigating some of the American surveillance. The issue is becoming a stumbling block in negotiations with the European Union over a new trade agreement. Technology experts are warning of a big loss of foreign business.' The article goes on to suggest that perhaps a California constitutional amendment confirming privacy rights might help (but would not guarantee a stop to Federal snooping)."
less foreigners == more american STEMs getting hired?
All this caring about what foreigners think sounds Unamerican to me.
This is why it was necessary to keep the programs secret and why the leaks didn't do any good.
What does the dgse and other agencies do all day?
Xbox?
Seriously. We've been saying this for decades. Secure it.
Top to bottom encryption, compartmentalization, etc.
Make it so the NSA just can't tap your communication.
I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
Seccede from the union? Then you're just as much a furriner to the NSA as the rest of the world. And thus fair game to spying operations that have gotten a little out of hand. To the point that you can no longer say "don't do that" to the people doing it. It is so much out of control that you have to shut down the machine entirely and scap it. And please don't rebuild it, not even from scratch.
This also shows how utterly provincial the USoA really is. It takes an outlier like California to look outside the borders with anything but thinly-veiled suspicion. And that also means that the USoA is not really fit for playing the world's neighbourhood cop, since that is a position of trust, not power. It doesn't surprise, then, that there's quite a difference between how the rest of the world sees what it's done and the stellar job it itself thinks it has done.
Christ, I know the US likes to pretend it is at the centre of the friggin' universe and that nothing exists beyond their borders... But hell, you guys have the same problem internally?
That NSA shit is bad for all of you. Never mind California. You all better start wisening up and do something about the fuck heads you gave all your power to. What do you think would happen if the rest of the world woke up and decided to put trade blockades in place over any technological product the NSA could potentially have their fingers in?
And WHO, might I asked, tipped off these "Asian governments and businesses"?
If America is losing business, blame your culture of coddling attention-seeking little bitches like Snowden.
Californians voted for bigger, more intrusive government. They got it. They should accept the consequences.
Don't use US services.
If you demonstrate that your industry is an arm of state surveillance, why would you be surprised that when this is revealed people stop trusting you?
Every other country in the world now more or less has to assume that these American companies can (and will) provide their data for US national intelligence -- at which point the logical choice is to stop using those US companies.
Much like if companies from another country were found to be enabling widespread spying on US citizens, there would be outcry in the US and backlash.
I don't see why anybody should be surprised that if you undermine trust, there will be consequences.
Some of these companies were already very casual with what they were collecting (eg Google and the wifi passwords when doing Street View). If they were likely handing this kind of stuff over to the US government, even less so.
Once damaged, trust is a very difficult thing to get back. If Google and everyone else though they were under scrutiny for their privacy policies before, then they should really expect a lot more of it.
Lost at C:>. Found at C.
It's a Monday, and /. is stating the bleedin' obvious.
What's less obvious is how much NSA snooping hurts US companies. I doubt it's nearly enough to be able to call it a justification for dismantling the infrastructure.
Other countries pull back from the US from the *fear* of spying and theft. American companies, on the other hand, keep pumping in: Money, equipment, and even technical know-how even though we know this happens. Just as long as the labor is cheap. This is considered a a manufacturing best practice.
This short-term view is also irrational. Even our closest allies fight tooth & nail to protect their industries--see Korea and Japan for their domestic agriculture and automobile tariffs.
Why is Skype listed there. It originated from eastern europe and is owned by Microsoft, neither of which are based in California.
Anti-terrorism is the excuse for spying. Business is the real purpose. When the countries we spy on the most can be ranked in terms of size of economy, there is no fucking way the government can keep claiming that the purpose for these spying programs is anything other than to keep the powerful people powerful.
For example, revelations were made that we target Germany for spying. It only makes sense if you look at the size of the economies. http://www.spiegel.de/international/germany/nsa-spies-on-500-million-german-data-connections-a-908648.html
Yes, NSA spying will hurt California's business.. and it should. Instead of giving in to the secret government's secret demands, Google, Microsoft, Apple, and everyone else should be fighting these anti-democratic efforts tooth and nail.
--- We need more Ron Paul!
Congratulations for missing the point in the most American[tm] way possible. "No, look at them, then!"
Yeah, well, they just followed your lead to stay in the game, eh. I don't know what they'd done if you hadn't provided that lead, but that's hardly relevant, now is it? Be honest now, if you can. What's done is done, and it turns out it did went and done quite a bit of damage, and it's not being done with the doing damaging quite yet.
In a very real sense this situation was created by the USA. Whatever otherwise might have happened, putting your mark on things means you get to bear responsibility for the fall-out, too. It's very American[tm] to try to want to be the firstest and the bestest, except when things go pear-shaped, as they have, and then it's suddenly everybody else's fault because of what everybody else may have done, not because of what you did. How immature. That fine country of yours really just a gigantic kindergarten then?
Well, I have news for you, kiddo. YOU DID DO ALL THAT. That means IT IS YOUR FAULT.
You don't get to skirt that. And so it is up to you to fix it and to earn back the trust you just squandered. Throwing a tantrum isn't going to help you. You really do need to grow up.
German citizen here, and one working it IT Security for almost two decades now. I have been advocating the use of strong encryption and keeping the crown jewels "in the house" to my employers and customers all the time, but managers would often not listen in order to save the odd buck on the next outsourcing deal.
By launching and funding the spy programmes the US government has willingly accepted possibly detrimental effects on the economy.
In my opinion it serves the US companies right that finally the time has come that companies and people all over the world actually start looking at whom they make business with. The USA have decided to spy on every single person on this planet - OK, but now don't complain that this hurts your economy. If US companies don't like what's happening then they should complain to your government and make them change things.
A lot of trust has been destroyed, and it will take the US economy some effort to regain it. Work hard, and maybe some day in the future I will no longer advise my customers and friends to avoid US services.
We repeatedly hear that NSA is spying for industrial reasons. To give advantage to American companies. But the NYSE is full of foreign companies that are traded here. And those companies are in complex derivative markets. And the retirement portfolios of Americans. If its an truly international market now, but American companies are benefiting from the spying, then Americans are being hurt. Perhaps the difference is that foreign companies cannot contribute to politicians and political parties. Maybe that is the difference.
>Does anyone but me think this is a problem for commerce?' ....the world has changed, get over it man, move on, we can never go backwards...it's like saying you wish you could still hunt mammoths in your bunny rabbit slippers with sticks....those days are gone. China has made damn sure of this, or USA has made damn sure to let us think that China has made sure of this. Take your pick.
John Dvorak!, does anyone care why this guy cries in his sleep? The facts are
I'm not 100% up to date on all the news that's coming out on these leaks, but I remember seeing an article where HP is installing back doors to its hardware. And it's common knowledge that Apple colluded with publishers to artificially inflate e-book prices. It, doesn't take much Googling to find all the conspiracy theories behind Disney, and there's always someone comaplaining about Chevron(and the other similar vendors).
Why not blame the companies themselves for being dishonest?
Also, if "...none of the American companies can guarantee security from American spies." is a problem in negotiations with the EU, then the EU should talk to Russia on how to stop it. I bet they know how.
Perhaps *if* you have the right connections you might profit for a little bit of industrial espionage. Write a letter to your Congressman/woman
When I start seeing sales drop in the quarterly statements of the mentioned companies, then I may consider that NSA surveillance may be the cause.
If sales actually drop AND surveys indicates that it is because foreign entities are concerned about US spying - showing a causal relationship then, I will believe it.
After all, it has been suggested that the Chinese were putting spying software into Lenovo comuters and it's done nothing to hurt their sales.
That's their business. And it's not the spying that hurts the business, but the revelation if it.
Call me cynical; I'll call you naive if you thing the world would be better off without the spying.
closed source software because of such concerns. Over the previous 5 years all their local competitors have seen issues with industrial espionage and data theft which took a few of them out of business since the government wouldn't deal with them any longer. :)
When I came to consult for them, they had PCs installed with 8 LAN cards to function as l3 switches, their printers were behind a print server since they didn't trust the firmware and the staff was depositing their phones on entry to the facilities. This was all just their internal network which was physically isolated from the Internet. They had separate machines with no cd drives or usb ports that were painted red for handling emails. If any significant data was to be shared with another party, they would physically come to the facilities or would be met at their facilities with a security team and an engineer carrying a laptop.
I was asked what can be done regarding cellphones since they wanted to allow their employees to use them and wanted some input from an outsider. I replied "Nothing." Detailed some, and took my standard commission.
Every now and again they approach me with some proposal from some firm offering said service\product. Every time I review the proposal and raise the kind of security concerns they eventually reply "our property encryption..." I'm lucky enough that the CEO is a CS major so whenever I get them to spew that line, I get my check on the spot. One time I didn't even bother collecting since the entire ordeal was a 10 minutes conference call I took at home over lunch.
I'm probably stating the obvious here, but this contractor doesn't leak. Ever. To the point I have no clue what it is they're actually working on. Something tells me half their staff isn't too sure about what they're doing either.
The lack of guarantee is why it's pointless. If you want things to be secure, then make 'em secure. Then laws won't matter.
To be quite honest, California hurts California's business. This sounds like a fig-leaf excuse. "Oh, they're not investing because of some reason that's not our fault!" Tailor-made for CYA, an all-too-convenient cureall for a fire under your ass.
No, they're not investing because California has gone to great lengths to create a climate that is openly hostile to new business, and all business in general. But I expect the fig-leaf to work because the people who get the policies passed are not the same ones who have to answer for them.
Shutting down free speech with violence isn't fighting fascism. It IS fascism!
Ah, the ancient sport of looking down on Americans as uncultured slobs. Centuries go by and this pastime is evergreen. It never, ever gets old and the arguments are the same as they have always been.
Ah, the ancient Slashdot sport of getting all "offended" and wailing the instant someone says something "insensitive" about America.
Last thing I heard, we have scrapped the tought of outsourcing our Exhange setup(or moving into the cloud as the bosses say).
Also since we have our own "cloud" spread over 2 locations with complete hardware redundancy, including storage, it is easier for us to keep it local.
It seems to me that reality finally caught up with management and they no longer trust that the companys information will stay inside.
Before, a limited number of users were allowed(through company policy and firewall unblocking) to use services such as Dropbox to communicate with external partners regarding less critical files, such as fabrication of print material, but now they want us to have our own "Dropbox" solution too.
I'd say that we are going to buy more hardware but less online services.
Since America runs a foreign-trade **deficit**, then any reduction in trade helps provide (net) employment for American workers. Nothing is more important. No chi.com B1z or narco.MEX chicken.pickers either. Make capitol chase (citizen) labor. Sure --- some investment sharpies and market gamblers get screwed, but they have-it-coming. No loss. We spit on their shrivelled bodies in the gutter.
... hehehe ... So please ... increase the intrusive spying on foreign producers and chase them the hell-away! Use-it-here / make-it-here is the best policy for working American producers of concrete needed good and services.
Enjoy their newly impoverished wives and daughters also as they get used to the "street"
Oh no. They'll tell everyone i went.
Americans, live up to your constitution. In spirit, and not just in words. In actions and not just in rhetoric. Your move.
Foreigners have never had, and never will have any trust or goodwill for any part or the whole of the US.
Troll is not a replacement for I disagree.
This is a good thing, if companies start to remove their service from US will make business man to lobby government to be more clear about prism and give more privacy to data stored on US territory. Brazil wants to approve a law that makes Google, Facebook and others companies to store user information inside Brazil. Countries worried about Prism can start to do laws like this and damage California`s Business for sure. Brazil wants to nationalize servers (http://tinyurl.com/p2l56nu Google Translation)
There's not going to be any problem with anyone hosting anything in the US. What do you think all these lovely "trade agreements" are about?
The NSA will promise to "partner" with friendly foreign intelligence services and it will all be one big happy family except daddy has his hand under your skirt.
I guess the best we can hope for now is that there are some more brave whistleblowers out there who will risk their lives to keep this story front and center. And if that fails, the best we can hope for is that there are some brave saboteurs.
You are welcome on my lawn.
Are you considering not dealing with the US over concern that the NSA is spying on your communications which pass through the US? I ask because the CIA are spying on pretty much every one else internationally. Oh, and should you feel that other countries are *not* spying on your communications...well, that's the kind of naivete they're counting on so that they can expect that you won't be moving to any annoying end-to-end communication encryption any time soon.
Have a great day!
Is it just my observation, or are there way too many stupid people in the world?
I have been saying this since the Snowden releases -- because all of US products compromised by the NSA/CIA/FBI and used as spy devices, people will change the way they feel about US products and services INCLUDING communications.
I would find it not hard to imagine that other nations would begin setting up additional/supplemental communications links across the world to avoid passing through US controlled circuits. It simply makes sense to route around the damage. And F/OSS is also looking REALLY attractive to other nations as well.
That's not the point. If you are not going to transact business in a country specifically over the concern about your puppies being killed, you should be aware of which other countries kill puppies as a matter of routine governmental intelligence gathering. And by which others, I mean all of them. In fact, I would say that any country who doesn't kill puppies as part of their internal intelligence operations either has no significant stake in world affairs or is lying. Killing puppies is a fact of modern intelligence gathering; no, let me restate that - killing puppies has always been a fact of all intelligence gathering: governmental, corporate, and private.
To pull out of a country over a "moral issue" and then to ignore such moral issues occurring everywhere else is just grandstanding.
Is it just my observation, or are there way too many stupid people in the world?
OMG! And here I was thinking the Government was protecting the USA from foreigners (and perhaps even ourselves).
USA!
USA!
USA!
This reminds of how they got Capone on income-tax evasion: it wasn't his (allegedly) serious and morally reprehensible crimes which did him in the end. Likewise, the overreach (such an understatement) of the NSA and "justice" department is now having serious consequences, not just the ones you would expect (e.g,. widespread moral outrage, constitutional crisis, shutting down and arrests). Things will change because of money, not moral outrage.
"I didn't see any indication that Germany was targeted more than say, France or Brazil, which tends to disprove your assertion"
1) It's in the article, Germany had 500 million phone calls/emails/other recorded by NSA per month. France only 2 million.
2) Why would the correlation be proportionate to economy size? Surely terrorist activity? No? That's exactly their point, the ones spied on are the economic competitors of USA, Germany being the biggest economy in Europe and thus the most spied on.
But to put this in perspective, USA had 2 billion phone calls/emails/other recorded in a month, *not* included the meta data. So the NSA is far more out of control than people want to imagine. I doubt if they did a deal with Microsoft for intel on MS competitors, they would limit it to only foreign competitors. I doubt an agency that lies to Congress would think twice about leaking secrets on Congressmen. An NSA policy isn't any protection at all, it's just one mans arbitrary and easy to ignore rule.
Secede. Get rid of the federal beast sucking at your throat while simulatenously choking it.
It'll make it easier for the rest of us to do the same, and then maybe we can finally know some peace.
California's high cost of living, taxes, urban sprawl, over regulation, and bankrupt state budget is more a risk to California's business than some speculated blowback from NSA revelations.
These comments are my own and do not necessarily reflect the views or opinions of my employer or colleagues...
We are all "foreigners" (Earthlings).
I stopped using all US based services (to maximum possible), from this Spy show (Snow..) . This includes:
- Google
- Microsoft
- Apple
- HP
- Oracle
- Amazon
- Facebook
- Skype
- Twitter
- Any US Web Hosting or SaaS
Which I consider now Hostile entities. I also distrust anything US Based for now on. As a manager and advisor to Companies, I will either enforce this ban or advise this ban on Security grounds. And believe me that's a considerable amount. If the rest of the world does likes this, you can say BYE BYE to silicon valley industry.
I advise you to presure your government to backoff or pay the price of your tirany.
I switched to duckduckgo from google, it's a tiny, irrelevant (in the big schema of things) example, but understand that I used google exclusively for over a decade now and it took overcoming a serious mental block to do that and I did it anyway.
You can't handle the truth.
Nobody lets the wolves guard their sheep. If Google and so forth are letting the NSA in, there's no reason to let them hold your data.
In SOVIET RUSSIA... erm...NSA AMERICA, the Internet logs onto YOU!
Much of the USA relies upon California for certain intra-state agricultural exports, like Hass avocadoes (those football-sized Florida avocadoes are crap, after all,) fresh produce, and more. (What's funny is most of our own walnuts get exported while we import from Brazil and eat those instead.)
If you think spying is hurting business, watch what happens when the agricultural economy can no longer compete with a big player like China. Cali is 9th or 10th place in the GLOBAL economy (coming in ahead of the USA as a whole.) Not what you call a desirable situation, because CA going down means the rest of the country will stumble right along with it, along with a fair bit of the global economy.
Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
I imagine it must be far more than the lost business.
There's money to be made! Prepare to be barraged with encryption and other security products in 3........2.........1.........
"It points out that: 'Asian governments and businesses are now moving their employees and systems off Google's Gmail and other U.S.-based systems, according to Asian news reports."
The biggest concern any agency in this situation would have would probably be all of the adjusting that happens by the public when an operation like this is brought to the public's attention. European governments already seem to embrace open source solutions because the software is open to public scrutiny - this is a total watershed event for the open source movement around the world. I'm just shocked that people outside of the US ever used gmail, hotmail, or Facebook at all.
Next up - SMTP is going to be replaced with an encrypted platform. Count on it. Thirty year old, insecure technology being used to secure bank accounts? It's over. I give it about 2 years before someone comes out with something better.
And, yeah, before you say it - encryption is still a sore spot for spy agencies. The UK complained that their riots were fueled by Blackberry encryption when hooligans cordinated their destruction, and there have been enough cases showing defendants could/couldn't invoke the fifth ammendment when trying to deny access to their own encrypted storage (http://arstechnica.com/tech-policy/2012/02/appeals-court-fifth-amendment-protections-can-apply-to-encrypted-hard-drives/).
Open source, encrypted platforms are going to be the most popular ones for the next five years. I wouldn't be surprised if someone tried to pass a bill this year outlawing or regulating encryption in the US.
California tech industry is a lot about intellectual property.What if the world decide to dismiss US intellectual property because US dismissed the intellectual property of just everyone else?
Personally, I rank Democrats & Public Labor Unions with their naughty bits rammed deep into each others orifices to be more damaging to the California economy. Then the greens. Then the 3 letter agencies. We're pretty much fucked out here. At least the weather's nice.
I was recently at an IT conference in Geneva.
A speaker from a large company there warned those attending (mainly from Europe) to avoid US cloud companies because of NSA spying. Not just US-based servers, but also any company with SUPPORT STAFF located in the US as well, even if the servers are located outside of the US.
Reason 1 is the risk of private company information flowing to competitors through the NSA either officially or through corruption.
Reason 2 is the legal risk of falling afoul of EU privacy laws by hosting in the US or with US support staff.
That's the report from Europe folks. You can call it FUD, but it is there nonetheless.
The trust was lost years ago in most countries and many alternative ways of communications have already bean established. Spying for financial gain is about equal in the top ten countries. Spying in most third world countries is so commonplace that is always taken as a given and any real issues must always be handled differently. America is also a leader in spying to control their own citizens. The public is just learning now and has yet to develop any real subversive anti-intrusive systems. These take time and are difficult to find otherwise they become useless. Where smaller countries spying on the public is far less prolific due to technology issues and differing priorities. The USA has lost a very large portion of world trade this way, but on the other hand many of the top companies backed by this government are advancing financially at the most accelerated rate in history. It appears to me that they are going to milk this puppy until it dies. Mean while California will devolve until her economics becomes equal to whatever the lowest common denominator is globally. We all live in a glass house now and alternative ways of communicating and thinking are going to evolve into common place soon than we think.
We'll slowly realize that politics and business in globalization are nothing but giant ponzi/pyramid scams.
Casteism
You MUST be kidding... As Commerce is sooooo American ( you know stuff like Capitalism and so on...), you mean that it's "unamerican" to worry what your customers may think of your ways of dealing with commerce?
So it's ok for American to spy on other countries, companies and individuals whether on american soil and abroad, even more ok to do so for economic reasons, but it's "unamerican" to worry about the consequences of that same spying on commerce?
Sure... Right...