The National Security Agency (NSA) leaks are starting to cost American tech companies billions abroad. Just how big is the damage?
Picture this, Washing D.C.-based Information Technology & Innovation Foundation disclosed in a report that 10 per cent of international companies surveyed cancelled a project that rely on US-based cloud computing service. A whopping 56% of them are “less likely” to use a cloud computing service based in the country.
What’s more, a sizable proportion (36%) of American companies surveyed said they’re having a hard time doing business abroad. They found it “more difficult” now than ever. The report also noted that the industry may lose $22 billion to $33 billion just in the next three years following the NSA leaks.
Loss of Trust in US Tech Companies
Trust is definitely one of the biggest issues here. In some of the best business book summaries like Smart Trust and The Speed of Trust, sound advice is given on how to re-establish or repair broken relationships between companies. Many of these guidelines can be practiced both locally and internationally.
Can foreign users, both individuals and organizations, trust their data to American firms? Many are now weighing the risks of storing data with a US-based company against the benefits. But Europe seems to have decided already. Soon after the NSA’s electronic surveillance leaks, Estonian President Toomas Hendrik Ilves encourage the European Union to build and rely on its own cloud computing systems. Ilves also chairs the board of the new European Cloud Partnership.
To understanding the impact of the European agenda, you have to consider that 95% of the cloud computing services used in Europe are provided by American companies.
Big Countries Move Away from US Tech Companies
It’s no surprise that many countries and foreign organizations lost confidence in American tech providers after the NSA leaks. Just recently, A PricewaterhouseCoopers survey revealed that almost a quarter of German companies consider the cloud as “very risky.” Fifteen percent of those surveyed said they want to switch to European tech providers.
It’s not just Germany. The Indian government has even advised its employees not to use Gmail. What’s more, the Indian diplomatic staff in London were also instructed to avoid computers when writing sensitive documents and use typewriters instead.
A Crisis of Confidence: the Avoidance of American Cyberspace
The NSA leaks reveal that many big US-based companies such as Google, Apple, Yahoo and Facebook failed in completely protecting their customers. Richard Stiennon, a technology industry analyst, writes in his column for Forbes magazine:
“The dream is over. The era of U.S. tech dominance in everything from servers to routers to the cloud is facing a crisis of confidence.”
What is happening now is a nightmare for big American tech firms. Foreigners are starting to pull their businesses away and are looking for non-US alternatives. The Chinese and Russian governments have already stopped using Microsoft. Germany has already switched to national email providers. Now imagine if the rest of the world follow suit.
Where data is the new oil, the cloud’s potential for growth is huge. Security and privacy concerns, however, are two big issues US-based companies have to deal with. Right now, these issues are threats that hurt their bottom line as more foreign customers turn to local providers.
Giant tech companies like Google, Apple, Yahoo and Facebook definitely have the resources to counter surveillance and cyber-attacks. But the question is, how soon can they win back customer trust?
Trump Comments on Stock Market’s latest drop – says it’s ‘peanuts’
Trump says Tuesday’s market drop is ‘peanuts’
President Donald Trump played down the stock market’s losses on Tuesday as “peanuts” when compared with the importance of striking a good deal with China and the gains since his election.
The Dow Jones Industrial Average “was about 16,000 or 15,000 and now it’s almost at 30,000,” Trump said at the NATO summit in London. “It’s going to be at 30,000.”
“If the stock market goes up or down — I don’t watch the stock market. I watch jobs. Jobs are what I watch,” he added. Today’s move is “peanuts compared to — we have picked up record numbers so that’s OK. That’s the way I feel.”
The major stock indexes slid Tuesday after Trump said he thinks it would be a good idea to delay signing a trade deal with China after the 2020 presidential election. The Dow Jones Industrial Average fell more than 450 points at its lows on Tuesday, led lower by trade-vulnerable Apple, Caterpillar and 3M.
“In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now, and we will see whether or not the deal is going to be right,” Trump told reporters before U.S. markets opened Tuesday. When asked if he had a deal deadline, he added: “I have no deadline, no. … In some ways, I think it is better to wait until after the election if you want to know the truth.”
Despite his assurances that he doesn’t watch the market’s daily moves, Trump often tweets within hours of when the U.S. equity market reaches an all-time high. He has tweeted the keyword “stock market” 107 times since his inauguration
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11 kids quotes we’re all feeling
Ok so there’s always that time when you just wish so bad you could straight up say whats on your mind, but you know you really shouldn’t, so you don’t. Well leave it up to kids to say exactly what you’re feeling, no hesitation or regret. Check out these kids quotes that say everything you wish you could!
Why do kids say the darndest things? Comment with your favorite!
How to become a better businessman in 6 steps; Priceless advice from Entrepreneurs
Become a better businessman in 6 steps following this priceless advice from accomplished entrepreneurs.
- “Do something you’re very passionate about, and don’t try to chase what is the hot passion of the day.”
Jeff Bezos accentuates having passion for what you are doing, because if you don’t love it you are much more likely to give up. It’s hard to take an idea and turn it into reality, especially by yourself or when people whom you respect tell you it can’t be done. The passion and love you give to your project will determine it’s success rate over time.
- “Don’t let people who you may respect and who you believe know what they are talking about tell you that it can’t be done.”
Pierre Omidyar continues to say that often they will tell you it can’t be done and that’s only because they don’t have the courage to try it.
- “If you know exactly who you want to be, you need to spend as much time [as possible] with people that are actually that already.”
This advice from Gary Vaynerchuk is actually priceless when it comes to success in the business world. Think as well “It’s not what you know but who you know,” and surround yourself with people you look up to. Human’s adapt to their surroundings quickly, and soon you won’t just want to be an entrepreneur, you will also know how to act like one.
- “Come up with 10 new ideas every day.”
Coming up with at least 10 new ideas every day will keep your “idea muscle” in shape, which is critical for an entrepreneur in order to keep going and stay ahead of the fast paced business world. James Altucher continues to say that once you’ve done this for about 6 months you will be an idea machine. New ideas keep passionate projects alive and ensure growth in every direction.
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- Realize that, “naturally, nobody is interested in your ideas. You have to persuade them, and you have to show them that you are the one person out there that can do it.”
Robert Greene, an American author known for his books on strategy, also says that “no one is really going to help you or give you direction.” Realizing this sooner than others will give you a head start and the ability to stop looking for recognition in others. Instead, you can focus on your passion project and make it perfect, and the world will not be able to ignore it.
More about ‘Mastery’ by Robert Greene
- “Don’t think about ‘how do I get big fast.’ That will happen if you build something meaningful and important.”
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Danae Ringelmann’s advice is not something to skip. If you rush your ideas or your product you will be relying on luck more than anything to create success for you. While luck is certainly involved in alot of things, relying on it or betting on it to ‘get big fast’ doesn’t help you become a better businessman. Being proud of what you create, instilling passion into your work, and working hard will ensure success more than anything.
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