Regaining Trust in Europe

Ever since the revelation of PRISM last summer, many European companies using U.S.-based cloud computing providers have been very nervous. They fear their data is no longer protected within the cloud if the prying eye of the NSA (National Security Agency) has access to it. The levels of trust in the U.S. market are starting to erode.

The PRISM bombshell seems to have had nothing but negative fallout, and the long term economic consequences for U.S. tech markets could be lasting. The Information Technology and Innovation Foundation (ITIF) found that:

  • of the $13.5 billion the cloud computing business generated this year, $5.6 billion came from outside the U.S.;
  • the cloud computing market is projected to become a $207 billion industry by 2016; and
  • global cloud computing spending is expected to grow 100 percent or more by 2016.

The cloud computing market is growing, but unfortunately, not for U.S. companies. If they lose even 10% of their European clients, they are expected to lose more than $35 billion by 2016.

Many European tech markets are now jumping at the chance to establish themselves in cloud computing to prove to customers that they will provide the most security and protection within the cloud. They’re using the PRISM scandal as a way to boost their own cloud computing economy, while the U.S. market tries to pick up the pieces of its damaged reputation. European companies are also trying to prove that data is safer with them under the European Commission Directive on Data Protection (ECDDP), which regulates data within the European Union and is an important part of EU privacy and human rights.

Around 500 members of the Cloud Security Alliance were recently surveyed and 10% of the non-U.S. participants claimed that they have already canceled a project associated with a U.S. cloud provider, while 56% said there were less likely to use a U.S. cloud provider in the future. This is just a rough estimate, but with cloud computing spending climbing higher than any other form of IT spending, it doesn’t bode well for U.S. companies.

SingleHop is a U.S.-based hosted IT infrastructure and cloud computing company that operates within Europe due to our recent expansion of a data center in Amsterdam.

Transparency is one of our central philosophies, so we are upfront about our core operations and how we handle our customers’ data. We only comply with validly issued government orders that have been vetted by our legal team..

SingleHop offers layers of protection with our Data Sovereignty and Safe Harbor policies to help European customers feel safe. We’re also looking towards compliance with the European Commission’s law that is planned to take effect in 2016, the General Data Protection Regulation (GDPR), to help meet our European customers’ growing needs. What this means is that SingleHop would inform its customers if information or personal data is being collected and we must get permission from our customers to pass on info or data to third parties.

SingleHop is committed to the privacy of its customer’s data.  Our European operations are compliant with the laws of their jurisdiction, and requests for information will be handled according to the laws that govern that data.