Cisco Admits That Foreigners Afraid Of NSA Revelations May Have Hurt Latest Earnings
from the and-so-it-begins dept
From very early on in the NSA leaks, I wrote that the tech industry should be furious about the NSA revelations because it was inevitably going to harm them tremendously. It’s taken a while, but we’re seeing more and more companies recognize (finally) that the NSA can have a real impact on business. On Cisco’s earnings call (which wasn’t good), the company admitted that fears about the NSA in other countries is likely having an impact, albeit small for now.
“I do not think it is the major factor across all of emerging. I do think it is a factor, however, in China,” Chambers said.
“It’s not having a material impact. But it’s certainly causing people to stop and then rethink decisions, and that is, I think, reflected in our results,” said Rob Lloyd, president of development and sales.
And this is why the tech industry needs to be a lot louder on these issues, and to actually take it seriously. There’s a very real economic impact. The more recent revelations about the NSA hacking into Google and Yahoo’s data centers should be a wake up call to even more tech companies, though, unfortunately it appears that many still want to hide under the radar.