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Summary:

Report: Microsoft’s decision to beef up security around data transmission is more evidence that NSA revelations are hurting U.S. tech companies’ ability to compete.

NSA

Microsoft is moving to encrypt internet traffic flowing into and out of its data centers, according to a Washington Post report that cites people familiar with the emerging plans.

This is just the latest sign that NSA data scooping/snooping revelations have hit home for big American tech companies that worry that the news is hurting their ability to sell technology both at home and abroad. Recently, Cisco predicted a 10 percent sales slump for the current quarter, attributable in large part to customer backlash to government snooping.

In October, reports surfaced that the NSA was tapping into fiber optic links in and out of Yahoo and Google data centers. If the agency targets those two companies, it’s a no brainer Microsoft would also be targeted given its huge installed base. Last month, a Microsoft official indicated to a European Parliament committee on civil liberties that the company was not encrypting server-to-server data transmission but was reviewing that decision.

Now it appears that decision has been made. Google and Yahoo have also bolstered their encryption plans at least in part due to these revelations.

  1. This is all just marketing.

    Microsoft has a history of full cooperation with the US Government three letter agencies.

    In fact, according to Wired, Microsoft was asked to purchase Skype because the NSA wasn’t able to monitor the communication. Recall the privacy legalese which was removed after MS took them over?

    It is best to avoid US Based technology companies if privacy is important.

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    1. Marketing? No…

      Just good old lies and smoke and mirrors… all in the names of retaining profit in light of the leaks…poor show

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    2. Marketing? They must think we are stupid… I encourage everyone with time on there hands to register accounts on the involved companies servers and just spout drivel on the internet to keep them busy ;)

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    3. Sorry, Microsoft did not spend $8.5 billion dollars to buy Skype because some federal agency asked them to. That’s just the dumbing internet BS I have read this month. Do you actually believe that? Do you hate Microsoft (for whatever reasons) to believe such BS?

      Do I think that MS cooperated with the US government after 911? Sure, the US was so blinded by fear and patriotism that both political parties enacted the Patriot Act and approved two pointless wars. The DHS was created after that time. But to I think my data is any less private on MS than, say, Google or Apple? No. Anything you put online, in the cloud, digital calls you make over your phone, photos, GPS data, emails, texts, etc can and might have been collected.

      If you hate Microsoft, hate them for other reasons, there are plenty reasons to do so.

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  2. “Security whitewash” has become the new P.R. tactic for the Prism-friendly companies. Journalists, please refuse to participate.

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  3. Too little, too late.

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  4. And to think the Enigma Machine was built in the 30s ….

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