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While the NSA kills Silicon Valley, Asian startups should gear up (Obama, again!)
Tech in Asia ^ | January 7, 2014 | Anh-Minh Do

Posted on 01/09/2014 4:23:08 PM PST by 2ndDivisionVet

These days, we read about the latest reports from Edward Snowden but they’re old hat now. We all know the American government is spying on everyone. But as more leaks come out, it’s increasingly evident that the NSA’s nefarious behavior will leave a deep scar on Silicon Valley.

Snowden whistleblowing and escaping from the NSA could be one of the most important boons for Asian tech companies and startups in the next decade. If, as Spiegel recently reported, the NSA has a backdoor into major US companies like Dell, Cisco, IBM, Western Digital, Seagate, and more, then Silicon Valley is screwed. No one will want to buy or open new contracts with Valley companies.

If you don’t believe me, take a look at how US spying jeopardized Boeing’s contract in Brazil. The Washington Post estimates that NSA snooping could cost US tech companies up to $35 billion. And that’s only the tip of the iceberg as the $35 billion estimate is only for cloud computing.

And even more close to home for Asia is the drop in sales of major corporations like Cisco and IBM. Cisco lost $1.7 billion in sales in Asia Pacific. IBM saw a 15 percent drop from August to October.

It’s now safe to assume that American tech products are compromised. The entire foundation of the internet, built on silicon, servers, hardware, and software of Silicon Valley, is suspect. If I’m a major corporation that has sensitive corporate information, there is no way I want the US government spying on it. This presents a huge opportunity for tech companies across the world that want to secure major B2B contracts as well as customers.

And the truth is, that trend is arriving in Asia. Huawei, equipped with its megalithic telecom, server, and hardware resources is poised to tackle the new opportunities. Ironically, it was just a few years ago that everyone looked upon China and companies like Huawei as unsafe. Is this still going to be the case going forward? In a few years time, we’re going to see the slow erosion of tech contracts migrating away from the USA and into Europe, Asia, and South America. It’s the tech companies that can guarantee security and quality in the face of the flight from the Valley. Are you ready?

TOPICS: Business/Economy; Culture/Society; Foreign Affairs; US: California
KEYWORDS: computers; economy; electronics; internet; nsa; obama; surveillance; unemployment
He's the anti-Midas.
1 posted on 01/09/2014 4:23:09 PM PST by 2ndDivisionVet
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To: 2ndDivisionVet

a few years ago the general customer attitude would have been to not trust the Communist Chinese... now it is to not trust the American companies for the reasons discussed in the article

an almost complete U-turn in consumer preference
and in a very short time, really

I would expect Japanese and Korean and ROC companies to benefit at least as much as those from Communist China, especially since they are all technologically very advanced already too. We will see..

2 posted on 01/09/2014 4:35:07 PM PST by faithhopecharity (no)
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To: 2ndDivisionVet

IMO, the NSA isn’t killing Silicon Valley.

What is killing Silicon Valley, and will kill the personal computing device market, is the utter refusal to make their devices secure.

BILLIONS upon BILLIONS of dollars are lost every year because of everything from simple pop-ups and malware to industrial espionage.

You buy a computer, then spend time and money, into the hundreds of dollars, the rest of your computer’s life trying to keep hackers and spammers from rendering your computer useless.

I work as a contractor at a government facility. Recently, I had to get a new laptop. Why? The old laptop was so full of security updates that it ran out of disk space. Even before it ran out of disk space, the computer was so loaded down with anti-virus protections that it slowed the computer to a crawl.

Microsoft Windows is a plague on Silicon Valley. Bill Gates knew in the late 80s and early 90s that his software architecture was SERIOUSLY flawed. Yet he persisted in pressing forward without fixing the flaws.

During the browser wars of the 90s, Microsoft, bought off, brow beat and obfuscated their way to dominance of the browser market. With that came the winning sweepstakes in the office suit war.

Gates won. Windows and Office became the de facto standard in the government. And the American public lost.

Yeah, you can be like the guy I worked with that would not use a Microsoft product. He would have to go to another floor to check his email and send email. That is really productive (sarcasm off).

3 posted on 01/09/2014 4:42:25 PM PST by Bryan24 (When in doubt, move to the right..........)
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To: 2ndDivisionVet

I find somewhat hilarious that anyone would think that Asian companies, especially Chinese ones, would be any less likely to have their intelligence agencies messing about with their tech companies products.

4 posted on 01/09/2014 4:53:20 PM PST by sinsofsolarempirefan
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To: sinsofsolarempirefan

Yeah, but who would we rather have spying on us personally: our more influential, nearby neighbors through their government connections, or the Chinese?

5 posted on 01/09/2014 5:30:25 PM PST by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: 2ndDivisionVet

Not much mention of Apple in this context. Nice to think they are clean, but that sounds rather optimistic.

6 posted on 01/09/2014 5:59:32 PM PST by conservatism_IS_compassion ("Liberalism” is a conspiracy against the public by wire-service journalism.)
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