New “Swiss Cloud”, post-NSA revelations

clouds dancing between buildings

Swiss Cloud, greater IT security is an argument

ZURICH, SWITZERLAND – Swisscom, Switzerland’s largest telecommunications company, is building a “Swiss cloud“, a move away from reliance on mainly US cloud service providers that the firm says is driven by a desire to cut costs and increase efficiency. But the move comes at a time when the revelations about spying by the US National Security Agency (NSA) appear to show that data stored in cloud services created by US providers may not be secure.

The company has been providing cloud services since 2010, but 24 October it published a white paper, the results of an in-depth survey in which 1,300 Swiss companies took part, showing that after improving efficiency that biggest concern of companies is data security. “This aspect is becoming more and more important for businesses as new and complex forms of hacking are significantly increasing the risk potential for companies”, Swisscom notes.

The argument is likely to appeal to non-Swiss firms looking for data storage services outside the US, post NSA-revelations that American companies’ data storage services were not secure.

Swisscom’s head of IT services Andreas Koenig suggested to Reuters in an interview that it will make more sense in future to store data in places, such as Switzerland, where privacy and data protection laws are very strict.