John C Dvorak's column from Friday highlights a key point about Microsoft and the NSA spy program. First, a quick catch up. Over the weekend, the UK Guardian alleged that Microsoft had cooperated with the NSA in setting up systems to make it easier to spy on users who use their cloud products.
The point John C makes and the media seems to be missing, is the economic impact of this scandal. We live in an interconnected global economy. It would seem logical to me for non-US companies and organizations to think twice about using any US based cloud service. All these services rely on a great deal of trust. If that trust is damaged, the economic impact could be substantial.
But the solution seems quite simple. Simply provide better encryption systems that are more resistant to tampering. This would make everyone happy except maybe the US government. :)