Cisco Systems, one of the largest networking equipment sellers in the world, has been losing major business in the wake of the NSA spying scandal. The company has publicly blamed the NSA for sowing distrust between American technology companies and the rest of the world – potentially costing them billions.
Cisco announced two important things in today’s earnings report: The first is that the company is aggressively moving into the Internet of Things—the effort to connect just about every object on earth to the internet—by rolling out new technologies. The second is that Cisco has seen a huge drop-off in demand for its hardware in emerging markets, which the company blames on fears about the NSA using American hardware to spy on the rest of the world.
And guess who is losing their appetite?
Cisco chief executive John Chambers said on the company’s earnings call that he believes other American technology companies will be similarly affected. Cisco saw orders in Brazil drop 25% and Russia drop 30%. Both Brazil and Russia have expressed official outrage over NSA spying and have announced plans to curb the NSA’s reach.
So not only has the NSA trampled all over the Constitution they are now wrecking overseas business opportunities for US companies because no one wants to install spyware.
This completely unexpected turn, which Chambers said was the fastest swing he had ever seen in emerging markets, comes just as Cisco is trying to establish itself as a bedrock technology provider for of the internet of things, which industry analysis firm IDC says will be an $8.9 trillion market by 2020.
Freedom isn’t free, and neither is tyranny.
But can anyone blame Brazil, Russia, and other emerging market countries for being wary of Cisco and other US technology companies? They are collaborators with an empire that is trying to develop/has developed a worldwide surveillance canopy over the planet. They spied on Brazil’s president.
Why would anyone who didn’t have to do business with NSA tools?