The Great NSA Debate has Companies Moving to Canada

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This week, privacy advocates around the world staged a protest online in an attempt to protect their data and company information from the world’s government intelligence agencies. Over 6,000 websites took part in the protest, which was branded as “The Day We Fight Back” campaign, by displaying banners at the bottom of their web pages to encourage individuals and companies to participate. Heavy hitters like Google, Twitter, and Mozilla took part in the protest.

Even though the protest itself was more of a whimper than a roar, the controversy over government surveillance still had a significant impact on the businesses economy south of the Canadian border. A recent estimate completed by the Information Technology & Innovation Foundation stated that the American economy could stand to lost up to $35 billion in lost revenues as a result. Because of our proximity to the U.S., skilled workforce, cold climate, and affordable energy sources, Canada is a very ideal location for businesses who no longer want to house their data in the States. Several businesses have already made the move to a Canadian-based data centre, including European banking and insurance firms with operations in the States as well as American retail outlets and oil and gas companies.

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Telus and Rogers are expecting data storage sales in Canada to increase by 20% this year, not including the number of businesses seeking refuge from the ever-watching eye of the NSA. Though it would be naive to assume to any data stored in Canada is fully exempt from government surveillance, there are stricter rules on what government agencies can access. The Canadian Privacy Act, established in 1983, limits the amount of personal information the government can collect, use, and disclose.

So what does this mean for Canadian businesses? With more businesses looking for storage in data centre colocation facilities, there will be increased competition for space. Data centres are a finite resource. Once the space is gone – it’s gone, putting pressure on Canadian companies to get their foot in the door before the data centre is full. Many companies will also be looking to utilize cloud computing services, further driving the demand.

There will also be an increased need for bandwidth as businesses transfer data to their colocation facility or cloud, so obtaining a reliable and secure high speed connection is critical. In order to obtain the full benefits of cloud computing, users will require a symmetrical connection so they can upload and download data at an efficient rate.

To learn more about Canadian data centres, click here.

Blog Author: Vanessa Hartung

Comments

  1. Great post.

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