NSA spygate concerns prompt Microsoft to encrypt its internet traffic — Tech News and Analysis

NSA spygate concerns prompt Microsoft to encrypt its internet traffic: Microsoft is moving to encrypt internet traffic flowing into and out of its data centers, according to a Washington Post report that cites people familiar with the emerging plans.

This is just the latest sign that NSA data scooping/snooping revelations have hit home for big American tech companies that worry that the news is hurting their ability to sell technology both at home and abroad. Recently, Cisco predicted a 10 percent sales slump for the current quarter, attributable in large part to customer backlash to government snooping.

In October, reports surfaced that the NSA was tapping into fiber optic links in and out of Yahoo and Google data centers. If the agency targets those two companies, it’s a no brainer Microsoft would also be targeted given its huge installed base. Last month, a Microsoft official indicated to a European Parliament committee on civil liberties that the company was not encrypting server-to-server data transmission but was reviewing that decision.

Now it appears that decision has been made. Google and Yahoo have also bolstered their encryption plans at least in part due to these revelations.