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Is The PATRIOT Act Stifling Cloud Adoption Outside Of The US?

According to recent Forrester research, “security concerns” and “integration challenges with other applications” are the primary reasons firms aren’t interested in software as a service (SaaS). This week Forrester’s Stefan Reid wrote about the Informatica Cloud Summer 2010 release and pointed out another reason: The USA PATRIOT Act.

Stefan’s post, Informatica’s Cloud Service Is Especially Flying Under The Radar For European Customers, notes that due to the PATRIOT Act, “European back-office manager will probably not even listen to an American vendor offering a cloud computing integration service.” Interesting.

The good news, according to his post, is that this objection is not relevant for Informatica Cloud Services, due to the Secure Agent architecture. As he explains:

“…the real data flows between various on-premise systems or between European-hosted SaaS apps and the on-premise landscape directly. No data flows via the US. Suddenly, the Informatica cloud becomes exciting to back-office managers globally and especially to traditional customers in Europe.”

I’ve outlined how data is not staged by Informatica Cloud Services in the past, but Stefan makes some useful points in terms of the privacy benefits of the cloud integration architecture for European customers. Be sure to read his entire post and share your feedback. Is the PATRIOT Act really stifling adoption of cloud services outside of the US?

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