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Big Blue massages Chinese cloud fears

by on08 August 2014

No need for yellow river over US spooks

IBM is trying to unlock Chinese fears that the US might be spying on them through Big Blue cloud technology. Since the NSA spying programme was revealed, China has been reluctant to hire US companies because they will be effectively giving their data to American spooks.

IBM said that it will provide cloud-based risk analysis for a Chinese financial data firm in a deal that executives think will serve as a model for future business in China. Under the new software deployment model, financial data provider Shanghai Wind Information will send publicly available data to IBM's cloud for risk analysis without having to disclose specific portfolio holdings or having to install IBM software or hardware on its servers.

This means that IBM never receives client information and therefore cannot give it to the American government. IBM added that the new business model "continues to comply with the local laws, including data privacy laws in China and in all countries in which it operates."

IBM has been particularly targeted for Chinese sanctions due to the sensitive and critical role its servers play in practically every major industry from banking to energy. IBM believes the new cloud-based deployment model would help it succeed in the market.


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