How the NSA is hurting America’s tech industry — and helping China’s

The recent revelations about internet surveillance by the National Security Agency have created a “level of uncertainty or concern” among Cisco System’s customers internationally, says CFO Frank Calderone — and that has contributed to sliding demand for Cisco’s products.

Last quarter, new orders fell 12 percent in the developing world, with orders in Brazil down 25 percent and Russia down 30 percent. The governments of both Brazil and Russia have expressed serious concern over the revelations about NSA surveillance programs leaked by Edward Snowden. And Cisco isn’t alone — IBM’s sales have also fallen on similar concerns.

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