Microsoft Corporation (NASDAQ:MSFT) tried to reassure its worried international business customers late Wednesday. The Seattle-based software giant said that it will go to court against intelligence agencies attempting to seize data about its foreign customers. Microsoft Corporation (NASDAQ:MSFT) believes that U.S. intelligence agencies aren't entitled to acsess user data stored abroad. The company also claims it has never turned over any foreign customers' data under the Foreign Intelligence Surveillance Act, reports Joseph Menn of Reuters.
Microsoft to use best-in-class cryptography
Microsoft Corporation (NASDAQ:MSFT)'s General Counsel Brad Smith said that the company would encrypt data from all of its services including Office 365, Outlook.com, Azure and SkyDrive. The company officials approved the encryption initiative last week. Microsoft Corporation (NASDAQ:MSFT) didn't reveal the budget or timeline for the encryption efforts. But the company promised to use "best-in-class cryptography."
Yahoo! Inc. (NASDAQ:YHOO) and Google Inc (NASDAQ:GOOG) have already taken similar moves after reports that the National Security Agency had intruded into their foreign facilities without oversight by the Foreign Intelligence Surveillance Court. According to reports leaked by Edward Snowden, NSA had successfully tapped in their database, and targeted Microsoft Corporation (NASDAQ:MSFT) as well. Smith said the report was like an earthquake for the tech sector. It revealed that the government spying was happening through brute force rather than known legal processes. Now tech firms must protect their reputations.
Microsoft to increase the use of regional centers
Microsoft Corporation (NASDAQ:MSFT) said that it doesn't think the government authorities would order it to install spyware on users' machines. Certain governments are concerned over U.S. "back doors" in the Seattle-based company's software. So, the company plans to increase the use of regional centers that will help such governments inspect the source code.
Its rival in cloud business, Amazon.com, Inc. (NASDAQ:AMZN) said it has tools that help customers encrypt their data. Furthermore, if there is a legal notice seeking access, Amazon.com Inc. (NASDAQ:AMZN) warns its customers.
Microsoft Corporation (NASDAQ:MSFT) shares rose 0.13% to $38.99 in pre-market trading Thursday.