SAP may build a second data center in Australia to meet customer demand for locally delivered cloud services in the wake of revelations about the National Security Agency's Prism surveillance program.
"When I talk to the public sector, it's clear they will only consume cloud if we can guarantee their data stays here in Australia. And we are ready for that," SAP co-CEO Jim Hagemann Snabe said in a recent story in the Australian Financial Review.
Former NSA contractor Edward Snowden's leaks about the agency's spying programs have changed the game for tech vendors, Snabe told the AFR.
"What we see today is that the first question asked in Europe and Asia is, 'Where is your data center?' and the second is, 'Can you guarantee that the data stays in that physical location?'" Snabe added.
Any notion that the vendor is cashing in on the NSA controversy is "overstated," said SAP spokesman James Dever.
"We're building out a network of global data centers; that's... in our plans," Dever said, noting that "many companies" have said for years that they prefer "a local or regional option for [housing] their data."
"The global network gives us an advantage, NSA or no NSA," he said.