Cloud Companies Move to Canada
Today, one of the most popular Google searches is “non-Us cloud-based companies.” Cloud users not living in the states have been frightened away by government spying. That's not good news for cloud hosting companies based in the USA. But, it might be good news for cloud companies in other countries.
The question is, though, is cloud hosting in other countries really safer? To bring that point more to home, is cloud hosting in Canada safer? Canada is the United States' closest neighbor, and the two often agree on many topics. So, why would Canada prove to be a safe haven for cloud hosting clients?
One Very Good Reason Why Canada Is Safer
It all boils down to one thing: The Patriot Act. Let's take a closer look at what The Patriot Act actually is – because, sometimes, the terms of this act are more than a little bit muddled.
From Wikipedia: “The USA PATRIOT Act of 2001 is an Act of Congress that was signed into law by President George W. Bush on October 26, 2001. The title of the act is a ten-letter acronym (USA PATRIOT) that stands for Uniting (and) Strengthening America (by) Providing Appropriate Tools Required (to) Intercept (and) Obstruct Terrorism Act of 2001.”
The act was instated in order to “obstruct terrorism,” but it's the very act that the NSA is relying on to take down sites, pry into user details, and cause a major stir-up where cloud based companies are concerned. It's also an act that does not exist in Canada. The Canadian government cannot intercept private information from a Canadian company without a proper search warrant.
However, jurisdiction laws do apply in Canada, so it matters where companies are based. Still, that warrant is needed in most cases. If you're looking to set up a cloud hosting company in Canada, it will pay to read through provincial laws first. That said, there is now a large opening in Canada for new hosting companies, though it's currently a niche market.
Niche Is the Word In Canada
Cloud hosting companies that do exist in Canada have gone the opposite direction of bigger companies like Amazon. Fearing the fight against a corporate giant that might come to Canada, these companies have found niche markets instead of trying to appeal to the general population.
One great example of a Canadian niche cloud hosting company is FreshBooks – the popular cloud-based invoicing tool. FreshBooks is just one example, but cloud companies in Canada are a lot more targeted. If you are considering the cross-border move as the owner of a cloud hosting company, think about finding a niche that hasn't been set up yet. Canadians seem to like niche hosting.
Cloud Companies Move to Canada: Is Canada a Good Move?
If you want to set up a cloud hosting company, Canada might be a great place to go. But, beware: the competition is about to get rather tough. With bigger companies looking to move out of the USA to avoid major revenue losses as businesses from other countries cut ties, smaller hosting companies in quiet Canada may be gobbled up.