Yesterday's article in The New York Times about concern over nuclear arms in Asia is long overdue. This is something that I have been concerned about for years. Any American company that has a data center in India could be toast. This risk is bigger than the ones many financial institutions have taken by not allocating money for better security domestically. How many times have you heard that a particular company will offer its customers free credit monitoring for a year because their data has been compromised. That's nothing compared to the potential physical meltdown of a company's data center. As an investor, I worry about that.
There are backups, but that may be too little too late in this scenario. It wasn't just jobs that have been outsourced to India; it's security. It's a company's lifeline. Whatever money the company has saved by not upgrading firewalls and penetration software and by hiring cheaper labor overseas and temporary workers domestically can be gone in one explosion. Not a pretty picture and that's without even thinking about the consequences to the land and to people's health.
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