I can't help but disagree -- they are caught between a rock and a hard place. Following the demands of one Federal government (Brazil) will result in them violating the laws of another (US).
They are fighting for a unified legal regime that spans across all international boundaries.
And god damn would I be willing to pay top dollar for such a feature. Do you hear me $every_tech_company? I'll be more than willing to put my market demand where my mouth is, give me client side encryption and/or self-hosted versions of your products and I'll happily write the check.
It's kind of a red herring to connect these two. The case here involves the government seizing data from a foreign data center. Were Microsoft to lose, this says to foreign customers that any time the US government wants some information stored overseas, they will get it. Obviously not good for business.
Here in the states, Microsoft is going to collect everything it can about its customers and store it (and from there I imagine it eventually goes on in some form to the NSA).
So your argument is that people and organizations worried about having their data seized in the US is not bad for business?
Most individuals didn't really care too much when the NSA documents were released but businesses sure did. Our security and privacy pitch to the management was bumped from, "would be nice someday" to "make it happen."
