> This is nothing to do with tech companies.
The same companies whose product is customer data and usage patterns? That they use to develop behavioural models, affinities and recommendation engines?
It's one thing when you are a device maker and are required to provide in-country servers and backdoor access as a condition of doing business. Blackberry (then RIM) caught heat for that in 2011 when they provided that to India and the UAE.
It's a different thing entirely when gargantuan companies like Amazon or Google that control a significant part of the Internet's infrastructure begin to shift away from public-facing business models and towards high-margin contract work for governments.
You said it yourself:
> Government have lot more money and resources to fund such efforts
and they're adept at wasting it as well. You don't think Amazon, Google etc look at IT contracts in the public sector and salivate at the opportunity?