Microsoft’s General Counsel Brad Smith meeting with Chinese vice minister of commerce Wang Chao earlier this month. Microsoft is seeking to assure customers like China that it’s not handing NSA backdoors to their networks. China Ministry of Commerce Google and Yahoo have already announced measures they are taking to secure user data in the wake of the revelations about the NSA surveillance of their internal networks and of external user Web traffic.

Now Microsoft has joined in the trend, moving to expand the company’s use of encryption for both its internal and external networks—promising cryptographic protection across the board by the end of 2014.

While Microsoft already encrypts much of its data, the move to be more transparent about measures to protect customer privacy comes as the US cloud industry faces losses of customers.

The New York Times reports that Forrester Research projected that US cloud providers could lose as much as a quarter of their revenue—$180 billion—over the next three years as a result of the NSA revelations and a loss of confidence in American IT companies.

And Yahoo’s moves to protect its data have been largely criticized as too little and much too late, particularly as documents leaked by Edward Snowden showed that the company was at times the largest source of data for NSA surveillance. Microsoft’s announcement goes beyond beefing up its encryption.

The company is also seeking to expand the legal measures in place to protect customer data, including doing more to fight gag orders placed on the company that prevent it from notifying customers when it receives FISA warrants or other legal orders associated with their data.

And the company is “enhancing the transparency of our software code” to allow customers to verify the absence of backdoors, according to a blog post Wednesday evening by Brad Smith, Microsoft’s general counsel and executive vice president for Legal and Corporate Affairs.     

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