T-Mobile_Sidekick

There is no bigger technology story this week than the server meltdown at Microsoft which wiped out the personal data for a still unknown number of T-Mobile Sidekick users.

(Incidentally, the best, most comprehensive reporting can be found at CNet News.com, which has the story covered from every angle.)

As the story is still unfolding – we still don’t know exactly what caused the failure, how many users were affected or how this will affect the companies involved – here are some observations about what has transpired thus far.

  • The incident may highlight the fragile nature of cloud computing but shouldn’t dampen enthusiasm for the concept. After all, there is nothing inherently insecure about cloud computing, but it is only as “safe” as the procedures and policies in place to protect data. That said…
  • CIOs who are considering moving any data into the cloud would be very wise to ensure that their service provider has bulletproof procedures and backups in place to protect data.
  • Microsoft is making a mistake by pointing fingers. The company has not yet come clean about what caused the server failure but has said that the problem was not with its own technology but that of Danger, the company it acquired last year which developed the Sidekick. Memo to Microsoft: it does not matter whose technology it was. The responsibility to protect the data is yours and yours alone. You failed miserably. That said…
  • T-Mobile must shoulder some of the blame for failing to ensure that Microsoft had the proper backups in place to prevent data loss.
  • Microsoft and T-Mobile will take hits, potentially long-term hits, from the debacle. T-Mobile has promised a free month of service and $100 gift card to affected users. Will some customers be irate enough to cancel their service altogether? The impact on Microsoft will be more profound. Its credibility certainly suffers a blow, particularly as it tries to make inroads in stability and mobility. Further, what will the future of the relationship be between the two companies? It’s likely that Microsoft has not met its service level agreement, which may give T-Mobile a reason to switch partners.

Lisa