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Sidekick outage may have cost MS $700,000 per day

updated 05:55 pm EDT, Thu October 15, 2009

MS may pay multi-million fine over Sidekick

Microsoft may owe T-Mobile millions of dollars for its just-concluding Sidekick outage, an inside tip may have revealed today. Like most carriers, T-Mobile is believed to have a service level agreement (SLA) with Microsoft and Danger to guarantee uptime but may have a particularly costly deal with Microsoft. The MobileCrunch source claims that Microsoft will likely pay a rate roughly equal to $700,000 per day for the period it couldn't guarantee 99.5 percent availability of Sidekick services.

As the last failure invoking the fee was in 2005, when Danger was still independent and had fewer subscribers, the actual penalty is likely to be higher, the contact says. If real, the SLA would lead to Microsoft owing $9.8 million or more given the approximately two-week absence of Sidekick data.

None of the involved parties have commented on the accuracy of the rumor, but the sum would further compound damage to Microsoft's reputation following multiple lawsuits that have already been filed this week. These and critics have also accused both Danger and Microsoft of depending almost exclusively on online-based storage to keep users' Sidekick information and for not having a known working backup on-hand.

By Electronista Staff


  1. slapppy

    Fresh-Faced Recruit

    Joined: Mar 2008


    Not a problem

    That automatic generating revenue system we have is working just fine. Will cover lots of our s**** up and money losing products for many years to come. :-)

    Comment buried. Show
  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008


    Microsoft said to be recovering data

    for Sidekick users. I think if Microsoft can recover, say, 90% of the users data and promise it won't happen again, they should be given a stern warning and forget the whole thing ever happened. If Microsoft and T-Mobile want to give Sidekick users who were slightly inconvenienced a couple of weeks of free service, all well and good. I think that will make all concerned parties feel much better. Microsoft is busy getting Windows 7 to market and shouldn't let small things like this ruin the Windows 7 party atmosphere. Sidekick users hardly count in Microsoft's grand scheme of ruling the desktop computer world.

  1. appleuzr

    Fresh-Faced Recruit

    Joined: Aug 2006


    comment title

    make em pay!

  1. darkelf

    Fresh-Faced Recruit

    Joined: Nov 2003


    less than 10 million...

    less than 10 million dollars? big deal. microsoft blows that kind of change rearranging the chairs in the employee cafeteria. i doubt it covers buying antiperspirant for ballmer for a week.

  1. climacs

    Mac Enthusiast

    Joined: Sep 2001


    $700K a day? not enough

    considering the damage to T-Mobile's reputation.

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008


    What outage?

    There was no outage. I don't remember any outage. Microsoft claims it was a barely indiscernable glitch in the Matrix. Whatever it was it will be brushed under the rug and in a week everything will have been forgotten.

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