Updated: Massive Sidekick Failure Reveals That Cloud Computing Is Not Fool Proof

T-Mobile Sidekick LX

T-Mobile is warning Sidekick owners that they may have permanently lost data from their phones, including photos, contacts or calendar entries, and because of a continued data outage has suspended sales of all new devices.

On Friday, T-Mobile USA wrote a letter to Sidekick users, saying “we must now inform you that personal information stored on your device – such as contacts, calendar entries, to-do lists or photos – that is no longer on your Sidekick almost certainly has been lost as a result of a server failure at Microsoft/Danger….the likelihood of a successful outcome is extremely low.” Sidekick is owned and operated by Danger, a Microsoft (NSDQ: MSFT) division. Problems have been on-going for at least a week. The outage is a reminder that there can be problems even when data is backed up to the cloud. Apple (NSDQ: AAPL), Microsoft, Nokia (NYSE: NOK) and others are all jumping into the business of backing up phones — a catastrophe of this size by a company that should know better, should be a wake-up call to all.

UPDATE: T-Mobile has sent out a new message to Sidekick users, saying that “recent efforts indicate the prospects of recovering some lost content may now be possible.” Sidekick users will be compensated by getting a free month of data service. For those customers who suffered significant and permanent loss, T-Mobile will be sending a $100 gift card. More details will be sent out in the next 14 days.

Customers are expected to receive a status update today, however, spokesmen from both Microsoft and T-Mobile have not replied to emails seeking comments. To avoid losing data, users should not reset the phone, or remove the batter or let the battery drain all the way down, the company said. Most of the company’s communication so far has been through its Sidekick forum here.

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