Sidekick Fiasco Could Be Costing Microsoft Millions

If it's any consolation – okay, so it's probably no consolation at all – this is a very expensive 'woopsie' for Microsoft. A tip sent to Mobile Crunch reports that the outage could have cost Microsoft as much as $700,000 per day.

But how, you say? Well, you know the way it's been T-Mobile that's been offering all the consolation prizes for this one? This is because when people signed their contracts, they were promised a certain level of service. Similarly, T-Mobile signed a service level agreement with Microsoft so it could guarantee customers a good service. With us so far? Good, let's move on.

Unfortunately for Microsoft, if the tipster is to be believed, T-Mobile has a pretty pricey SLA with Microsoft and Danger. We're not using the word pricey lightly here, folks. Word on the street puts the numbers at $700,000 per day for the period Microsoft and Danger couldn't guarantee 99.5 percent availability of Sidekick services. Electronista points out that this would mean Microsoft owes T-Mobile $9.8 million or more given the approximately two-week absence of Sidekick data. Now that's a lot of moolah.

Read more here.

  • trih
    Electronista points out that this would mean Microsoft owes T-Mobile $9.8 million or more ... Now that's a lot of moolah.

    Not to Microsoft it isn't
  • ssalim
    Yes it is. 9.8M is a lot of moolah even to Bill Gates because rich person or company is careful with their money.
  • Shnur
    well, it's all just money, the important part is if the trust between the companies... if that happens that much, contract could be broken, and that's a lot more money lost than 9.8m$...
  • g-thor
    Simple solution - all the top execs kick in $500,000 each from their annual salary and they bail MS out. They win in the long run.

    PS (I'm not serious - but I may still get flamed.)
  • maigo
    For the love of god, why isn't this all stored locally on the phone?
  • CChick
    maigoFor the love of god, why isn't this all stored locally on the phone?
    Because sidekick is nothing but a pathetic junk from Sharp, it doesnt have much local memory for storage.
  • ossie
    That's why micro$uxx suddenly claims to have recovered most of the lu$er data, after their initial estimations claimed quite the contrary?
    Don't cry too much for "poor" m$, they have more than enough fankiddies to buy billy boy's crap, that will compensate any lo$$.
  • knowing Micro$oft they'll get their lawyers to point out some loophole in the wording of the SLA that means they're not liable for most of it, e.g. maybe the penalty only applies if you can't connect to the "cloud", regardless of whether or not your data is still there.
  • compulsionnra
    It is ridiculous that there was no local backup or even an option to do a PC backup. If my PDA/phone couldn't do a PC backup I wouldn't have bought it.
  • MitchMeister-
    You know what I love, people who think they are clever and original by using dollar signs in place of a "s" in anything regarding Microsoft. Man, have never seen that before. So I'm assuming you don't use any MS products in your life since you seem to not want to give them any cash. Or better yet, you use a Mac! Cause Apple doesn't want your money at all, with products that cost twice as much for the same hardware just to have their wonderful software. Or you could be cool and use Linux because it's the "in" thing to do and you want to "fight the man" (not because it's an excellent open source software). Either way, you're still a tool, get over yourself and you'll realize that; yes, they are a large company making a lot of money, but the PC wouldn't be anything near what it is today without them.