News recently broke that cellular carrier T Mobile has lost much of the data stored on their customer's Sidekick brand smartphones. Microsoft, who was hosting the data services for T Mobile "in the cloud", had technical issues which may result in many of their customers losing all of their contacts, calendars, and photos. Ironically this service was hosted in the cloud to prevent data on individual phones from being lost if the phone had to be replaced.

Wall Street Journal article

Times Union article

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