Cloud Host Loses All Customer Data – Says Sorry

As companies move their systems to the cloud, there is a new risk and it is real.

That risk is that your cloud hosting provider has a problem and loses ALL of your data.

Check your cloud hosting agreement. See if it says that they are liable if all of your data gets flushed down the virtual toilet. While I would never say never, it would be incredibly unlikely if they say they are liable.

It is possible that your cyber risk insurance will pay to help you recover your data but two things. First, it may be impossible and second, how long will it take.

In either case, your customers will likely sue you.

The tactic de jour for class action attorneys is claiming your were negligent.

After all, if you did things right you would not have lost their data. That is hard to argue with.

We have seen case after case of cloud hosting providers losing data and saying something to the effect of “sucks to be you”. This includes Microsoft and Amazon and a lot of others.

This week it is Cloud Nordic, based in Denmark, but we have seen this happen with providers all over the world.

On Friday August 18th they sent a letter to their customers. Hackers got in and installed ransomware and shut down all of their systems including websites, email, virtual servers, everything.

The company says that it does not want to and cannot meet the demands of the hackers.

They have engaged experts who say that damage is too great and the data cannot be recovered.

THEY ARE NOT OFFERING ANY COMPENSATION TO CUSTOMERS FOR THIS “UNFORESEEN SITUATION”. Actually, that is normal. They recommend that you contact your insurance company.

The company is considering filing for bankruptcy.

This is not that unusual. In the shared responsibility model of cloud computing, you are responsible for your data.

If you have already taken of this, good for you. If not, you need to consider what will happen if this occurs to you.

You need to think bigger than Microsoft or Amazon. What about your payroll provider? HR service? Industry vertical applications? CRM?

None of those providers guarantee recovery of your data.

To Quote Clint Eastwood – do you feel lucky, punk?

Need help, please contact us.

Credit: Cybernews