Sidekick disaster will ultimately co$t Microsoft – big time! UPDATED

powered by danger

Additional insiders have stepped forward to shed more light into Microsoft’s troubled acquisition of Danger, its beleaguered Pink Project, and what has become one of the most high profile Information Technology disasters in recent memory.

The sources point to longstanding management issues, a culture of “dogfooding” (to eradicate any vestiges of competitor’s technologies after an acquisition), and evidence that could suggest the failure was the result of a deliberate act of sabotage.

What starts out reading like high tech conspiracy theories becomes more real as you follow the details, follow the money, follow the office politics.

Ultimately, resolution of the damage done to T-Mobile, the Sidekick brand which they own, will come down to cash. Lots and lots of cash.

Even before the data center failure, T-Mobile and Microsoft were at odds over the future of the Sidekick platform and the Pink Project’s goal to break the exclusive agreement Danger had formed with T-Mobile as a long term partner…

Following Microsoft’s Danger data server crisis, things have moved from tense to catastrophic. T-Mobile owns the Sidekick brand, and the cloud services failure associated with its brand will likely decimate the million active Sidekick subscribers T-Mobile maintains, despite the fact that the mobile operator did nothing wrong.

T-Mobile has an SLA (Service Level Agreement) with Danger/Microsoft, which is a standard legal document for these types of relationships, one that requires Danger/MS to reimburse T-Mobile with defined monetary penalties if the service goes down for longer than x minutes, etc…

“T-Mobile is now getting blamed for something which isn’t their fault at all, and a million plus customers are now seriously considering leaving for the iPhone or elsewhere. I’m also thinking that a class-action lawsuit on behalf of those users who lost all of their data (contacts, notes, emails, SMS’s, tasks, calendar entries) is now quite likely, and once again T-Mobile is going to be caught in the crossfire, even though the servers were all run by Danger/Microsoft and not T-Mobile.”

RTFA. Wander through each aspect of this project, mishandled and mismanaged, reflecting a corporate culture as bad or worse than anything outsiders have joked about – inside Microsoft.

T-Mobile – Deutsche Telekom – has deep enough pockets to take Microsoft over any legal hurdles they wish to for compensation for their loss of clients, loss of business and loss of reputation. That’s a whole lotta 9’s.

UPDATE: A week later, it appears much of the data is finally being recovered. What is retrieved will be pushed to Sidekicks that weren’t turned-off. The lawsuits will continue to grow.

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