Summary
This week was a bad one for Microsoft, T-Mobile and “the cloud” with the announcement of the Danger customers’ data losses. Despite the setback, the cloud will continue to gain popularity and continue to shape the digital media, entertainment and communication world.
Analysis
Microsoft and T-Mobile had a bad week when Microsoft / Danger effectively lost T-Mobile Danger users’ data, including photos, contacts and calendars. Outright data loss is rare, especially when dealing with Internet and communication leaders, so this was a shock to many. While the issue may be related to Danger’s data management architecture, the Danger acquisition was announced a full year-and-a-half ago, giving Microsoft ample time to improve the Danger’s data storage capabilities.
Some in the mobile industry might see this as an opportunity to poach Microsoft / Danger customers with other mobile offerings, including Google Android solutions. The irony is that some of Danger’s founding team left the company to start Android, which was acquired by Google and is now the foundation of Google’s mobile strategy, and leveraged by handset manufacturers, including HTC, Motorola, Samsung and LG.
The future of mobile, corporate and home entertainment is tied in part to the success of the “cloud” for data storage and access. Once storage is removed from a physical device or network, access to data becomes unencumbered by location - all one needs is access to the Internet and authority to access data in the cloud. In order to advance cloud services, leading Internet properties like Google, Facebook, Yahoo, Microsoft and AOL, as well as companies that sell and promote cloud-based services, would do themselves well to disclose their cloud policy and provide users with service level assurances as well as backup options.
The industry has a lot riding cloud-based technologies, and despite this latest snafu, the industry will move ahead and cloud-based solutions will be an integral part of the future of digital entertainment and communications.
Tal Raeside consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
