When Your Cloud Storage Company Goes Bust…

Cloud Storage Company

Cloud Storage CompanyYesterday, I wrote a post about the some new cloud hosting companies that will take your data, disperse it, and make sure that it's safe and secure forever. But, what if forever turns into a year or less? What happens when a Cloud Storage company like Cleversafe or Symform goes under? Where does your data go?

Cloud Storage Company: Past Examples

Remember Megaupload? When the US Department of Justice shut down Megaupload, tons of data was lost. Millions of files were wiped out when LeaseWeb deleted Megaupload data. All of that data was wiped out without any kind of warning. Millions of users were left disappointed and upset, but once data is gone…it's gone.

If we can learn anything from a Cloud Storage company like Megaupload, it's that your data is never truly secure when stored elsewhere. Granted, most cloud hosting companies won't come under some kind of criminal fire, but a startup cloud company can go bust tomorrow. Hopefully, your data will be taken care of properly if this happens, but that's a big risk to take.

Cloud Storage Company: What to Do Instead

You should have some kind of physical copy of your data. This way, you can always revert to that backup if your data is compromised. Amazingly, most companies that use some kind of Cloud Storage company never store data elsewhere, completely trusting that company to keep data safe. This is a big mistake.

Just in case you do decide to store data with a cloud-based company, what can you do if that company goes under tomorrow? First, find out what has happened to your information. Has it been erased completely? If your data has been erased, there's nothing you can do to get it back. But, you can sue the company that wen under – if you did not sign some kind of contract that prevents you from suing.

Cloud Storage Company: Cloud Contracts

Any company that's going to go through the expense and trouble of storing data with a Cloud Storage company site like Cleversafe or Symform is securing highly sensitive information. If you're going to go to all these lengths to store your vital data, do make sure that you have a tightly sealed contract. Otherwise, it just doesn't make sense, and you may as well not bother storing that data at all.

Cloud companies have their own contracts that you will have to click through or sign in order to use a service, but that might not be good enough. It's recommended that you draw up your own company contracts or make sure that every single term in a cloud contract is to your liking. Otherwise, your data may be vaporized if the cloud you're using disappears, and you might not be able to do anything about it.

Cloud Storage Company: Know Where Your Data Is Stored

Things get really tricky with a company like Megaupload. Users of this service had to know that dooms day was coming, but some were completely unaware. Be sure that the storage service you use is legit, isn't in the line of federal fire, isn't violating any major laws, and has a backup plan in place in case the business folds. When it comes to cloud storage, you can never be too safe.

Image courtesy of Woodleywonderworks via Flickr Creative Commons

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