How Did Danger Not Backup Its Servers? How Did Microsoft Allow Such A Failure?

from the one-of-those-times-where-epic-fail-applies dept

I bought the very first Danger smartphone the day it came out (rare for me -- I'm not so much of an early adopter on mobile phones). One of the features I liked the best was the fact that all of the data on the phone was immediately and automatically backed up to Danger's servers. Since then, I've always been amazed that other providers didn't make similar features standard. Danger never fully lived up to its hype, and eventually sold out to Microsoft. It was never entirely clear why Microsoft would want Danger, but at the very least you would think that it would make sure that the servers were pretty safe and redundant. Or so you would think. Apparently Danger had a massive server failure and is warning people that their data may be completely lost. The company is telling people not to turn off their devices, as the only way to keep the data alive is to keep the phone going.

It's difficult to think of a system failure that makes a company look quite this bad. Tons of people have Sidekick phones and rely on server backup to keep their data. Not having a working redundant backup is a stunning sort of failure for Microsoft, and should remind people of the inherent dangers in relying on a cloud based service. While there are lots of cloud-based solutions that are quite useful, people are definitely going to need to be able to have alternative local and remote backups to make sure that, in this kind of situation, they're not totally relying on a company who should do things right, but perhaps did not.

Filed Under: backup, cloud computing, danger, server side, sidekicks
Companies: danger, microsoft

Microsoft Buys Another Desperate Company: Danger Goes To Redmond

from the danger,-danger,-bill-gates dept

It would appear that Microsoft's M&A team isn't solely focused on Yahoo these days. Back in December, we noted that Danger, makers of the Sidekick mobile phone device, was planning to IPO, despite not having a track record worth an IPO. As we noted at the time, it seemed like the company was going to IPO because that was its only option. The truth is probably that the company was desperately looking for a buyout, and now Microsoft has come through. It will be worth watching to see what Microsoft does with Danger, as Danger does not use Microsoft's operating system, and its model is not based on licensing software, but in taking a toll from service fees. It would take quite a bit of effort to pull out Danger's OS, which was very carefully designed for the device itself, and replace it with Windows Mobile (and it also might lead Sidekick fans to flee to other devices). All in all, it's an odd sort of acquisition for Microsoft. One would hope that the company actually has more specific plans on what to do with Danger, because the obvious fit isn't apparent. From Danger's perspective, though, an acquisition by anyone at this point has to be viewed as a better option than trying to IPO, which almost definitely would have been a disaster.

Filed Under: desperation, mergers
Companies: danger, microsoft

Dangerous Reasons To IPO

from the desperation,-not-growth dept

There's been some indication that the IPO market is beginning to open up again, what with profitless firms like NetSuite having successful offerings. At about the same time that was happening, Danger filed to go public as well, but perhaps for all the wrong reasons. Like NetSuite, Danger is losing money. However, the story of Danger is an instructive one, and it's surprising that the firm is trying to go public. Reading between the lines, it feels like Danger is trying to go public more as a desperation play to stay in business, rather than as part of a plan for strategic growth.

Danger, of course, launched its HipTop/Sidekick device way back in 2002 to much fanfare. I bought one the first day it was available, and used it for more than three years. It really was one of the first useful mobile devices for being able to do things like web surfing. However, while the company did an amazing job in designing the device, it made a series of strategic mistakes that have since limited the company's business chances. First, it took an early investment from T-Mobile. Initially, this might sound like a good idea for a device maker looking to have its device offered by a mobile operator -- and, indeed, T-Mobile offers the Sidekick. The problem was that almost no one else wanted to go near it, as they didn't want to help out a rival operator's investment. Danger picked up a few smaller operators, but never could get the device out to a large enough audience.

The second big mistake was in closing off the device. Early on, it didn't even have a developer kit for developers. Once it did, many developers had already moved on to other things. On top of that, Danger/T-Mobile still controlled which apps were available. You couldn't go around Danger/T-Mobile to load whatever app you wanted. That also turned off developers who knew they couldn't just write an app and push for viral adoption. They had to go through the gatekeeper. It certainly made the device a lot less useful. Whereas for other popular platforms there were tons of apps available, Danger had a very limited supply.

While the company built up a modest following, in part by getting famous young celebrities to carry the device (which backfired a bit when Paris Hilton's got hacked), many other devices eclipsed Danger's devices and the company has done little to push its way back into the discussion. It basically just bet on having a really cool design and continually making minor updates to that design. That was strong enough to keep the company afloat, but it's still losing money, not growing very fast, and still incredibly reliant on T-Mobile for a huge chunk of its business. It's certainly not a particularly compelling IPO story -- and it feels like an IPO out of desperation for new capital, rather than an IPO of a company that is growing and has strategic plans in place for the use of a capital influx. Perhaps the folks at Danger saw an opening in a market that's warming up to IPOs, but it wouldn't be surprising at all to later hear that the company ends up pulling the IPO.

Filed Under: ipos, mobile
Companies: danger, t-mobile