Australian Web Host Crazy Domains Irretrievably Loses Customer Data, Offering $100 Credit to Affected Accounts

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Australian mass market hosting provider Crazy Domains is giving customers whose data it irretrievably lost during a recent outage a $100 credit. The amount is a drop in the bucket for customers who rely on their websites and email to run a business and incurred significant expenses during the event two weeks ago.

According to a report by SmartCompany, only 18 out of a possible 10,000 customers using a particular shared server were affected. In an email to customers, Crazy Domains blamed the lost data on an “unforeseen incident in a storage upgrade.”

The issue began on May 8, but the company didn’t start customer outreach until sending the email on May 15. A spokesperson for Crazy Domains told SmartCompany that while its customer service department operates 24/7/365 it’s possible they did not respond to affected customers right away or may not have noticed the problem immediately.

The company tried to recover the data, but maintains that data backup is the responsibility of the customer with hosting services. While this may be true, and is likely something in the fine print of the user agreement, it may not be something the less technically savvy customer would be aware of. Crazy Domains’ hosting services are priced very low, so the majority of its customers are likely those with personal sites or small business sites who wouldn’t necessarily know that data backup isn’t included with their hosting package.

If not included in a hosting package, data backup is a good value-add for hosting providers to offer customers. Pointing to this incident could be a selling point for these services by other web hosts in the future.

Crazy Domains’ fumble could benefit other service providers in the Australian market, such as cloud services provider UltraServe, who recently received an infusion of capital via an acquisition by Internet entrepreneur Simon Hackett.

Last year, Crazy Domains was acquired by a Dubai-based company called Dreamscape Networks.

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