Media Firm Demands USD1.6 Million From Tencent Over Cloud Data Loss

Media Firm Demands USD1.6 Million From Tencent Over Cloud Data Loss

Duan Qianqian & Lai Shasha

Date: Tue, 08/07/2018 - 14:53 / source:Yicai
Media Firm Demands USD1.6 Million From Tencent Over Cloud Data Loss
Media Firm Demands USD1.6 Million From Tencent Over Cloud Data Loss

(Yicai Global) August 7 -- Tencent Cloud, China’s second-biggest player in the digital storage sector, has found itself in hot water after failing to restore lost data for a client on its platform.

Beijing-based Cutting-Edge CNC Technology New Media, a customer of Tencent Cloud for eight months, took to WeChat to complain about an unrecoverable data loss on August 5. While Tencent was quick to acknowledge the accident, the two parties are far apart on a suitable level of compensation.

Shenzhen-based Tencent Cloud proposed a refund of the CNY3,600 (USD520) service charge as well as additional compensation of CNY133,000 (USD19,400) in cash or cloud resources for the media client, which covers the machine tools sector. In response, CNC Technology asked for CNY11 million (USD1.6 million), a claim which Tencent called “unacceptable.”

Qingbo Numerical Control Technology, which operates the CNC Technology outlet, confirmed on July 20 that Tencent Cloud had organized technical experts to help recover the lost data but was ultimately unsuccessful in its efforts.

Tencent Cloud admitted in an announcement on August 6 that a hard drive error was to blame for the loss.

Many industry insiders pointed out that the tech giant failed to synchronize its data with a local computer, leading to the irreversible loss. “It is necessary to back up some important data on a local computer,” one startup founder told Yicai Global.

After the data loss was identified, the parties disagreed over the compensation plan. Tencent responded to CNC Technology’s CNY11 million claim stating that the amount was far more than the company could offer.

Tencent Cloud also said that in the course of the communication between the two sides, CNC Technology raised the possibility of receiving compensation in the form of investment in the company, though the cloud operator is not expected to meet such demands.

Editor: William Clegg

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Keywords: TENCENT, cloud service, Data Recovery Failed, Compensation Dispute