![]() Data Impounded–Can Our Business Recover? In 2012, Megaupload was hit with a government lawfare outage that killed Kyle Goodwin’s business, among others. On January 19, the U.S. government flipped the off switch. Domains seized. Money frozen. Executives arrested in New Zealand. People retell this as the feds raiding a shared cage and inadvertently deleting the neighbor’s payroll. Not exactly. Megaupload owned the equipment: about 1,100 servers and 25 petabytes at Carpathia in Virginia, plus datacenters in Europe. Federal agents copied what they wanted and left. Then the government froze Mega’s bank accounts. Servers holding critical data for many small businesses might as well have been struck by lightning. Vendors stopped getting paid. No one could access the servers, including innocent clients. Kyle Goodwin filmed high-school sports in Ohio and used Megaupload to store, move, and back up giant video files. His local disk had died days before the raid, so his backup was now the original. The Department of Justice did not pause to ask whether a file was the Ashtabula girls’ soccer video or a studio movie. They didn’t care. After they took what they wanted, the message was: we’re done; data owners can delete—and, by the way, you clicked terms saying you own nothing. In the cloud, you can lose everything without a goodbye letter. The datacenter couldn’t open Kyle’s account. His lawyers spent years asking a judge for retrieval. There was none. Court is not a restore tool. Court is a calendar. Shared cloud means your uptime is married to the platform operator—their indictment, their frozen wire, their invoice, their country. Dedicated servers did not save Mega’s users. Mega owned the metal and the namespace. When it got stormy, end users had no storm shelter. If you host proprietary information in the cloud, design as if the other tenants are fugitives. Don’t keep proprietary data in one vendor’s control. Keep local backups you can restore under your control. Sequester contracts and billing so one seizure doesn’t take your A/R and A/P. Know which country the disks live in and who owns them. If your plan is “I’ll get a lawyer and file a motion,” you have a hobby, not a recovery plan. Your CFO should ask your CIO: If our hosted platform vanished tomorrow because someone else got raided, could you rebuild it in 24 to 72 hours on gear we control? If the answer is not “yes”, you need on-premises infrastructure. Don’t procrastinate. Call Zerowait. |
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