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Massive data loss incident in a hosting service provider

Here is another report on an incident in Japan.
First Server is one of the major hosting providers of rental servers in Japan.
On June 20th, when one of their engineers tried to apply a security fix to their customer's OS environment,
he/she mistakenly erased more than five thousand disk images of their customers,
as well as the corresponding backup disk images.
After three days of recovery work they given up recovering all of them.

Tragically the compensation will be at most the total price which the customer has been paid for the service, the spokesman of the company explained.
This incident seems to be an alarm bell on the service management depending on the hosting service of third-parties.

You can make a contract with them, but they do what they can do at most.

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