University asks Microsoft not to erase its cloud data

hqdefault (1)A bankrupt US trade school, the ITT Technical Institutes, is asking a court to stop Microsoft from erasing its cloud data.

The move is being seen as a true 21st century problem and one which could effect channel partners who sell cloudy products.

In a filing to the US District Bankruptcy Court of Southern Indiana, the for-profit university seek an order to bar Vole from wiping the contents of ITT’s Office 365 and webmail accounts for students, faculty, and administrators.

ITT has been under bankruptcy proceedings since September of last year, when it shut down operations and filed for bankruptcy protections.

There had been years of government probes over its ability to stay afloat, and education authorities worried aid money would be lost when ITT went under for good.

A group of trustees has overseen wrapping up ITT’s affairs and settling its outstanding debts. Among those are the bills the school owes on its Office 365 subscription with Microsoft. ITT owes $177,466.46 on an agreement that runs until May 31.

The university wants Microsoft to preserve its data, but was told such a service would cost around $2.5 million.

“The Trustee seeks a preliminary and permanent injunction prohibiting the Defendants from taking any actions that could result in the destruction, deletion, overwriting, or erasing of any of the Electronic Data or taking any other action or inaction that could affect the preservation of the Electronic Data, until such time the Trustee can determine the most cost effective method of accomplishing turnover of the Electronic Data,” the filing reads.

“Any threat of destruction, deletion, overwriting, or erasing of any of the Electronic Data or any other action or inaction that could affect the preservation of the Electronic Data jeopardizes the Trustee’s efforts to marshal, assess, and preserve estate assets, and to otherwise fulfil her duties under section 704 of the Bankruptcy Code.”