Outsource your IT infrastructure as much as possible (e.g. AWS, AppEngine, etc.)
This is where most of the attention has been focused, and I have no doubt Larry is suck of hearing what he should have done to have avoided this from ever happening. Let's assume this will happen again and again with online services, just as is it has happened with behind-the-firewall services or local services in times past. Chris Messina (@factoryjoe) and Larry hit the nail on the head in pointing to transparency and trust as the only long term solution to keep your service alive in spite of unexpected downtime issues (skip to the 18:25 mark):
For those that aren't interested in watching 12 minutes of video, here are the main points:
Disclose what your infrastructure is and let users decide if they trust it
Provide insight into your backup system
Create a personal relationship with your users where possible
Don't wait for your service to have to go through this experience, learn from events like this
There's no question that this kind of event is a disaster and could very easily mean the end of Ma.gnolia. I'm not arguing that simply blogging about your weekly crashes and yearly data loss is going to save your business. The point is that everything fails, and black swan events will happen. What matters most is not aiming for 100% uptime but aiming for 100% trust between your service and your customers.
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