I just got off the phone with the former owner of EAAHosting.com. He has one of those cautionary tales that was really tough. It just dawned on me that I completely forgot to ask his name.

According to his story, EAA Hosting started out small and gained a lot of customers fast. Soon, they were able to get better pricing from the larger server wholesalers, but they kept their CRM on one of the smaller server companies.

Some time last year, fatnetworks.com took down the server which housed their CRM and all their customer contact information. While most of their customers were located on other servers form other more stable providers, they went out of business because they lost all their customer information.

Apparently they could not get fatnetworks to get the server back up and couldn’t get them to recover their lost data.

So, we can learn something form their mistake. Do not use a Customer Relations Manager program which does not come with some type of off-line or remote backup. Do not rely on CP or H-Sphere to manage all your customers unless you can back up the database they use.

Personally, I would never have thought to take this step.