Here’s an email that Office 365 users in Australia recently received in conjunction with the outage that was experienced in April.
Nothing is perfect and Office 365 is still in its infancy but I for one am heartened to see that the right thing has been done and customers affected have been duly compensated (as Microsoft provides a financial guarantee on its service level agreement). It would have been nice for this to have come out earlier but hopefully it will not need to again.