I migrated a customer to Office 365 this week and transferred the domain name to Metaname, then after setting up the Office 365 account went to configure the A record to point back to the website and discovered that the website was not responding. After a query to Telecom I was informed that the hosting account was cancelled when the domain was transferred. This is a customer I only do occasional casual work for, so of course there is no backup of the website.
I've migrated plenty of customers to Office 365 and most of them have had websites with various hosts, I've never had an issue leaving the website where it is 'till now.
I think this it pretty poor form, as when the customer called to ask for the UDAI to be e-mailed, the CSR made no mention of the fact that the hosing account would be cancelled, nor was their any mention of this in the subsequent e-mail. It may be buried in the T & C's but the website has been running for 3 years so it's not likely that any of the staff would remember what was in them, even if they were aware of the fact.
You would think that at least a warning could be included in the UDAI e-mail that a consequence of transferring the domain would be cancellation of the web hosting account.
I've been quite supportive of Telecom in the last few years as they seem to have got their act together and provide good service, but this harks back to the bad old days when they didn't give a flying fark about customer satisfaction.
I think that cancelling a customers web hosting account without notice is just not on!