WeTransfer Moves Toward File Transfer as a Microservice

It shouldn’t be news that enterprise file storage, sync, and sharing software and services (EFSS) have largely become a commodity. Prices continue to fall, in part because providers’ storage costs are still decreasing. More importantly, their cost to actually transfer a file has always been negligible, even with the application of strong encryption.
With costs low and decreasing, it’s fair to ask which of the aspects of file storage, sync, and sharing creates enough value for customers that providers can charge for the service. When you stop and think about it, the sharing or transfer of the file has always been the action that the rest of the bundled offer hangs on, especially for cloud-based services. A file can’t be stored on a provider’s servers until a copy has been transferred there. Similarly, changes to files must be transferred to keep copies in sync. The vast majority of the value proposition clearly lies in the transfer (sharing) of the file.
So it makes sense for the file transfer element to be the focal point for providers’ monetization strategies. If you accept that premise, then the next logical conclusion to be made is that file transfer can be monetized as a stand-alone service. In today’s world, that service would be built and licensed as a microservice, which can be used in any application that can call a RESTful API.
WeTransfer, a company based in Amsterdam (despite claiming San Francisco as its headquarters), has announced today the first step toward the creation of such a commercially-available file transfer microservice. A new partnership makes WeTransfer’s file transfer service an option (alongside Dropbox) for delivering photos and videos purchased from Getty Image’s iStock library. WeTransfer works in the background while the customer remains in iStock.
WeTransfer has exposed its file transfer API to Getty Images only at this point, but will be able strike up similar partnerships with other providers of graphics services. Of course, WeTransfer could also license API access to any developer looking to incorporate file transfer into an application. While it isn’t clear from their statement today if and when that will happen, the possibility is very real and quite compelling.
It’s important to note that both Box and Dropbox have made their file sharing APIs commercially available to developers for several months now, so WeTransfer is playing catch up in this regard. However, WeTransfer has emphasized file sharing almost exclusively since its founding in 2009 as a web-based service that only stores a file being shared for seven days before deleting it from their servers. Dropbox, on the other hand, originally was popular because of its simple-but-effective sync feature, and Box was initially perceived as a cloud-based storage service.
The potential market for file transfer microservices is so young and large that no provider has a clear advantage at this point. The recent nullification of the Safe Harbor agreement (PDF) between the European Union and the United States also presents a significant challenge to file services vendors that provide file storage for a global and multinational customer base. If WeTransfer emphasizes its legacy as an easy-to-use, dependable file transfer-only service with its newly-created microservice, it could gain a larger share of the market and expand well beyond its current niche of creative professional customers.

Hightail to a Defensible Niche

It’s hardly news that enterprise file sharing technology has become commoditized. That process has very visibly played out in the tech media over several months now. However, most of the articles written have assumed that pure play file sharing startups have a bleak future, if any, as Microsoft, Google, Citrix and other platform vendors continue to commoditize both functionality and pricing.
Reality begs to differ. Box has convincingly moved beyond commodity file sharing by offering ready-made, industry-specific solutions and a developer platform chock full of APIs for organizations that prefer to build their own applications using Box technology. Accellion and Egnyte have focused on the sharing of content in hybrid environments that combine cloud-based and on-premises file storage.

Hightail Makes Its Move

Hightail is another enterprise file sharing pure play that was supposed to be put out of business as a result of market consolidation. It too is still standing and has just announced a new offering, called Spaces, that essentially repositions the company from commodity file sharing to content-based collaboration for creative professionals.
Spaces is an attempt by Hightail to help people who work at ad agencies, film and music studios, and in Marketing departments to not only share, but also to give and get feedback on audio and visual files. Collaborators can make annotations directly on visual files and comment in-context of one of its elements. Comments on audio and video files are also made in context, as they appear in the track’s timeline.

Spaces is really a project management tool for creatives, albeit one with only lightweight task management functionality. Individuals can establish a collaborative space in which the creative artifacts related to a specific project are shared, annotated and commented on, and distributed in final form. There is also a dashboard that lets the owner/administrator of the space monitor activities taken by it members on its assets, including comments made and downloads of files.

Darwin’s Theories at Work

Hightail is a clear example of Charles Darwin’s theories of evolution and specialization at work. From its inception (as YouSendIt, in 2004) the company has evolved from a provider of technology for sharing large digital files to one that also stored those files in the cloud. Now Hightail is specializing to ensure its continuing existing. Its CEO, Ranjith Kumaran, recently acknowledged that roughly 80% of the company’s revenue comes from creative agencies and firms, so focusing the company to serve those customers was a logical move.
Hightail is certainly not the first company to start as a purveyor of a general technology and then specialize to survive. It’s not even the first in the context-centric collaboration space. As noted above, Box has also created industry-specific solutions. The real question is whether or not this pivot will provide Hightail with a niche that is large enough for the company to not only sustain its current level of operations, but to grow as well.

We’ve Seen This Movie Before

Central Desktop may well serve as a historical example of Hightail’s future.  In 2011, Central Desktop launched SocialBridge, a new offering that repositioned the company from the generic social collaboration space to the same niche that Hightail has selected – creative and marketing agencies. While Central Desktop saw some success and growth as a result, it sold itself three and a half years later to PGi, who wanted to augment its existing solution for real-time meetings into a more holistic collaboration offering.
Hightail’s evolution may take a similar path. Adobe could combine assets from its Creative Cloud and Document Cloud offerings to create something similar to Hightail Spaces, but Adobe could also choose to buy Hightail. One of Adobe’s traditional foes, such as Corel or Quark, could acquire Hightail in an effort to better compete Adobe. It’s even possible that Apple could want to buy Hightail to augment its existing offerings for creative professionals.
Whatever happens to Hightail down the road, they’ve made a move this week that they needed to do to stick around a while longer as an independent company. They’ve also demonstrated that generic file sharing has become completely commoditized and that evolutionary specialization will be required of all the other pure play enterprise file sharing vendors if they want to continue in business.

Make your own filters on this Instagram for photo pros

EyeEm, which is like an Instagram for professional photographers, is now attempting to woo Average Joes to the application. With a new update, EyeEm has added a wide range of such tools, like exposure, contrast, and brightness (but not color). Instead of sticking with preset filters, you can make your own.

An animation showing the new EyeEm editing tools.

An animation showing the new EyeEm editing tools.

It brings a few professional-level editing tools to the masses by simplifying them for mobile use. It’s the kind of application that’s unlikely to ever explode with consumers — Instagram beat it to the mainstream — but with 10 million registered users it’s a crowd pleaser for those looking for a little more mobile photo editing control.

With the edit tool update, the company also introduced a feature called “Open Edit,” where you can inspect a posted photo to see what editing options the person used on it. That way you can copy someone’s editing choices (i.e. filter) as a bundle and apply it to any of your photos.

EyeEm's new Open Edit tool

EyeEm’s new Open Edit tool

EyeEm is essentially trying to professionalize mobile photography and mobile photo editing. It makes money through partnerships with companies like Getty, which buys stock images from EyeEm photographers who then share the returns with the photo app. “We use technology to make sure we’re capturing the highest resolution pictures the mobile camera allows,” Markus Spiering, Chief Product Officer (and former head of product at Flickr), told me.

Thunderbolt-equipped LaCie desktop drives hit the Apple Store

Slowly but surely, Thunderbolt accessories for Apple’s Mac computers are making their way to retail. On Tuesday Apple began selling the LaCie Little Big Disk in both 1 TB and 2 TB capacities with Thunderbolt connectivity. The drives retail for $399.95 and $499.95, respectively.

Apple continues to blur the line between pro and consumer

Final Cut Pro X represents a huge cost savings over its predecessor. But this definitely isn’t the first time Apple has professional caliber tools available at prices within reach of some consumer budgets, and it probably won’t be the last.

Hashable: What LinkedIn Would Look Like If It Was Built Now

Hashable has a fun interface but is all business under the hood, according to founder and CEO Mike Yavonditte. With its ability to track and index your professional relationships and connections in real time, with social awareness and even geo-tagging, it is everything that LinkedIn isn’t.

Pro vs. Consumer: How iLife ’11 Blurs the Lines

As a musician, I’ll never forget seeing Logic for the first time and thinking, “Here we go baby!” Back then, GarageBand paled in comparison, so any semi-pro audio-technician would only use it for quick work. But iLife ’11 is blurring the line between the two programs.

Professionalism and Social Media

The posts on an organization’s social media accounts reflect on it in a very public way. People’s impressions of the company can be positive or negative depending on whether the people posting to those accounts represent the company in a professional and consistent manner.

Can You Be Personal and Professional in Social Media?

There have been plenty of blog posts and discussions recently about how you need to be “personal” across the various social media web sites, even when communicating on behalf of your company or brand. Social media is about conversations, and people have conversations with other people, not faceless corporations. So you want to come across as a person talking with people, not at them, unlike the traditional one-way marketing broadcasts of yesteryear.

In this post, I am going to focus specifically on how to balance the personal with the professional, but you should also read Aliza’s post about revisiting her 10 golden rules of social media for more best practices. Read More about Can You Be Personal and Professional in Social Media?