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.

Facebook Beta Launches Work Chat Application

Late last week, Facebook quietly made its entry into the work chat (enterprise real-time messaging) arena with the very limited release of its appropriately-named Work Chat application. There was no announcement in the Facebook Newsroom; the app just showed up in the Google Play store and was called out in a TechCrunch article. Work Chat is available for Android devices only now; an iOS version is in development and expected to be available soon.
Work Chat is the corporate equivalent of Facebook Messenger. Those applications appear to have the same user experience and feature set, although TechCrunch noted that Work Chat allows individuals to temporarily turn off their notifications, so as to not be disturbed when on vacation and when other personal activities are prioritized.
Work Chat is intended solely for organizations that are Facebook at Work customers. Anyone can download and install the app, but it will not work without a Facebook at Work login.
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Facebook at Work is still in closed beta, so very few companies and individuals will be able to use Work Chat today.

Is This a Market Disruptor?

While it’s impossible to gauge the actual market impact of Facebook’s Work Chat at this point, we can draw some conclusions about its potential effect. First, it will boost awareness of, and interest in, chat-based, real-time communication tools in organizations of all size. Individuals who use Facebook and its Messenger app in the personal lives will push their IT departments to consider the Facebook at Work and Work Chat combination.
In all likelihood, many organizations will try Work Chat, at least in a pilot implementation. It’s been reported that Facebook at Work will be available in a free version that will likely have a limited feature set and support. If that is true and the same applies to Work Chat, then a company’s cost to try the app is negligible.
Facebook’s land and expand strategy for enterprise sales may indeed work and, if it does, Work Chat would likely be swept along with the tide of Facebook at Work adoption. Facebook has already said that some of the roughly 300 companies in the Facebook at Work trial program have announced their intent to scale its use next year. Heineken has already grown its user base from 40 to 550. Royal Bank of Scotland plans to have 30,000 employees on the platform by the end of Q1 2016 and aims to roll it out to all 100,000 employees before the end of the year.
It is entirely possible that Work Chat will see those kind of adoption numbers as well, resulting in a decent share of the enterprise real-time chat market segment for Facebook. Other vendors of communication and collaboration platforms, suites, and applications should not dismiss the potential impact that Facebook at Work and Work Chat could have on their revenue streams. If Facebook can build an enterprise sales capacity and execute well, they will become a formidable competitor.

Snapchat hiring journalists to become its own publisher

Not content to rely on major brands for its new media exploration section, Snapchat is also planning on making its own according to a new report by Digiday.

The company will produce high quality video, images, and text for people to view in the Discover tab. Theoretically, it will provide more content for Snapchat’s advertiser partnerships. Furthermore, it will help the company establish itself as a place to consume content, so it doesn’t just have to rely on its partners creating media specifically for Snapchat. As previously reported, the company is working with CNN, Vice, Buzzfeed, and a whole host of others to help them tailor content for its upcoming Discover section.

The company has been snapping up journalists for the endeavor, which explains why long time social reporter Ellis Hamburger left The Verge for Snapchat in November. According to their LinkedIn profiles, blogger Nicole James, videographer Matt Krautstrunk, Dom Smith, and CJ Smith, former MTV producer Greg Wacks, and even animator Kyle Goodrich will be joining him.

I’m curious to see what they create. Snapchat’s disappearing, finger holding format doesn’t naturally lend itself to media consumption. These people will have to get creative if they want Snapchat to become a second screen.

The recent leaked news of a soured Snapchat deal with Vevo, to create its own record label, also makes more sense now. It suggests that the company will look towards creating its own entertainment content in addition to — perhaps — journalistic. Music videos and comedy sketches are likely to be a better fit for the younger crowd then CNN reports.

Snapchat isn’t the only tech company pursuing a platisher (publisher meets platform) approach. Medium has faced criticism for its similar approach, and as Digiday pointed out Tumblr’s former platisher efforts failed spectacularly in 2013.

The world is looking rosy for Facebook as its stock hits a record high

During Facebook’s earnings call yesterday it seemed like things couldn’t get any better for the company, with both revenue and engagement growing rapidly. But this morning, the company one upped itself again, hitting the highest stock price on record since going public.

Apple Moves to Number Two As Worldwide Smartphone Market Grows

Apple moved into second place in worldwide smartphone shipments during the first quarter of 2011, according to market research firm IDC. Apple is led only by Nokia, and is followed by Research In Motion, Samsung and HTC, to round out the top five.

Apple Loses Ground to Android, but the App Store Still Dominates

New information from comScore shows Android extending its lead over Apple’s iPhone during the three month period ending in December 2010. Google’s mobile OS is now within close striking distance of Research In Motion (RIM), the U.S. smartphone market leader.

Apple Passes RIM in Global Smartphone Share

Despite Steve Job’s obvious distaste for the company, RIM has long remained ahead of Apple in the global smartphone market. Not any longer, according to research firm Strategy Analytics, which yesterday reported the iPhone shipped more units than did BlackBerry during 2010’s third quarter.

Apple Stock Climbs Above $300

Apple’s stock price reached a lofty milestone in pre-market trading early this morning, crossing the $300 mark for the first time in company history. It reached as high as $301.50, and remains above $300 after opening bell today. Analysts predict it will go higher still.

Apple Still Boasts Lion’s Share of Smartphone Advertising

Google (s goog) bought AdMob, and Android has been catching on with consumers like a brush fire on a dry midsummer day, but Apple (s aapl) is still holding the reins as far as smarphone advertising goes, according to new data released by Millenial Media.