One of the features of Web 2.0 is the fact that multiple applications from multiple providers may be combined into one end-user application. That’s generally considered to be a good thing. Sometimes, it’s not.
Ning is a company that provides hosted social media tolls for communities. It’s considered to be a low-cost tool with good - if generic - functionality, and has been one of the success stories in the social media space. Lots of small businesses and nonprofits use Ning, and it’s growth in the last few years has been explosive.
In the product suite we’ll talk about for our clients, it’s been just at the bottom edge, but it’s been on the list.
In response to the perception that the features are somewhat generic, several smaller companies have sprung up that offer additional features to Ning via customer widgets. The leading company in that space is a small company called Widget Laboratory.
Now I don’t have enough information to know what happened or who’s at fault, but the relationship between Ning and Widget Works collapsed, and last week - Ning turned off the functionality of all the Widget Laboratory plugins.
Here’s Techcrunch:
Ning, the build-your-own social network platform, has removed all widgets created by popular premium developer WidgetLaboratory. The news has come without warning and is being met with outrage by a number of users who have spent hundreds of dollars on the widgets to build up their social networks. WidgetLaboratory sells its widgets for around $30 a month, and has managed to become the most popular widget creator on Ning’s platform.
So the first lesson is to be alert to the fact that depending on multivendor solutions isn’t risk-free.
It’s a significant risk in hosted applications, because the vendor manages the live app, not just the codebase (i.e. if you host the vendor’s code, you can determine - in the short term - whether to upgrade your live code).
There’s another lesson, too, which is to see how these events play out in the Web 2.0 world - a world where transparency is considered to be the highest value.
Here’s what Widget Labs had to say (on their new site - their old website was a Ning social network which is no longer accessible):
As promised, here is a complete record of correspondence from August 2nd, 2008 through August 22nd, 2008 between WidgetLaboratory and Ning.
…followed by a list of correspondence.
Ning hasn’t been silent on the issue, but has been much more restrained and corporate in its public face.
…and is losing the PR war.
I can’t comment - at all - on the merits of either side’s arguments, and this post should in no way be interpreted as taking sides one way or the other. I flatly don’t have enough information to have an opinion.
But for those of us playing in the social media/Web 2.0 world - and for companies that will be doing business there - it’s important to remember that the neat things we engineer using multiple vendors, cloud hosted services, and mashed up data - well, those things need to analyzed carefully in terms of risk before you make your company’s communications dependent on them.
And most of all it’s a lesson that in the Web 2.0 market - transparency pays off.