AWS Acquires Wickr: Expanding Secure Messaging Capabilities

Amazon Web Services Acquires Secure Messaging App Wickr

Amazon’s cloud computing division, Amazon Web Services (AWS), has expanded into the realm of encrypted messaging through the acquisition of Wickr. Wickr is a secure communications service specializing in providing solutions for government, military, and enterprise clients.

Wickr’s Security Credentials

Wickr distinguishes itself by claiming to be the sole “collaboration service” that satisfies the stringent security standards established by the National Security Agency (NSA). This focus on high-level security is a key aspect of its appeal.

Continued Operation and Availability

According to a blog post from Stephen Schmidt, AWS VP and CISO, AWS intends to maintain Wickr’s current operations and make its services accessible to AWS customers “effective immediately.”

Financial Details of the Acquisition

The financial specifics of the deal were not publicly disclosed. However, data from PitchBook indicates that Wickr had previously secured approximately $60 million in funding, with earlier valuations estimated below $30 million.

AWS’s Financial Performance

AWS continues to be a significant driver of growth for Amazon. Last quarter, AWS reported revenues of $13.5 billion, representing a 32% increase year-over-year, and generated a net income of $8.1 billion.

Context of the Acquisition

Amazon’s acquisition of a messaging platform focused on secure government services occurs amidst ongoing legal challenges related to the JEDI contract. This $10 billion contract, initially awarded to Microsoft during the Trump administration, remains a point of contention.

Strategic Implications for Amazon

It remains uncertain whether this purchase is part of a broader strategy to develop more comprehensive infrastructure and services, or simply a move to strengthen its position in the government market, regardless of the JEDI outcome.

Potential Expansion into the Messaging Space

The acquisition also signals a potential increased focus from Amazon on the messaging sector, a move that some analysts have anticipated for some time.

Existing AWS Communications Services

Currently, AWS offers Chime, a communications service for meetings, chats, and business calls. However, Chime has not achieved the same level of prominence as competitors like Slack or Microsoft Teams, and lacks Wickr’s emphasis on end-to-end encryption.

Amazon’s Past Messaging Efforts

Reports suggest that Amazon explored the development of a consumer-focused messaging product as early as 2017. The company also holds a portfolio of social media-related patents.

Evolving Messaging Landscape

The messaging landscape has evolved considerably since 2017, with increased emphasis on encryption and privacy-enhancing features. Messaging applications have also become more sophisticated overall.

Potential Applications for Wickr

Amazon may leverage Wickr in several ways:

• Offering Wickr as a standalone business service.
• Providing “messaging-as-a-service” for integration into other applications.
• Developing a consumer messaging app based on Wickr’s infrastructure.
• Integrating features with the Echo ecosystem for social commerce and interactive experiences.

Statement from AWS CISO

Stephen Schmidt, AWS CISO, commented on the acquisition, stating that the demand for secure communications is increasing, particularly with the rise of hybrid work environments. He highlighted Wickr’s ability to help organizations adapt to these changes.

Wickr’s Perspective on the Acquisition

Wickr expressed its enthusiasm for the acquisition, stating its intention to collaborate with AWS to enhance its solutions for customers and partners.

Wickr’s Technology and Features

Founded in 2011 and headquartered in San Francisco, Wickr positions itself as the “most secure” video conferencing and collaboration platform.

End-to-End Encryption

Unlike many collaboration tools that encrypt messages in transit but store them unencrypted, Wickr utilizes end-to-end encryption. This ensures that only the sender and recipient can decrypt and read messages.

Ephemeral Messaging

Wickr also offers ephemeral messaging, allowing users to set self-destruct timers for messages, ranging from a few seconds to a specified duration.

Expansion into the Enterprise Market

Recently, Wickr has focused on expanding its presence in the enterprise market, driven by the increased need for secure online communications. In February, the company launched ‘Global Federation’, enabling secure communication with external partners.