Move over yahoo, google, hotmail; Facebook Messages is here

Since the heyday of Africa Online, America Online and Hotmail’s cheery “You’ve got mail” greeting, e-mail has been central to the online experience for millions of people.
But Mark Zuckerberg, the chief executive of Facebook, says e-mail is showing its age. In his view, e-mail is too slow, too formal and too cumbersome, especially for young people who have grown up using text messages and online chats.

Zuckerberg has introduced a new unified messaging system for Facebook that allows people to communicate with one another on the Web and on mobile phones regardless of whether they are using e-mail, text messages or online chat services.

“We don’t think a modern messaging system is going to be e-mail,” he said.
The new service, Facebook Messages, is a bold move by Facebook to expand from a social network into a full-fledged communications system.

It could help the company chip away even more at Internet portals like Google, Yahoo, MSN and AOL, which have used e-mail as one of their main draws with consumers.

Americans already spend more time on Facebook than on any other website, and more than 500 million people around the world have signed up for it.

Analysts say that if Facebook Messages proves successful, it could greatly increase the time users spend on the site, making Facebook even more dominant.

But some note that the company will face a number of challenges, like managing spam, getting users to change ingrained habits and persuading some to entrust their confidential e-mail to a company whose privacy practices have often drawn scrutiny.

The new service, which will encourage users to sign up for an e-mail address ending in @facebook.com, has the immediacy of instant messaging and chat built in. Zuckerberg sought to downplay the threat that Facebook Messages would pose to existing e-mail services.

“This is not an e-mail killer,” Zuckerberg said, adding: “We don’t expect anyone to wake up tomorrow and say they are going to shut down” their current e-mail accounts.

The service is invitation-only for now, and will be rolled out to all users over the next few months.
Some analysts said that over time users were likely to spend more time using Facebook Messages and less with their traditional e-mail services, especially as they communicate with their closest friends and associates.

“They just made it so much more compelling to centre my communications on Facebook rather than anywhere else,” said Charlene Li, an analyst with the Altimeter Group. “Google, Microsoft, Yahoo should all be worried.”

Li said that e-mail was already being “nibbled to death” by services like instant messaging and chat, and that Facebook Messages, if successful, would accelerate that trend.

Still, for more than a decade, technology companies have sought to offer services for “unified communications,” often without much success outside of the business market.

And other e-mail providers, including AOL, Google and Yahoo, have taken steps to make their e-mail services more “social,” by prioritising the messages of friends or integrating text messages.

“Just like it is not easy for traditional e-mail companies to compete in social, it is not going to be easy for social companies to compete with e-mail,” said Brad Garlinghouse, president of consumer applications at AOL, which last week unveiled a service that also allows consumers to consolidate e-mail and other messaging accounts in one place.