Thursday, August 30, 2007

Unlike the Dot Com Bubble, Web 2.0 isn't Going to Bust

Some people are waiting for the Web 2.0 bubble to bust but I don't think they should hold their breath. And here's why:
  • Savvy investors learned their lesson and are paying more attention to revenue before taking the IPO leap. LinkedIn, for example, is projecting $100 million in revenue next year.

  • Web 2.0 is more than hype - it's a new business platform. In fact, I see more similarity between Web 2.0 and the PC boom than the dot com bust. The introduction of the Windows operating system let software makers stop worrying about platform integration and focus on functional innovation. The advances in browser technology makes it even easier for application makers to innovate and the PC office is now the web office.

  • Web 2.0 is more than just a technological evolution - it's a cultural evolution. It's about people connecting to people using various types of social software. Unlike the focus of many dot com ventures, the purpose of most Web 2.0 applications is not to save time or money. Many of these applications, such as LinkedIn, Myspace, etc, are literally changing social behavior. Take away my chance to save 15% on my pet food purchase, I’m probably OK – but take away my online social network and you’ve changed the way I live. My social network, unlike my pet store, is a primary focus of my life. The fact that I’ve automated and internet-enabled my social interaction likely makes it the stickiest application I use, second only to my communications platforms: email and instant messaging.

Welcome to the Web 2.0 economy where people are given a voice and empowered to make a difference. I have used the 'new web' to make new friends, share my insights and more easily take my work with me with web apps. How has Web 2.0 changed your life?

1 comment:

Silvia said...

I've decided to compose my degree thesis about the web 2.0 and the influence that this have had on the relationship between customers and companies. during my research I found out an interesting web site where the customers became protagonist of the advertising. the site is www.zooppa.com and it is a platform for advertising made by users and sponsored by companies.
this website gives advertisers the chance to brief online video ad developers for considerabily less than the cost of a production agency.
this is a real revolution made by the opportunities of the web 2.0.