There are predictions and analysis going around the web that Web2.0 is waiting to go burst!! Some time the Google -YouTube as the first hint of a bubble burst!! Some others say all this community participation, hit count is not measurable units for sustaining a Web2.0 growth!!
Here is straight question to them, when did you correctly predict the last dot com burst? After it happened, right? I might be on the wrong side of Web2.0 who passionately thinks Web2.0 is here to revolutionise the way we use “web” to do things. It has started its path of innovation and may be on the way it might burst but it will definitely have its impression the way web1.o had in terms of successful enterprises like eBay, Yahoo, Amazon and Google, many others. Yes Tom Dick and Harry website failed and they were the culprit of dot com crash because they thought anything can earn them profit in this crazy web market place.
However market has learned from that harsh reality and at least now we see only 1 in 10 Web2.0 solution having the old Web1.0 mentality of launching any damn solution in marketplace and capitalise from the hype. They are bound to fail but I doubt if they will take the whole Web2.0 with them.
Another major factor which is helping marketplace to stay stable and educate Web2.0 entrepreneurs is the Social Media i.e. the blogs, community reviews. New entrepreneur are able to learn what is happening in market place and able to “market research” before jumping which according me was completely missing during Web1.0. During Web1.0 every new entrepreneur thought in terms of “if they can do why can’t we”! However in Web2.0, the entrepreneurs I have met are thinking if they can do, let’s think what other way we can do the same/variant. You see the difference? Market research has reached to masses and they are aware of failure of copy cat solution and therefore staying away from polluting web2.0 marketplace.
During Web1.0, some VC ruled mind of entrepreneurs!! I think the VCs got blind with a new technology and potential of returns and forgot all the basics. Without educating/participating along with the entrepreneur to innovate services, they invested heavily thinking marketing is all the mantra to go big. But see what the successful players did like Amazon or eBay; they were purely innovative and followed principles of market leaders rather than spending to build services which customer can never use!! BTW there were intelligent VC’s backing these successful players 😉
Now let’s take Web2.0 and VC!! These days you hear community, community…innovation…innovation and on the way you hear small related VC news. Frankly speaking many Web2.0 entrepreneurs are building services which are sustainable because they no longer need to spend millions in doing market survey, pay millions in advertising to seek user’s attention. User is right there with them from day one. In this scenario, VCs are investing in solutions which has already got market appeal or innovatively placed. There are exceptions but they are 1 in 1o.
Another major factor which will support Web2.0 is the success of global offshoring. During Web1.o, IT was still a new thing in many parts of the world therefore all innovations were aimed for US market only. However post dot com burst and with Web2.0 US is not the only market!! Take any case be it MySpace or YouTube(they are just an example), the global audience is behind their success. This has become possible because due to offshoring lot of new market has been created(or getting created) which now offers more potential than it did during Web1.0.
Demographic factor : Web2.0 has younger internet audience and participating across many parts of the world. We hardly saw them during Web1.0.
So let’s hold on to the theory of burst. Let’s concentrate on how Web2.0 gets it’s full due.