Web 2.0 Business Models?

Spending this early Sunday morning catching up with blog activity from various former colleagues. Especially like thoughtful posts from Adam Wolff, Narendra Rocherolle and Raj Kapoor - all gifted digerati actively grappling with the future of software. They comment on aspects of Web 2.0 that many find befuddling. Why is this important? How does it make money? What is the basis of recent valuations of acquired applications?

The new services seem destined to be free, and to generate economic value only as potential ad media placements or as acquisitions. Presumably, all those teenagers and young adults reveal enough via their open communications for marketers to instigate a stampede to various products and services. And the economic opportunity appears confined to serving the young audience, because older generations do not adopt these Web 2.0 services in sufficiently large numbers to support significant advertising business models.

Interesting riddle.

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