Monday, April 21, 2008

Expect $4.6 Billion In Spending By 2013 As Large Companies Embrace Web 2.0

A new report released today by Forrester Research is predicting that enterprise spending on Web 2.0 technologies is going to increase dramatically over the next five years. According to the report, enterprise spending on Web 2.0 technologies will grow strongly over the next five years, reaching $4.6 billion globally by 2013, with social networking, mashups, and RSS capturing the greatest share. Enterprise web 2.0 tools will be adopted, provisioned and embraced by the enterprises over the next five years overcoming all the challenges of technology, monetary benefits, business market and corporate cultures.

Web 2.0 market place is divided into consumer and enterprise services. Consumer services includes Myspace, FaceBook, twitter etc., targeted towards consumers, monetized through ads and evaluated based on traffic. The consumer services are part of enterprise services.

Enterprise services have two aspects - Internal and External. Internal aspect is aimed at the employees, internal communication, knowledge sharing and product innovation. External aspect is geared towards customers and partners, marketing and sales, product development, customer services and retention, and new opportunities.

This reports covers some of the most compelling questions. What Is Enterprise Web 2.0 Software? Can Software Firms Make Money Selling Enterprise Web 2.0 Tools? And talks about external and internal facing markets and how it will be driven.

Overall the reports align with the trends in the market place. Enterprises are keen in adopting web 2.0 principles in both external and internal aspects. Knowledge Management is being replaced with web 2.0 collaboration and social networking applications. The executives understand the need, but knowledge of web 2.0 and how to implement is still missing. They are opting for less risky web 2.0 pilot applications instead of realigning their business strategy with web 2.0. But I am sure success of pilot applications will lead to bigger initiatives. It is just a matter of time and confidence.

There is lot of scope of ideas, technology and services for all product companies, service providers and enterprise IT teams in coming years. The web 2.0 products who have not yet seen the light would reap benefits from the enterprise adoption. Service vendors who have knowledge of web 2.0 and their challenges can take advantage of web 2.0 deployments and create a niche market for themselves. The enterprise IT team will either have to consolidate their ideas and resources or outsource the new initiatives in web 2.0. But in the end, it will be win-win situation for all players in the web 2.0 space.

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