Web 2.0 and social networking tools have held the promise of fostering closer customer relationships and the potential for profits, but there's always been a hint of uncertainty about their effectiveness.
As the global credit crisis dries up available capital, particularly for new technology investments, where does that leave the market for social networking and Web 2.0?
For collaboration and productivity application vendors, often referred to as Enterprise 2.0, things were already looking gloomy before the crisis hit, according to G. Oliver Young, an analyst with Cambridge, Mass.-based Forrester Research. Young recently authored a report suggesting that prices for such technology will fall over the next five years owing to a number of factors, including commoditization; the bundling of multiple Web 2.0 tools into suites; and larger, traditional enterprise software vendors adding these features at no extra cost. And that report was researched and written before the credit crisis struck.
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