Web 2.0 will not burst?
Hundreds of service creators and investors will take part in the third annual Web 2.0 Conference , which will be held from November 7 to 9 in San Francisco (USA).
Among the issues that will be discussed by leading “webdvolannye” experts are network infrastructure, information protection, the future of video content, integration of services, etc. The discussion of these topics will be attended by representatives of the leaders of the online sphere - Amazon.com CEO Jeff Bezos, Facebook CEO Mark Zuckerberg, Google Vice President Marissa Mayer.
Conference participants who witnessed the “crash of dot-coms” note that the majority of projects appearing on the network are based on very few good ideas.
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However, unlike the “bubble” of the end of the 90s, the “bubble of Web 2.0” is “more thoughtful”. It must be admitted that in the wave of startups there are unsuccessful projects, either already failed, or doomed to a speedy closure. However, at the start they operate with relatively small amounts of several tens of millions of dollars - therefore, in case of failure, the market will not suffer much. In addition, many network companies create a replacement for conventional computer programs — web applications (or, as they are called services), more viable and responsive to users and advertisers.
“A lot of companies will fail without a doubt,” said Joe Kraus, one of the creators of Excite and JotSpot , acquired by Google last week in an interview with News.com . “But users will benefit from a lot of innovation anyway.”
Purchases made by Google, Yahoo, Microsoft and other "web giants" only help the development of new interesting projects. Multimillion-dollar transactions, of course, resemble the market of the 1990s, in which non-profitable “assets” turned. However, analysts say that new business models are more thoughtful, developed, which gives current startups a better chance of survival. And automated advertising platforms “make life easier” for both webmasters and advertisers.
“The novelty of business models is the main difference between“ Internet Part 1 ”and“ Internet Part 2 ”,” says Brad Silverberg, one of the leaders of the venture capital firm Ignition Partners . - “Previously, everyone tried first of all to produce effect and thought little about how to make money. Now it's the other way around, and it's safer. ”
Silverberg says it’s difficult for novice software developers to compete with monsters like Microsoft or Adobe. However, some newbies develop web applications that can become - and become attractive to ordinary users and corporate clients.
Activity in the field of “webdwolf” startups is only growing. According to PricewaterhouseCoopers and the National Venture Association (USA), investments in this sector in the third quarter of this year exceeded $ 130 million (in the same period of 2005 - $ 107 million). Developers have access to open-source software, relatively cheap hardware and powerful development tools. In conditions when many services open API, developers can create the new integrated services collecting the information from many sources.
John Girard, founder and CEO of Clickability , is currently thinking through issues related to the second round of investment. He notes great differences compared with 1998, when his company was established: now for $ 7-9 million dollars you can do as much as you could make for $ 60 million 7-8 years ago. Cheap development tools, marketing technologies and free software greatly reduce the cost of starting a project.
In the current situation, change their strategy and investors. Now they are investing relatively small amounts (in the range of $ 5 million) in start-up development companies, or they spend significantly more, but on large projects with a solid client base.
Of course, commentators point out alarming moments in the development of Web 2.0. Investor Mike Coss notes that many startups sometimes forget about the need to earn money, as a result of which investors have to put pressure on the creators. And John Girard, already mentioned above, is talking about the overheating of the job market: recruiting offices are chasing a new workforce, and large employers are actively expanding their staff.
In general, the majority of participants in the Web 2.0 conference are optimistic about the future of their own sphere. It does not devour huge financial flows, as it was in the late 90s, and therefore it is unlikely to be able to bring down the entire market. The disadvantages of new business models are not too obvious, but they may soon become obvious - then we can say how justified this optimism was.
Among the issues that will be discussed by leading “webdvolannye” experts are network infrastructure, information protection, the future of video content, integration of services, etc. The discussion of these topics will be attended by representatives of the leaders of the online sphere - Amazon.com CEO Jeff Bezos, Facebook CEO Mark Zuckerberg, Google Vice President Marissa Mayer.
Conference participants who witnessed the “crash of dot-coms” note that the majority of projects appearing on the network are based on very few good ideas.
')
However, unlike the “bubble” of the end of the 90s, the “bubble of Web 2.0” is “more thoughtful”. It must be admitted that in the wave of startups there are unsuccessful projects, either already failed, or doomed to a speedy closure. However, at the start they operate with relatively small amounts of several tens of millions of dollars - therefore, in case of failure, the market will not suffer much. In addition, many network companies create a replacement for conventional computer programs — web applications (or, as they are called services), more viable and responsive to users and advertisers.
“A lot of companies will fail without a doubt,” said Joe Kraus, one of the creators of Excite and JotSpot , acquired by Google last week in an interview with News.com . “But users will benefit from a lot of innovation anyway.”
Purchases made by Google, Yahoo, Microsoft and other "web giants" only help the development of new interesting projects. Multimillion-dollar transactions, of course, resemble the market of the 1990s, in which non-profitable “assets” turned. However, analysts say that new business models are more thoughtful, developed, which gives current startups a better chance of survival. And automated advertising platforms “make life easier” for both webmasters and advertisers.
“The novelty of business models is the main difference between“ Internet Part 1 ”and“ Internet Part 2 ”,” says Brad Silverberg, one of the leaders of the venture capital firm Ignition Partners . - “Previously, everyone tried first of all to produce effect and thought little about how to make money. Now it's the other way around, and it's safer. ”
Silverberg says it’s difficult for novice software developers to compete with monsters like Microsoft or Adobe. However, some newbies develop web applications that can become - and become attractive to ordinary users and corporate clients.
Activity in the field of “webdwolf” startups is only growing. According to PricewaterhouseCoopers and the National Venture Association (USA), investments in this sector in the third quarter of this year exceeded $ 130 million (in the same period of 2005 - $ 107 million). Developers have access to open-source software, relatively cheap hardware and powerful development tools. In conditions when many services open API, developers can create the new integrated services collecting the information from many sources.
John Girard, founder and CEO of Clickability , is currently thinking through issues related to the second round of investment. He notes great differences compared with 1998, when his company was established: now for $ 7-9 million dollars you can do as much as you could make for $ 60 million 7-8 years ago. Cheap development tools, marketing technologies and free software greatly reduce the cost of starting a project.
In the current situation, change their strategy and investors. Now they are investing relatively small amounts (in the range of $ 5 million) in start-up development companies, or they spend significantly more, but on large projects with a solid client base.
Of course, commentators point out alarming moments in the development of Web 2.0. Investor Mike Coss notes that many startups sometimes forget about the need to earn money, as a result of which investors have to put pressure on the creators. And John Girard, already mentioned above, is talking about the overheating of the job market: recruiting offices are chasing a new workforce, and large employers are actively expanding their staff.
In general, the majority of participants in the Web 2.0 conference are optimistic about the future of their own sphere. It does not devour huge financial flows, as it was in the late 90s, and therefore it is unlikely to be able to bring down the entire market. The disadvantages of new business models are not too obvious, but they may soon become obvious - then we can say how justified this optimism was.
Source: https://habr.com/ru/post/4656/
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