Tuesday, 14 October 2008

If Enterprise 2.0 software gets cheaper, will they invest more in the people issues?

ReadWriteWeb provides a summary of a new report from Forrester that predicts changes in the pricing of Enteprise 2.0 software tools:

the market for collaboration and productivity web apps in the enterprise (a.k.a. enterprise 2.0) is set for a shake-up, with prices to fall in some cases by over half. Price drops will be especially sharp in blog, wikis, social networking and widgets. The only exception is mashups, which will increase in price over the next 5 years.

Forrester says the price drops will be due to "cutthroat competition, commoditization, bundling, and subsumption", with many startups and established big companies competing for the enterprise dollar.

There is still expected to be strong adoption by enterprises of web 2.0 apps, which will result in increased license revenue. However that will be offset by the large price drops.

However, I’m particularly pleased to see that Forrester (quoted by RWW) say that Enterprise RSS will play "a critical role as the Web 2.0 middleware, staving off major price declines." compared to other Enterprise 2.0 tools.

I do also hope that if companies are able to spend less on the software they install then they will be able to invest more in the implementation.

1 comment:

  1. I hope you're right about the increased spending on implementation. The cynic in me says "no way".


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