Is Web 2.0 or Social Networking all people are after?

I have been reading and following a lot on web2.0/Social Networking and its flavors for the past year or two.As much as I have been impressed by the ubiquitous nature, of late I have been bombarded with the question as to whether web2.0(or any of those 3.0’s or 4.0’s) will be able to live up to the hype.

There are many companies in this area and most part of their business model is centered around advertisements and/or free basic account followed by paid premium accounts. While the user base for free experience builds in a flurry (if the offering is interesting or intriguing), the user base of paid accounts don’t generate much revenue impact. There are many cases to illustrate this fact so much so that there is no heralding of new age business model for web 2.0.

Most web 2.0 businesses seem to be inclined towards being acquired by Big Players in the similar field.

• Is being acquired the ‘unsaid’ business model?
• Is the boon of web 2.0 more an inexplicable phenomenon that a decipherable fact?

No doubt that web 2.0 has brought in a totally unique user experience and aspect of personalization in what the user gets, and how he gets it, but there probably has to be more.

Take a look at the ‘TOP 10 Strategic Technology Areas’ that was released early this year

While there are variants and flavors contributing to web 2.0 or social networking in the list of areas, I am thrilled to see more areas that are from a different realm than the current fad of Web 2.0 or Social Networking.

Why more and more silicon valley folks are going towards this web aspect in new startups? While there may be value in their offering, I do not see it to long last as a business. So is the business motto of people conditioned more towards short term gains? Agreed, people are entrepreneurial but they are also technical (or rather IT hardcores). So is this trend catapulted more by the openness of belief that every two years they will come across new product ideas and new avenues, that they can capitalize on and create a company out of it. Thinking about it, it could go either way. Some people have been successful with profitable venture after venture but there is no recipe for repeated and global success in such areas.

I remember a good friend of mine saying, “worth of a product is based on the number of man months advantage you have over your competitors”. While I agree with this completely, I am not sure how many people out there are in sync with that traditional philosophy.