Firms should be ready to take advantage of falling prices for
enterprise
Web 2.0 applications as the market becomes increasingly
crowded.
A report from analyst Forrester says the
enterprise Web 2.0 market is "experiencing an explosion of
activity among enterprises seeking collaboration and productivity
improvements".
Forrester analyst Oliver Young, however, says prices are
expected to fall for the services and apps offered by Web 2.0
suppliers.
He said, "Whilst the explosion is placing Web 2.0 technology in
the hands of millions of knowledge workers, cut-throat competition,
commoditisation, bundling, and subsumption are all offsetting the
associated licence revenue growth."
Forrester expects that most Web 2.0 tools will experience
falling average deal sizes over the next five years, with some deal
sizes dropping by more than half.
Young warned suppliers, "Product managers must take steps today
to manage increasingly competitive times ahead."