July 10, 2007
Volume 12, Number 22
CHRIS SHIPLEY: ENTERPRISE READY FOR WEB 2.0 DISRUPTION
A funny thing is happening on the way to preparing for DEMOfall 2007, the product launch event scheduled for September 25 - 27 at San Diego's Sheraton Harbor Island hotel. While much of the technology market has turned its attention in lockstep to Web 2.0 widgets, mashups, and the general disruption of the social Web, pockets of very bright engineers are working on some disruption of their own across a range of enterprise infrastructure.
Much has been said of the disruption of Web 2.0 to the ecosystem of early stage companies. The economics of startups have changed dramatically. Open source and open APIs mean a very little bit of capital and a lot of ingenuity can take a small startup a very long way. When economics shift like this, the entire ecosystem of early stage software companies shifts. Marketing budgets have gone to near-zero, having given way to guerilla marketing and blog PR. Large IT companies are hustling to adjust and become more agile in the face of rapid change.
The venture market also faces disruption. Startups need little or no venture capital, and that challenges the prevailing model of venture capital economics. VCs raise large funds to invest in significant amounts, across a manageable portfolio of companies. That works when it takes $20 million or more to get a company to a potential $500 million or more exit. It doesn't work so well when a $100,000 here or there may yield a sub-$100 million exit.
Read more at:
http://www.demo.com/demoletter/enterprise_infrastructure_ready_for_web_20_disruption.php
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KEITH SHAW: SOCIAL NETWORKING LOYALTY SCHMOYALTY
Brand loyalty has always been an important driver for companies that want to keep their customers - when you're successful, the loyal customers are an extremely valuable tool in helping spread the message of the brand (just ask a Diet Coke fan if they'd ever drink Diet Pepsi, or vice versa, for example).
But in the world of social networking and Web 2.0, it turns out users are pretty fickle. According to a report by Parks Associates, nearly 40% of MySpace users keep profiles on other social networking sites, such as Friendster or Facebook. Parks goes on to say that loyalty among smaller networking sites is even lower, with more than half of all users actively maintaining multiple profiles.
This fickleness may not be such a bad thing, at least compared to "real world" brand loyalty like the aforementioned Diet Coke/Diet Pepsi example. An environment where nearly half of all social networkers regularly use more than one site creates opportunities for new social networking sites that are all tied together by links, widgets and the users themselves, Parks says. "A handful of users are all it takes to connect new services to the MySpace-centered environment," says John Barrett, author of the Parks report "Web 2.0 & the New Net."
Read more at:
http://www.demo.com/demoletter/social_networking_loyalty_schmoyalty.php
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DEMOTRACKER: The latest from DEMO alumni
* MooBella (DEMO 2006) scoops up $25 million in funding
* CircleUp (DEMO 2007) raises $3 million in Series A.
The complete DEMOtracker archive is located at http://www.demo.com/demoletter/weather_report.php
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Become the NEXT Tech Trend: Launch at DEMOfall 2007
Catapult your new technology into the VC/press spotlight on September 24-26 in San Diego. DEMOfall is a highly coveted launch platform that gives your company high visibility among the tech industry's movers and shakers - those with the power and connections to propel your success on an international scale. It's arguably the most successful venue for positioning new products and establishing strategic relationships. For more info on launching, visit: http://www.demo.com/F7DLLAUNCH
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See What's NEXT at DEMOfall 07
DEMOfall unveils the top innovations and the individuals who are envisioning the future of technology and turning it into reality. Every demonstrator is researched and vetted by industry experts, so you'll see the "best of the best" in just two days. Save hundreds of valuable hours in your search for your NEXT opportunity by joining us on Sept 24-26 at the Sheraton San Diego. Register now and be there for our most exciting showcase yet: http://www.demo.com/F7DL1
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SUBSCRIPTION INFORMATION
DEMOletter Weekly Edition is written by Chris Shipley <mailto:chris@cshipley.com> and Keith Shaw <mailto:kshaw@nww.com>
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Copyright 2007
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