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Economic deja vu hitting tech startups (sfgate.com)
6 points by gibsonf1 on April 22, 2008 | hide | past | favorite | 2 comments


Web 2.0 is becoming convoluted with me-too-variants, it's the same thing that happened toward the end of 1.0. Early-adopters and technocrats see past the distortion, but your mass-consumer does not. Growth for middle-to-late comers does not match that of the early 2.0ers for which they've structured their model around...

In many cases, these socially focused applications/sites are caught in a whirl-pool... interest trickles-in and trickles-out, making it difficult to self-sustain the business, particularly when it relies on the end-user for content. While Twitter is doing well now, I believe they suffered a full year paddling against this traffic current.

In addition, I feel there are too many startups trying to encompass everything-social shooting for that big valuation; focus on low-commitment reward for the end user and get the data later. Rolling out with with a stage set for 10,000,000 makes adoption intimidating, and makes your infrastructure costs a significant burden.

3.0 will see an increase in service-oriented applications and hopefully a rise in XMPP whereby data of interest comes to you, you don't go to it... With all the major communication networks moving over to Jabber, it's shaping to be the next secondary telecom-market. I believe Facebook is poised early to make a move here, as they are mirroring GTalks success integrating with GMail. The beauty of Jabber is that it's essentially universal and real-time, so services can be network-agnostic (ie: AIM, MSN, Gtalk, etc..). Think communication-bot on steroids.

A tech recession is normal and welcoming TBH. It filters out some of the pollution and with a globalized market, there's an abundance of it..


This is over analysis to the point of paranoia. I've written about the counterview here: http://blog.snaptalent.com/?p=9




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