Scott McNealy, the legendary chairman and co-founder of Sun Microsystems, is optimistic about the growth of the Internet and believes the dot-com bust is a thing of the past.

He believes that the real growth of Internet is happening - an average of over 2 million users are added per day. The world wide web is recording electronic transactions of over $228 billion, deploying ERP, CRM and Web 2.0 technologies, while the use of mails, blogs and instant messengers are on a rise.

McNealy cited that the world was witnessing the third wave in technological innovation. The first was about enterprise solutions where information was digitised and systems created to enhance productivity. The second wave was about the Internet and related technologies. The third wave, McNealy adds, is about participation.

In 1990’s $100 billion was raised in one year fell to a low of $4 billion in 2002, in 2005 some 500 companies web2.0 companies raised $3.2 billion. Last year 700 such companies raised $4billion in first quarter.

The web 1.0 bubble was a mix of stock market hype and underperforming companies that resulted in a disastrous tech crash. In a way i think many companies learned a lot from dot com bust, the digital envirinment is now completely different from what it used to be in early 2000’s.

I still have some concerns about the Web 2.0 bubble; most web 2.0 sites rely a lot on advertising and very less on users paying for a service. How many users in a social networking website participate constructively, what value are they going to bring to customers at the end of the day??

Its easy to build a ‘me too website’ (Clone) but very tough to build a community. Technology and features are no longer a deterrent, but community is. I strongly feel there will be only few winners and many flop shows in the web 2.0 arena.

Via: Business Standard

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