More than 40 percent, or 2.8 million, SMBs in the U.S. are already using Web 2.0 applications despite the lack of a distinctive definition for the new platform, according to a market study by AMI-Partners.
From software-as-a-service (SaaS) to Skype to Amazon and eBay, SMBs are adopting Web 2.0 to cut costs, improve profits and reach customers.
"It really wasn't until Web 2.0 came into play, that people can leverage these types of platforms to make more useful solutions more collaborative solutions that can help small and medium businesses."
While debates abound on the actual definition of Web 2.0, AMI-Partners views Web 2.0 as the second generation of Internet-based services, distinguished by the transition of static websites to a platform for applications development, creating opportunities for developers and ISVs to monetize new applications in new ways.
This results in new opportunities for the users of these applications to consume them and express themselves in ways not possible before.
"We see Web 2.0 as a revolution in the sense that now you're using information that's supplied by more than just the person that posted the website," said Chan. "It comes from the masses; the power of the masses. The more people that use it, it's more useful."
The AMI studies on U.S. SMBs concludes the following factors will drive growing SMB usage of Web 2.0 applications:
AMI believes the ingredients for successfully courting SMBs with Web 2.0 applications will include service offerings that encourage collaboration and allow for customization, while addressing user security concerns.
Some emerging areas of robust growth will include online storage and backup solutions, hosted CRM and SFA solutions, Web-based productivity tools, and other online collaboration solutions.
The Web 2.0 wave is not only changing user consumption behavior, but also the channel landscape for independent software vendors (ISVs) and their business models. Large vendors such as Microsoft, Google and IBM should also consider the impact of their Web 2.0 developments on ISVs and how to leverage these channel partners in the SMB space.
About the Study
The results come from AMI Partners International reports,2006-2007 United States Small and Medium Sized Business (SMB) Market Overview and Comprehensive Market Opportunity Assessments.