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Why investors should care about Web 2.0

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Just what is "Web 2.0"? Well, is a mash-up term used to describe many things. It is about the power of real-time global collaboration over the web. It's about re-inventing the wheel from old-school personal computing, to web-based shared-information computing. It's also about the companies that are making major changes happen in the way we interact over the web for personal and business uses.

Dump out the terms RSS and AJAX to many people, and you'll get blank stares. Truth is, these same folks may already be using these Web 2.0 technologies (if they can be labeled that) in their everyday life. Google's products such as Gmail, Calendar and even the newly-released Spreadsheet all use AJAX technology to make the consumer experience smooth -- so it feels like you are running a locally-installed piece of software on your PC, when these services reside solely on the web.

Salesforce.com is, and has been, fostering a web-based way to keep sales teams and customer relationship teams connected and collaborating across the web at any time and from any Internet-connected machine. No more locally-installed sales figure tracking programs. Just log onto a website and voila! -- you're there.


In addition, you no longer have to visit a laundry list of websites every day to get your fill of the news -- whatever news you're interested in. Install an RSS aggregator (web-based like Bloglines or Rojo, or an application like FeedDemon), and have all your news delivered to your desktop instantly as updates happen.

All of these things comprise Web 2.0 (along with many other applications), and they are changing the way people use the web. Can companies adjust to how customers are going to find them? They better, since they pace of change on the web can happen seemingly overnight. If the companies you are investing in are on the web and aren't looking at Web 2.0 technologies, ask why. You don't want to be left behind.

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Last updated: November 25, 2009: 05:31 AM

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