A simple analysis on Web 2.0

What is Web 2.0? Is it only a buzz word or something more than that? Web 2.0 doesn't have a standard definition as t is a cluster of ideas rather than anything clear-cut. Web 2.0 technologies bear strange names like wikis, blogs, RSS, AJAX, etc., and most of them mention a lot about how Software as a Service can be used effectively for unstructured data and collaboration.

The ability of Web 2.0 to scale up to many users, better use of bandwidth, ease of use and cost effectiveness indicates that the traditional method of selling big corporate software applications as multimilion-dollar packages that take years to implement is broken. Most of the enterprises are fine with using Software as a Service except some groups like financial institutions who feel insecurity for having their data outside their corporate's firewall. It is also a big concern that storing and accessing data over Internet is often not secure from hackers or rivals.

Just how PCs have made their way into the companies through the back door, so it is going to be with Web 2.0 services. It is not that Package software era is dead but advantage of using software as a service is huge. This portends a real big change in the software industry. And many of the product companies are changing their businesses to a service company and put their software online.

What a Software as a Service has to offer?
Using it is as a model of software delivery/service, the software providers can:
* Prevent Piracy
* Earn recurring profits by means of subscription
* Reduce overheads on sales and make sales easier
* Cut middle men in distribution and retailing

And as a consumer, they have following benefits:
* Need not to worry about installation
* Need not to worry maintenance
* Cost effective.

The only concern that a Software as a Service need to address is the Data Security of the users.