Trends Report

Vendors: Prepare For Falling Prices For Enterprise Web 2.0 Collaboration And Productivity Apps

October 9th, 2008
With contributors:
Peter Burris , Zachary Reiss-Davis

Summary

The enterprise Web 2.0 market is experiencing an explosion of activity among enterprises seeking collaboration and productivity improvements. While that explosion is placing Web 2.0 technology in the hands of millions of knowledge workers, cutthroat competition, commoditization, bundling, and subsumption are all offsetting the associated license revenue growth. How bad will it get? Forrester expects that most Web 2.0 tools will experience falling average deal sizes over the next five years, with some deal sizes dropping by more than half. Product managers must take steps today to manage increasingly competitive times ahead.

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