by C.G. Lynch

Recession: A Ripe Time for Web 2.0 Vendors to Strike in the Enterprise?

Jan 28, 20082 mins
IT Leadership

A recent TechCrunch post made an interesting case that cuts in technology spending could spur companies to buy cheaper software from Web 2.0 alternatives that operate on pay-by-the-user models and are often delivered over the web.

According to this Times story (which cited an IDC report), tech spending will fall from 7 percent to 4 percent or less. In such conditions, would CIOs take a harder look at cheaper (and often more user-friendly) options found in Web 2.0 software?

We’ve seen a lot of IT shops who have already embraced Web 2.0 vendors for their collaboration needs. We chronicled a Berkshire Hathaway Company that was using Jive, a Web 2.0 software company that offers enterprise-grade wikis, blogs and community file sharing for $59 a user (over 25 users).

This came in contrast to companies that buy a collaboration suite like Microsoft’s SharePoint, which is much pricier.

Of course, Microsoft, IBM and other incumbents will say they have more elaborate functionality, better security and scalability than the Web 2.0s of the world. And until now, that argument has resonated with many corporate IT departments. (Sticking with the SharePoint example, CIO recently did a piece where CIOs touted the collaborative suite’s many benefits).

But when times get tough, would CIOs start taking a look at these Web 2.0 vendors more closely? Might they become more discerning of whether or not traditional options actually are more secure? Is the “we’re safer” argument that’s offered by the incumbents on its last legs?