Web 2.0: Why the Buy Me Exit Strategy is Flawed

Phil Sim, one of my favorite bloggers, has a great and accurate article today about the Web 2.0 madness. His post ought to be read as a companion piece by anyone who remotely agrees with my Play Dough theory on Web 2.0.

web20Among Phil’s points is that Google Calendar will simultaneously take away a preferred exit strategy and strike a deadly blow to many of the hundred thousand or so Web 2.0 online calendars (many of which have been contestants in my Web 2.0 Wars series). Moreso, but similar, to how GDrive will strike a blow to any unestablished online storage service (Box.Net being one that may have enough legs to outrun the bullet).

We ran into some of this back in the day with ACCBoards.Com as we sought out big media partners. We’d get asked “why should I pay you to run an interactive site when we can do the same thing you’re doing and pay you nothing?” My answer, of course, was that we had all the traffic. We partnered up with Cox Cable and Jefferson Pilot Sports for years.

These Web 2.0 companies don’t have the traffic to trade for a purchase price.

That’s the biggest flaw in the sell yourself to Google as an exit strategy.

We are getting closer and closer to a Web 2.0 shake up. It’s coming.