However, Forrester's report doesn't bode well for startup vendors hoping to make it big with Web 2.0, Young said, as the technology created by larger enterprises like Six Apart and IBM has created a bit of a commoditization factor.
"We're seeing enterprise-class software coming from startups, but we're seeing them through very low price points ... so it [Web 2.0] will never be a megamarket," Young said. "It will eventually disappear into the fabric of the enterprise, despite the major effects the technology will have on how businesses market their products and optimize their workforces."
The consumer-facing ad-funded Web 2.0 sites like Facebook, MySpace, and Delicious also will have difficulty as similar technologies are incorporated into the enterprise. "Even Google is having a hard time selling the advertising," Young said.
Still, startups have much to gain in pursuing the Web 2.0 world -- such as understanding of how companies are adopting their technology. Small groups within a company are more likely to adopt blogs, wikis, mashups, and widgets, Young said. The key to adoption, he added, is to show how there is a business value in using the Web 2.0 tools.
"What we recommend is to start with a very specific problem and work your way up from there," Young said. "For example with a wiki, you can't have everyone try to use it at once. You should start on one team individually and then move on when that team is successful."
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