Web 2.0 – Tim O’Reilly and John Battelle

Web 2.0 – Web as a Platform
The State of the Internet Industry
10/5/04

John Battelle, Battelle Media
Tim O’Reilly, O’Reilly Media, Inc.
(not a transcript)

Tim:
The old software stack consists of proprietary software, hardware and hardware lock-in. The web stack consists of proprietary software, integration of components and data lock-in. We need to migrate down to data suppliers and up to companies achieving network effects.

John:
The architecture of participation is seen in google, flickr, ebay where they let the user build the content which creates network effects.

John:
The architecture of participation is seen in google, flickr, ebay where they let the user build the content which creates network effects.

Tim:
Amazon overlays network effects on a commodity business. Data is the Intel Inside. The networked world must standardize. Software apis are no longer the lock in point (microsoft vs. msn). The control of data, databases, namespaces is the advantage now, provided by companies such as navteq, mapquest, cddb, network solutions, adwords, ebay.

John:
There’s innovation in assembly and value in aggregating, managing, analyzing, and creating simplicity out of complexity. Companies such as dell, spikesource and rojo are doing this.

Tim:
In our Safari web based subscription service, we’re looking to deconstruct books and allow professors to create custom text books and companies to provide custom corporate data sets. Why buy 10 books when you can put the data you need into 1?

John:
Lightweight business models where distribution, development and AOP means new generation. Amazon and ebay vs. walmart. Google and Yahoo news vs. New York Times.

Tim:
We’re seeing the end of software upgrade cycles. It has taken Microsoft over 5 years to get to Longhorn. The web is constantly updating in a launch and iterate cycle. Companies such as salesforce, itunes, firefox, quicken use the web as their upgrade platform. We’re seeing enriched service through IMs and boards.

The ipod is software above the level of a single device, designed from the getgo to go from hardware to the web in an integrated application.

John:
The Power of the Tail – the force of many. 1 million sites with 1000 users is far more powerful than 100 sites with a million users. 100,000 bands selling 5000 albums not 50 bands selling 1 million albums. This has brought independent bands and record labels straight to their listeners. Adsense has brought advertising to the small companies.

Tim:
The Tail is growing. Just look at Amazon and all the users developing from their api and selling on their sites.