Business savvy will trump

... technology widgets. Everytime. I have started to wonder how the web will grow business that are funded with millions of dollars to provide services that are free. Sure - the premium thing works - until there are so many players in the space that there is a constant stream of 'free' apps. I can think of at least 3 web-based word processing apps... all free. Read this whole thing from one of the founders of Flickr.

Caterina.net: It's a bad time to start a company: "Web 2.0 isn't all that. Hello?. I don't think there's a rising tide lifting all boats here. I don't think Web 2.0 is the magic bullet some people seem to think it is either. It ain't the features, it's that AND the business. Tagging was a great feature, no doubt. But Flickr was at break even -- about to tip into the black -- when we were acquired."

UPDATE: See above for a dead-on rebuttal. Or click here.