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Report: Enterprise to Embrace Web 2.0 as Prices Drop

Ars Technica reports: Social media tools designed for the enterprise are getting all grown up, and a new report from Forrester Research says it's time for a market readjustment. Forrester analysts cite a number of reasons for impending price drops on "enterprise 2.0" tools like software and servers for blogs, wikis, and social networks, but they conclude that only mashup tools are likely to become more valuable.

Three specific reasons are cited for the price drops: commoditization, bundling, and subsumption. Increased competition and slowing innovation means that there is less differentiation between blogging solutions. Further, many vendors, from Microsoft to Six Apart, now offer a complete, enterprise-oriented suites that bundle a mature set of essential tools, which drives down prices for individual tools and specialized solutions ...

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