Watch Out Web 2.0: Here Comes Aggregation

Includes: GOOG, YHOO
by: Aaron Krawitz

The biggest up and coming trend for Web 3.0 is the theme of aggregation. By contrast Web 2.0 could be summed up as being all about collaboration. We all could name countless collaboration-centric goliaths that rose up from the Web 2.0 era: Facebook, YouTube, MySpace, Wikipedia, Prosper etc.

Where will profit lie in the forthcoming Web 3.0 period? The answer is in web-based software that can aggregate this web 2.0 data in a very tailored way. The classic example is whether all the Citysearch type ratings agencies could be combined. This is starting to sound more like search, isn’t it? But this type of tailored aggregation may not be Google (NASDAQ:GOOG), Yahoo (NASDAQ:YHOO), or Ask’s forte.

Look at, a tech news aggregator (similar to Seeking Alpha for the genre), and, a well designed email application aggregator. Will Google try to save money and create these Web 3.0 applications, or will it just try to by them at a huge premium like it did with Facebook? Probably the latter. But either way, understanding Web 3.0 aggregation offers us a glimpse into the future and lets us know what to look for when searching for the next big buyout.