The research firm Forrester has just analysed seven Web 2.0 categories, namely mashups, podcasting, blogs, RSS, widgets, wikis and social networking. Of these, the latter (social networks), according to the research firm’s new report, will draw the biggest investment. Even that will be dwarfed by the huge revenue flows the software industry commands.

According to analysts, advertising revenue has been rather hard to come by with even websites like Facebook finding it tough to monetise their very high volumes of traffic.
Firms are now trying to look over their shoulder to the business market wherein even revenues of £25 per user monthly seem ‘increasingly appealing’.

Analysts also point out that there will be a saturation point and then investment will start slowing down as Web 2.0 applications tend to become increasingly prevalent and get absorbed into collaborative software packages.

Meanwhile, the world of business will get to witness what the Web 2.0 world has on offer. Vendors unveil a new range of products, applications and services during the conference in San Francisco, showcasing the latest in blogging software, cloud computing, mobile technology and rich media applications.