O’Reilly definition of Web 2.0 is Web 2.0 is the business revolution in the computer industry caused by the move to the internet as platform, and an attempt to understand the rules for success on that new platform. Chief among those rules is this: Build applications that harness network effects to get better the more people use them. There are some rules to remember when defining Web 2.0 which is do not treat software as an artifact, but as a process of engagement with your users, open your data and services for re-use by others, and re-use the data and services of others whenever possible, do not think of applications that reside on either client or server, but build applications that reside in the space between devices. "Defining" a business model transition is always hard.
http://radar.oreilly.com/archives/2006/12/web_20_compact.html
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