VCs have put tons of cash into Web 2.0 applications targeted at big businesses, assuming that these companies would be the heir to the legacy of enterprise software.
But big company executives haven’t been satisfied with what they’ve been getting from these companies. In fact, only about one in five leading executives is actually pleased with their Web 2.0-enabled enterprise applications, according to a survey done by McKinsey Consulting. Another 7% yanked those same applications out of their offices after less than a year, the report says.
I’m not sure what VCs should make of this. Is Enterprise 2.0 DOA? Perhaps not. I can only imagine what the same executives might have said about their happiness with Oracle databases or the Microsoft Office Suite.
It may not matter what people think about the service they get from big companies so long as they’re willing to pay for it–but it’s hardly a luxury that small companies and startups can afford.
Now with a working link: McKinsey Web2.0 Study