At What Scale Can Web Services Survive?

January 30, 2009 · · Posted by Jordan Frank

One more data point in line of my Whither Web 2.0 Social Networking Discussion which questions the revenue models of web services (with web social networking as a focal point): An on-line service the scale and scope of Microsoft's Online Services is running into red ink of proportional scale. It lost $471 Million per last quarter. The clear and present issue is not whether a profit may be turned at some even-large scale, but what will change about the business model and how will that affect users?

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