Ad-Supported Services? Not so far fetched...

Implications: If search & email can be ad supported business models, then why can't other services or software as it moves from desktop to the Internet?

Analysis: Search & email are the two most used functions of the Internet.  Ironically, they're both ad supported - free to everyone in exchange for ads and a bit of data.  Google clearly sees this as their opportunity with their purchases of word processing & spreadsheet developers, and the evolution of products like Gmail.  But the future will be more about portability and accessibility, which leads me right to things like Google Gadgets and Google Phone.  Two products that will enable ad-supported content to become portable online from the primary dot-com location to properties like Facebook, or simply free phone calls in exchange for ads.  Microsoft and Adobe are trying more to play catch up in some areas and get ahead in others.  Photoshop needs to be free to compete with basic Apple photo editing software as they continue to claim more market share in the PC world.  And Microsoft is losing to Google with innovation that started with search and has now moved into everything else.

But the people looking for free stuff are those either looking to save a buck or two (like a startup) or has no need for professional services that come with a premium price.  In my office, I can't imagine having data that's not controlled by our network & IT department in some way.  It's this issue of control that will "limit" the scale in the next 10 years of this marketplace, even though it satisfies some consumer needs.  More importantly, if I buy a PC that has the upgraded software bundled into it, which replaced my old PC, then why would I suddenly use an online service unless I was forced to?  Consumers don't adapt easily to changes in technology and have a raw fear of losing information to hackers, pirates and any other description for people who will steal your identity.

So while there's a market for these products that come without customer service, it will be slow to grow and evolve.