What is Enterprise 2.0?  Is it Web 2.0 for business? Is it open source, SOA, SaaS?

It would be tempting to write off "Enterprise 2.0" as just another software industry buzzword, but that would be a mistake. M.R. Rangaswami, founder of the Sand Hill Group, has posted an excellent discussion on this topic at SandHill.com. He explains that Enterprise 2.0 is more than just the application of Web 2.0 technologies in the enterprise. It is "the synergy of a new set of technologies, development models and delivery methods that are used to develop business software and deliver it to users."

What does that mean? It means that new technologies -- open source software, SOA/Web services (AJAX, RSS, blogs, wikis, tagging, social networking, etc.) and Web 2.0 – will be combined with legacy and proprietary systems as it makes sense. It means that companies are adopting development models in whatever combination is most practical – from offshore outsourcing to in-house development to co-development. And it means that embracing new delivery methods including on-demand and software as a service, combined with traditional licensing models where that makes sense.

Using the right combinations of technology, development models and delivery methods allow companies to create software that's more flexible, simpler and more lightweight than traditional enterprise applications.

Unfortunately, many organizations using traditional enterprise apps have a ton of necessary structure and hierarchy that can discourage innovation. Companies like Entercoms can bring Web 2.0 technologies and Enterprise 2.0 approaches, helping these companies gain new capabilities quickly with very low risk and investment.