Web 2.0 Business Model Problem

TechCrunch » Blog Archive » Basecamp faces competition in free alternative

It only makes sense that someone is trying to build and distribute a free version of Basecamp. That in and of itself is the big problem with web 2.0 businesses that rely on webbased software. Me thinks Adobemedia is watching this all pan out and trying to reorganize its products to be a more secure platform as an alternative to webbased products.