Desktop Returns, On The Web Of Course

No longer spooked by Microsoft, startup investors are backing desktop-software startups again — but this time, the desktop’s on the Web. You can read rest of my story on Business 2.0/CNN Money website.

The new wave of investment is driven by the convergence of three major trends. First, broadband is spreading everywhere. Second, open-source programming tools are widely available and improving in quality. And third, technologies are emerging that make Web-based software as graphical and interactive as desktop applications, like Ajax (asynchronous JavaScript and XML) and Adobe’s Flash.

As part of the story, there is scoop on two new start-ups, who are using Web 2.0 technologies to create brand new opportunities.

* Hive7, a startup launching today, is building virtual-world environment — similar to the ones World of Warcraft and Everquest gamers spend hours in — within a browser. * Fabrik, is offering an online file-storage service that offers a click-and-drag graphical interface like Windows Explorer or Mac OS X’s Finder for navigating through your files. * Also included in the story is Goowy, which just announced that it will add a new I GB storage and IM functionality. (I have been using the alpha product.)

Check out my detailed posts (with screenshots) on Hive7 and Fabrik.