Bottom line, is Amazon has pretty much accepted that it’s not going to be able to compete with the likes of Google, Microsoft and Yahoo on a bunch of this stuff. It’s core business is great, but it doesn’t give good leverage into other portal services so it’s setting itself up as essentially a Web 2.0 wholesaler, selling storage, bandwidth, access to a search repository, etc. It’s betting that it can provide the platform for innovation that somewhere out there, there are people with the ideas and talent who can come up game-changing innovation if only they were given the chance.
Where else can it go? For starters, let’s build an open technorati-style service but open the database up to anyone who wants to rip into it. That could be the single, most important disruptive event for the blogosphere ever. Imagine any developer who wants to slice and dice up the blogosphere into which ever form they want, without having to build a whole, great, big web-scraping, RSS-sucking, storage, processing and bandwidth-intensive back-end. Stand back and watch the innovation fly then! Watch the edge economics start to take hold.
How about it Amazon?