Will the free ride on the cloud end soon?

Here is a comment on the present down turn in the economy and the web 2.0 resources we have been promoting for education.

Today, I read comments from several venture capitalists (e.g., Ron Conway) as they offered advise to those they support. The comments expressed concern that while the present financial situation did not originate with online apps and services (like the Internet bubble of a few years ago) tight money would eventually impact tech companies hoping to make their mark with Internet services. The advice was to economize.

Of course, those companies that can find a way to make it through the lean times will likely find they have less competition on the other side. It reminds me of the rise of the Bubba Gump shrimp company – this likely makes no sense unless you are fans of Forest Gump.

My concern is that I invest too much time and perhaps resources I have created in an online (probably free) service that has no way to generate funds. The idea that good services will be bought up by Google, Microsoft, etc. or catch the eye of those with venture capital may not hold in the short term. For example, Yahoo, owner of Flickr, fell below $14 today. Time to back up just in case.