When perpetual beta he was tryng to say (I think) that the classic software release cycle is becoming too slow and self-focused for modern companies and that companies should never stop to enhance their applications and services with help from the community. This is linked to the idea that the software is not a product, but a service. Who wants a service that becomes outdated in a few months? Companies should improve their services constantly and this means release new functionalities every few weeks. Now, this gives a big competitive advantage to web applications.
- users do not have to download the new version to get the new functionality (it's simply there, that's the new lime green button)
- companies do not have to maintain backward compatibility (no one will never run an obsolete version)
- users are more involved in development, and can suggest new features to be added (you can really think to write to the Web 2.0 it's like LEGO.
You have small, simple and colorful pieces, and you build platforms and services with this pieces. You can build something that changes every day, but the small pieces you use must be solid. Small and solid pieces are what give web2.0 companies the capability of fast response and fitness for their niche. If these small pieces are released too early they won't be solid enough to build valid services. If you are tempted to release an api or a feature that you feel is not solid, maybe you've just found something you can split into smaller pieces, and release each one separately.
Some companies are inclined to view the users as free debuggers, while they are far more than this: users are the ultimate resource to discover the best possible way to deliver a service, because only users can tell you how to link the LEGO pieces.
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