O'Reilly on Web 2.0 and Cloud Computing

Tim 0'Reilly seems a deeply thoughtful guy to me, so when I came across a post by him on Web 2.0 and Cloud Computing, I of course loved it. http://radar.oreilly.com/2008/10/web-20-and-cloud-computing.html#definitions I like his definitions of the three different types of cloud computing and his suggestion that the next IT giant will be the company that creates a service that best harnesses network effects to get better the more people use it. Its not very clear (to me!) quite what he means by this, but the 64 million dollar question of "where does the value go (and who gets commoditised)?" is a fascinating one!