Panelists also pondered business models for new applications, debating subscription, licensing and advertising models.

Until a year ago, there was no indication customers would support subscription models, SAP's Nolan said. But now, a software company deploying an actual licensing model will have tough time getting funding, he said.

An audience member said Microsoft's Office package will be hurt by Web 2.0. While a lot of customers in places such as Asia use Office without paying Microsoft anything, companies such as Zimbra will enable them to use what Microsoft Office provides but in a much more legal way, the audience member said.

Zimbra provides open source technology for messaging and collaboration.