Chrismas is over, and it's officially 2008.  Wow, this was really a fast one for me.  Between getting married, selling Latigent to Cisco, moving to Boston, and getting acclimated to life at Cisco, I barely time to stop and breath.  But I had a couple of days to relax and collect my thoughts over Christmas and, as I like to do every year, I've put together a list of my predictions for 2008.  So, without further ado, my predictions for 2008:

1. The recession (that we are already in the beginning stages of if you look at the data instead of listening to the pump monkeys on CNBC) will make 2008 a slow and cautious year.  Budgets will shrink and new projects will be put on standby as the US and world economies slow as a result of the global credit market going into further gridlock.
2. After a horrific year in 2007 the dollar will rebound a bit, making outsourcing a hot ticket item once again (as it gets cheaper).  This will happen because the rest of the world will get hit even harder than we will by the recession.  US companies that are counting on international business to prop up their bottom lines will be severely disappointed as exports become more expensive to foreign customers and international budgets shrink as well.  Many (more) CEO’s will lose their jobs.
3. On the bright side, the Internet’s effect on politics will be one of the biggest stories of the year.  If you thought Howard Dean was an interesting story because of the way he used the Internet to coordinate and attract support, well, you ain’t seen nothing yet.  Ron Paul’s supporters have coordinated themselves to the tune of over $6 million in 24 hours, and this will continue to be an interesting story to watch throughout the presidential race.  The floodgates are open and Old Media is no longer the gatekeeper.
4. Google will attempt to integrate its Orkut social network into its iGoogle/Google Docs businesses.  Last year I predicted that MySpace would become un-cool and Orkut would take its place.  Well, I was right on half of that--in 2007 FaceBook became the new hip online hangout, but Orkut only gained popularity overseas.  Google recently announced that they’re fleshing out the profile aspect of their Google accounts, and it only makes sense to me that they will eventually integrate their Orkut social network with their Google accounts/iGoogle/Google Docs products.
5. Online identity will become a prominent issue, and OpenID will benefit.  Will 2008 be the year when we see the first high-profile online identity theft?  I don’t know, but I know that it will happen sometime soon.  As soon as someone famous loses control of their online identity you will see this become a VERY hot issue.  It may be the first time you see a search engine optimization specialist interviewed on the evening news :)
6. FaceBook will *start* to lose market share to emerging distributed social networks that will be born in 2008.  2007 was the year of FaceBook, primarily because they started opening up their platform and this created a flood of interesting applications.  But there’s only so far a fundamentally closed system can open up before it risks letting outsiders cannibalize its revenue stream.  I think FaceBook has already reached that point, and that opens up the door for more open systems to come in and gain market share.  OpenSocial is a step in the right direction, and the work being done around personal data portability is only going accelerate this shift.
7. Privacy and personal data ownership will be a critical issue for Web-based businesses.  As businesses start hitting the limit of what a strict advertising-based revenue model will allow (see above), they will test the limits of their users’ patience by mining user data and selling that data.  They will push and push until they find the line that they cannot cross.  FaceBook Beacon was just the first example of this phenomenon.  Either businesses will hold their users’ interests above all else, including profit, or they will slowly compromise their users in order to extract more money from them.  If history is any indication—and it usually is—we can expect them to compromise their users’ privacy.  This will bring the first users to distributed social networks.
8. Google will attempt to diversify its revenue streams.  You can already see this beginning with Google’s push into content with its Google Knol product.  Right now Google is a one-trick pony—it makes revenue from advertising.  It wants more, obviously, such as ALL of the advertising revenue on the content side.  In order to justify its insane stock valuation it will need to come up with a ways to collect a LOT more revenue.  The trick here is going to be coming up with new revenue streams that don’t cannibalize and piss off the ecosystem that has developed around it.  If Google starts competing with the content producers, content producers will start loving and promoting somebody else.  Once that happens, Google is no longer the unquestioned King of Search--content producers will start optimizing their sites for more profitable search engines, and the monopoly will start to crumble.
9. Companies with no sustainable long-term revenue streams (ie, companies whose main attraction is becoming commoditized and turned into features on other sites) will be sold while they can still get big money for them (they had better move fast, before belts start tightening).  This includes Twitter and Digg.  Rupert Murdoch may be tempted to add to his collection of terminally ill businesses (see:  MySpace, Wall Street Journal)
10. Mobile applications will become increasingly Web-based, perhaps hooking into OpenSocial-type API’s provided on the client device to offer a more seamless experience.  The iPhone and iPod Touch (one of the predictions I hit on last year) really opened the floodgates here as they’ve shown that Web applications can actually be usable on a mobile device.  WAP, R.I.P.
11. Cloud/grid computing will continue to develop and gain market share.  If Amazon can flesh out its SimpleDB service to be a bit more relational and analytics friendly it could put a serious dent in the small business database server market.  Experience with utility computing will be one of the hottest resume bullet points of 2008 (and every year thereafter).
12. You will see more content producers choosing to bypass distribution channels and take their products directly to the consumers.  I predicted last year that the NFL network would start doing this, and they have.  They’re now showing exclusive games on their network, and also streaming games off of their Web site.  Look for more high-profile consumer entertainment products to follow suit as trailblazers like the NFL Network show that you don’t need an expensive distribution channel to make money.

That’s it for this year--I feel pretty good about these predictions actually coming to fruition in 2008.  Whatever happens, it should be an incredibly interesting year, it feels like we’re on the cusp of some revolutionary new developments in the personal online space in particular.  As long as the recession doesn’t derail everything, that is :)

On the resolution side of things, I started a low-carb diet today to drop the Christmas poundage, I'm picking up last year's resolution to become ambidextrous, and I'm also resolving to blog more frequently.  Until Christmas I was of the impression that 2008 couldn't POSSIBLY be as eventful for me as 2007, until we found out at my wife Jessica is pregnant, so there goes that idea.  But, I'm still shooting for a good success ratio!