See this story on Joe Kraus, co-founder of Excite in Business 2.0. Look the economics today compared to just 7-8 years ago. Intel based hardware, open source, global labor, search based marketing, (and likely some software as a service). He says from idea to launch cost him $ 3 m at Excite, and only $ 100K on his new venture Jotspot. Wow, even if the ratio was 3 to 1 rather than 30 to 1, it would be impressive.
I am even more convinced the bigger software and services vendors are Killing the Golden Goose.