From Tim O’Reilly, quoted in the NY Times this past Sunday:
Popfly shows me that Microsoft still thinks this is all about software, rather than about accumulating data via network effects, which to me is the core of Web 2.0…They are using Popfly to push Silverlight, rather than really trying to get into the mashup game.
(emphasis mine). I’m not sure Tim meant his quote in the way I took it — he’s talking about mashups — but he hit the nail on the head as far as I’m concerned.
(h/t Jesse Liberty)