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"We probably over-invested in a platform that clearly didn't have the user base," said CTSi CEO Etienne Taylor.

The concept behind SuiteTwo was right, said Forrester Research analyst Oliver Young. Companies are adopting blogs, wikis, enterprise RSS and other Web 2.0 technologies to improve collaboration and communication among their employees, partners and customers. "The market has moved in that direction pretty aggressively," he said.

"The problem with SuiteTwo wasn't the idea. The problem was the execution. They were trying to cobble together products from five or six independent companies, and it never looked like anything more than a bunch of applications that were duck-taped together," Young said.

While SuiteTwo failed to gain traction, vendor partners like NewsGator and Socialtext noticed that demand for a suite like that was real and expanded their own offerings beyond their niche areas to offer more comprehensive collaboration and communication functionality.

Ironically, Intel still seems interested in Enterprise 2.0, judging by a demo of a workplace social-networking system that its CEO, Paul Otellini, gave in November at the Web 2.0 Summit in San Francisco, two years after SuiteTwo's introduction. The demoed system included Web-based enterprise collaboration tools for social networking, blogging, wikis, online meetings and syndicated feeds.