This chapter discusses the Internet phenomenon known as Web 2.0. It explores Internet use, Internet users, and the continuous improvements being made to the Internet. The purpose of this chapter is to explain the impact that social networking has on the modern enterprise; particularly, when it comes to collaboration and knowledge sharing. The growth trajectory of Web 2.0 software such as social networking, blogs, tags, RSS feeds, wikis, YouTube videos, and widgets are presented, and each component is outlined in detail. Each application is also applied to a practical business setting. The benefits and challenges of each application are discussed, and examples of organizations that are implementing Web 2.0 strategies are presented. Some limitations and concerns of Web 2.0 are discussed. The chapter concludes with an examination of the implications of Web 2.0 on companies and their business and marketing strategies.