The NYTimes interviews leading Silicon Valley VCs and finds that while Web 2.0 enthusiasm is waning, interest in SaaS Enterprise applications is growing.

Instead, venture capitalists will invest in open-source software, Web-based software, Internet-based cloud computing and virtualization software that lets companies use less hardware to run applications. “Oracle, Microsoft and all of that will shift to the cloud. It will be a transformational mega-shift in technology,” Mr. Stalder said.

Read more, and listen to the interview with Dana Stalder of Matrix Partners (excepted above) and 5 other VCs  here.