The biggest need web startups fail to address

This has always struck me as blindingly obvious but, since nobody is saying it, perhaps it's not.

The single most important factor which makes me gloss over new web startups and the services that they provide is that there is no option for self-hosting.

Considering how many web 2.0 businesses have gone out of service (I remember an infographic showing something close to half), it is, in my opinion, insane to have a company which relies on one.

It's really simple - just license your code out for people who want to host it themselves. This gives you a passive income stream, which is always great - especially for those slow months. It gives your customers peace of mind because they know that if you go out of business the impact will be minimal.