You might have a better chance of succeeding within a company though, particularly a company with massive computational resources and accumulated IP. Scalability would be much easier to deal with. There's also the issue with name recognition. Having your service on something like Google Labs would give it lots of publicity. Finally, your service could be added as a feature to a popular service such as gmail say.
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Makes me think of the issues PG raised in "The Power of The Marginal". I think when you're an outsider it seems like those things are huge advantages, but when you have them they feel more like baggage.