The Library 2.0 concept defines the user oriented implementation of Web 2.0 technologies in libraries. The use of the latter for business oriented purposes in libraries is yet to reach its full potential, and is developing as a part of the Enterprise 2.0 concept. The paper presents a theoretical basis for both concepts, as well as some of the results of the survey of Web 2.0 implementation in Serbian libraries. Application of technological and social innovations described by Library 2.0 and Enterprise 2.0 concepts is a part of the process of virtualization of library operations. The paper highlights the urgent need for the creation of a new collaboration paradigm for libraries, one that will not only include virtual collaboration with patrons and among employees but also the cooperation within physical space of the library. The importance of the convergence of virtual and physical operations of a library is stressed, and the possibilities for improvement of library operations in the physical world brought about by extensive social innovations originating in the virtual world are presented. In order to further illustrate these aspects the paper introduces concepts of the Solitary Reader and Reading 2.0 and discusses collaboration in the reading process.