It's possible, and indeed some institutions (e.g. Governmental) have a near monopoly on the services they provide. This makes it difficult for a random collaborative group to simply walk in and start replacing various functions without explicit cooperation from the institution. The collaborative group has a harder task to prove their value - they can't just set up shop as with, say, Wikipedia vs. Encyclopedia Britannica.
In fact, I expect some of the most interesting successes stories we'll be seeing will be from neither entirely institutional-based or collaborative-based organisations, but from the hybrids. It's a new mutation in the organisational gene-pool, and it should be as interesting as it is unpredictable.
The TED talk video is worth a watch. He ties everything into a narrative about power laws which is fascinating, but which I had to edit out of the extract above, rather than reproduce the entire transcript.