Gartner: Enterprises poised for Web services

Web services will become a viable option for enterprises looking to gain access to software and business services, according to research released this week by Gartner.

The analyst firm defines Web services as software components that interact with one another and use standard Internet technologies such as XML, Simple Object Access Protocol (SOAP) and Universal Description, Discovery and Integration (UDDI) to build connections between systems. UDDI allows e-businesses to share a common platform for providing information on their companies and locate partners or customers. SOAP transfers XML-formatted messages from one business application to another over the Web.

Through the second half of 2002, 75% of enterprises with greater than $100 million in revenue will periodically interact with Web services, according to Gartner. Through the first half of 2003, 50% of enterprises with less than $100 million in revenue will periodically interact with Web services.

Software components such as toolkits and add-ons, excluding system integration, consulting and professional services, will be a $1.7-billion market by 2003.

Web services have received a big push from the likes of Microsoft, Sun Microsystems, IBM and BEA Systems, which all in recent months have launched their strategies.

Although Gartner is bullish that enterprises will implement web services, end-users will be slow to ramp up at first.

"It's an area of confusion for our clients," says Neil MacDonald, an analyst at Gartner. "Web services have great potential, but it will be slow gaining traction." Part of the problem stems from vendors having difficulty articulating what Web services are and why customers should care.

"They're reluctant to deploy technology for technology sake," MacDonald says, "[customers] are passed the point. They got on the Web for e-business and they likely got burned once before when they fell for the hype."

David Smith, another analyst at Gartner, says insurance companies, high-tech manufacturers and dot-coms will be among the early adopters of Web services.