IDC has estimated that just 5 percent of U.S. businesses in 2002 had completed a Web services project. But by 2008, the research firm said, 80 percent of firms will have such a project under way.

A Web service is a software system identified by a URI [RFC 2396], whose public interfaces and bindings are defined and described using XML. Its definition can be discovered by other software systems. These systems may then interact with the Web service in a manner prescribed by its definition, using XML based messages conveyed by Internet protocols. Web services perform some impressive functions. In plain English, they allow a company to link its applications with those of its partners, customers and suppliers via the Internet, in much the same way that Web pages are linked together. Therefore, businesses can view and use partners' information as if it were their own. Anticipated revenue potential is substantial, with a US$21 billion boost predicted in the software, services and hardware markets by 2007, according to research firm IDC. For now, the numbers are less eye-popping. IDC has estimated that just 5 percent of U.S. businesses in 2002 had completed a Web services project. But that figure is expected to grow. By 2008, the research firm said, 80 percent of firms will have such a project under way.