Many companies want to execute a Web services program, but a lot of those companies are not taking the proper steps for success. By 2007, enterprises will spend nearly $1 billion on software licenses for Web services provider platforms that were unnecessary because they lacked an overall Web services implementation strategy, according to Gartner, Inc.

"'Now is the time for enterprises to take stock of what is available, or will be shortly, and start to experiment with Web services,'" said Larry Perlstein, managing vice president in Gartner research. "'Enterprises must be careful to avoid expecting too much from any single implementation, and should balance expectations against real capabilities.'"

"'Leading edge enterprises are rapidly finding out where Web services are of most value, and the answer is 'not everywhere,'" Perlstein said. "'Traditional integration mechanisms will continue to play an important role well into the future. So our advice is to pick your battles carefully.'"

Source: "Gartner Says Many Web Services Initiatives Risk Failure Because Enterprises Have Not Established Thorough Web Services Implementation Strategies," July 28, 2003

"'These survey results show the level of commitment that organizations have toward their Web services development initiatives,'" said Nicole Latimer, industry analyst for Gartner. "'For these organizations, Web services development projects are at the top of the list of company priorities and is one of the last budgets to be raided when budget cuts are made.'"

"'To take part in the Web services 'wave,' software vendors and system integrators must communicate a clear, concise, cost-saving message to potential customers,'" said Latimer. "'Each vendor must tell a clear, distinct story about how Web services will benefit enterprises and how Web services will evolve to transform their businesses.'"

Source: "Gartner Survey Shows Despite U.S. Economic Slowdown Companies Continuing Web Services Development," July 23, 2003

The photography industry has received a boost by the success of digital cameras. However, there is no common mechanism for transferring digital images or order and commerce information. The photography industry should look at Web services as a solution to help solve interoperability issues around printing services, according to Gartner, Inc.

Margins on digital cameras are slim, with profits coming after the sale from downstream services, such as photo printing and the supply revenue that it generates. Camera companies are trying to lock in those profits by creating their own online directories. Although many camera manufacturers have alliances with online photo services, each brand is technologically inconsistent, and limited interoperability is possible from one brand to another.

"'This lack of interoperability has prevented many photo shops and other businesses from cashing in on the digital photo printing opportunity,'" said David Smith, vice president and Gartner fellow in Gartner Research.

"'Web services, such as UDDI, enable businesses to reduce the cost of integration,'" Smith said. "'Companies can benefit from implementing service-oriented architectures to provide a platform for innovation and lessen their need to focus on mundane IT tasks. Companies should begin to evaluate the role UDDI may play in their businesses and should consider becoming active in relevant standards activities, which can help further business goals.'"

Source: "Gartner Says Web Services Will Enable Greater Success for Digital Photography Printing Services," July 22, 2003

As systems integrators plan to build Web services delivery capabilities in the next 12 months, Microsoft.Net, IBM WebSphere, and Oracle are the three leading Web services products they plan to support, according to a recent survey by Dataquest Inc., a unit of Gartner, Inc.

"'There is a proliferation of Web services products being used in the systems integration channel. However, there is an emerging distinction between the top three or four products that systems integrators will target for skills investment, and those Web services products they will use on an opportunistic basis at a client's request,'" said Michele Cantara, principal analyst for Gartner Dataquest's IT Services group.

In September 2002, Gartner Dataquest completed an Internet survey of 44 consulting and systems integration vendors in North America. "'According to our recent survey, Microsoft .Net was targeted by 58 percent of system integrators as one of the top three Web services products to ramp up delivery capability,'" Cantara said. "'Forty percent selected IBM Websphere, and 31 percent cited Oracle as one of their top three Web services products for capability investment.'"

"'While larger companies tended to have established a Web services platform of choice, smaller companies were still undecided. This shows that the systems integrator does not always dictate the choice of Web services platforms, and that Web services software vendors that are not among the chosen few should look at the smaller, undecided companies where they are more likely to find opportunity for their product,'" said Joanne Correia, vice president for Gartner Dataquest's Software Industry Research group.

Source: "Gartner Dataquest Survey Identifies the Leading Web Services Products that Systems Integrators Plan to Support in 2003," February 5, 2003

Web services have begun to infiltrate enterprise IT projects, and even cautious companies will need to begin Web services pilot programs in 2003, according to Gartner, Inc.

"'As companies begin the early implementation of Web services, the versatility of the technology is becoming increasingly clear,' said Whit Andrews, research director for Gartner. 'Web services is fulfilling its potential as low-risk, high-utility data integration catalysts, but it is also emerging in unusual, visionary projects.' 'Few enterprises should base a costly, strategic overhaul of mission-critical applications for 2004 or earlier on Web services,' Andrews said. 'However, companies whose IT staffs intend to embrace robust new programming models should begin to experiment with Web services now, developing pilots for deployment no later than 2003.'"

One major trend Gartner has recognized through monitoring the companies is that enterprises on the whole are not engaging in projects that require substantial security.

Source : "Gartner Says 2003 is the Year for Even Cautious Enterprises to Begin Web Services Pilot Programs," September 17, 2002

"With the developments of Web services and peer-to-peer (P2P) technologies, enterprises have an opportunity to combine those technologies to increase efficiencies, according to Gartner, Inc. Gartner analysts have developed an implementation model called the service station, which leverages some of the best features of the new technologies. The service station establishes a model for accessing data through Web services and P2P computing."

"Service station is defined as a PC or network appliance that is used to publish individual files and data as Web services in a P2P architecture. Although the service station is derived from concepts that have been available for years, the advent of Web services and the interest in P2P models have made the service station a timely concept for both strategic and opportunistic applications, according to Gartner."

"'The service station will do for corporate file sharing what Napster did for music. It will make it easy to get what you want when you want it,' said Plummer."

"Web services will capture substantial attention in 2002, and by 2004 Web services will dominate deployment of new application solutions for Fortune 2000 companies, according to Gartner, Inc."

"Gartner analysts said 2002 is the year companies need to start putting together teams of developers who will become well seasoned to lead bigger and more valuable Web services efforts later."

"Web services are beginning to become part of most major vendors' software architectures - a checkmark item to include in their technology infrastructure strategies. By 2003, approximately 80 percent of all platform vendors will support Web services architectures, which will represent the next generation of platform middleware."

Source: "Gartner Says Web Services Will Dominate Deployment of New Application Solutions for Fortune 2000 Companies by 2004," January 14, 2002