Web services: Ready, steady... wait
Published: 19 Jun 2002 14:28 BST
Technology executives and analysts agree that Web services, a much-hyped new way to build software, can enhance software applications by using the Internet for exchanging data. This allows, for instance, for more flexible systems and better communications with mobile devices.
The problem? "IT people are... confused. There are multiple standards, and the authority is being left to the vendors, who no one trusts," said SoundView Technology Group analyst Kris Tuttle.
The result: Buyers are waiting for additional standards and better compatibility before they commit to large-scale projects.
The Web services concept has been embraced by nearly every software vendor. Camps have formed around two largely incompatible architectures: Microsoft's .Net plan and Sun Microsystems' Java technology, supported by IBM, BEA Systems and other companies. Instead of picking one over the other, most companies are supporting both, said analysts, meaning that compatibility issues will need to be ironed out eventually.
Existing standards, such as Extensible Markup Language (XML) and the Simple Object Access Protocol (SOAP), make up the initial building blocks for Web services that work within companies, and for rudimentary cross-company services. But before more complicated -- and useful -- Web services that span multiple companies and processes can be developed, additional standards need to be worked out.
As a result, distant promises are still outrunning reality.
"A lot of customers are interested in Web services, but the truth about Web services is much less sexy," said John Radko, chief architect for GE Global eXchange Services, a business-to-business exchange and a General Electric subsidiary. "It's the glue that allows you to integrate applications easily."
Much of the infrastructure to guarantee security, reliability and consistency of Web services doesn't yet exist. Other roadblocks to widespread acceptance include a lack of security standards and products, poor understanding of the benefits among top executives, and a lack of internal development skills, according to a survey conducted by Forrester Research.
Add it all up, and it's clear that companies are not doing much more than dabbling in Web services.
"There's a lot more interest than cold, hard cash coming in," said Bernhard Borges, head of PwC Consulting's Advanced Technology Group.
Mike Gilpin, an analyst at Giga Information Group, said the weak economy has curbed any big-ticket IT projects, including those focused on Web services. A recent survey by Gartner and Goldman Sachs predicts anemic IT spending for the remainder of 2002 with fourth-quarter growth of 1.5 percent.
Gilpin predicts spending on Web services will grow gradually, representing roughly 5 percent of software integration spending in 2003 before accelerating.
Likewise, a Forrester Research survey found that 84 percent of 70 top IT executives polled said their spending on Web services-related software and services will increase in 2003.
Still, Tuttle said he expects corporations to hold off spending big bucks on Web services. Why spend the money before you know how the standards will shake out? He said software infrastructure spending is likely to face "more paralysis and delay" as customers hold out to see how Web services develop.
"I don't expect any clarity anytime soon," said Tuttle.
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