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Ancillary
Business Opportunities
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The evolution of Web Services will create additional opportunities
for ancillary businesses and models that can leverage Web Services
technology for profit. Potentially, the biggest winners will be SIs.
These companies are not traditional early adopters, as they prefer
to work with large, established vendors that provide them with the
necessary technology, training and support - and credibility with
their customers. However, as enterprise application integration, B2B
commerce and supply chain management are the prime areas where Web
Services technology will be utilized, and these are the "big
ticket" projects for SIs, we expect them to reap the rewards
from Web Services in the long run. We understand how slowed IT spending
has hit the large integrators hard and they are less likely now to
invest the time and effort in new solutions. But SIs need to evaluate
the technology and align with vendors today to invest in tomorrow
and they could end up with the brass ring. Mid-tier SIs that use Web
Services for discrete projects will rack up some early wins, achieve
market leadership (particularly in vertical markets) and make some
serious money.
Another opportunity to leverage Web Services exists with the oft-maligned
Application Service Providers (ASPs). Using Web Services, ASPs can
improve the performance of their applications by having critical
components of it operate at the customer site temporarily as the
need arises. Yet they can maintain complete control over the application
architecture, performance, and security. This could reduce the costs
of application delivery as well as improve performance, which may
help ASPs capture customers and make a profit on each one. Since
the ASPs can be in total control of the application architecture
and deployment, they can deploy Web Services principles and techniques
immediately, and not have to worry about having some of the standards
and "platform wars" settle down, like the EAI and B2B
vendors must. We do not expect this opportunity to be as large or
as likely as the ones we discussed in detail above, but it, like
brokering services, should be addressed in this overview of Web
Services.
Brokering services are subscription based offerings that provide
management services for composite applets. The purpose of this new
ASP model is to reduce the cost and complexity of managing interactions
between partners and customers. These new service companies would
offer a wide range of applications and platforms to provide more
secure, scalable, and reliable communications across partner and
supplier organizations and with customers. They offer companies
a low risk entry into the Web Services arena while the ASP provides
control, data transformation, visibility and management of the interactions
and service delivery. We recognize this is perhaps the most futuristic
view of Web Services adoption as infrastructure and integration
technology must be in place and current UDDI standards need a lot
more work. Market adoption of these new models is expected to be
36 months out and we expect several iterations before any real winners
emerge.
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Barbara Angius Saxby (barbara@accelentmarketing.com)
founded Accelent (www.accelentmarketing.com)
to help software startups accelerate marketing strategies, planning,
and execution. She specializes in positioning and launching enterprise
infrastructure and application companies. Barbara is a senior marketing
executive with over 20 years experience in strategic marketing management
and has done extensive work internationally.
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