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Web Services: Floor Wax or Dessert Topping?
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The Opportunities
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The vendor community with its intellectual capital, strategic visionaries, R&D resources, and marketing machines are busy working on their strategies, positioning, product road maps and alliance strategies. The VC community is also actively looking for the next great technology to create a disruption in the market to capitalize on and build sustainable businesses. The immediate impact on software vendors when these major trends arise is it drives every supplier to sit down and figure out (a) how to position itself vis-à-vis Web Services, (b) the scope of the research and the development investment required to bring its own Web Services-based offering to market, and (c) when to time the product launch and roll-out. The resulting false starts, failures and apparent successes will all be lessons learned for those that follow, helping to accelerate the market towards future innovations.

We expect that the implementation of Web Service-based solutions will occur at different rates for different vendors and different buyers - depending on the level of criticality of the business need they address and the importance of Web Services to addressing the need. We expect the revenue opportunities for vendors to map the natural evolution of technology adoption. Historically, the first people to make some money are those involved in creating the enabling technology itself. But ultimately, the big money will be made by people who leverage the technology to solve problems that transcend the technology, either by improving applications and business processes that exist, or by seeing the opportunity to create something of value that did not exist before. Our crystal ball tells us that revenue associated with Web Services will flow to participating companies in roughly the following order:

- Phase I: Infrastructure
- Phase II: EAI Integration
- Phase III: B2B and SCM Applications
- Phase IV: Enterprise Applications

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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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