Globe and Mail
Tuesday, June 1,
By DAWN KAWAMOTO
Staff Writer, CNET
Spending on Web services
software is expected to rise tenfold to $11-billion (U.S.)
worldwide in 2008, as adoption of the technology moves from
large corporations to midsize and small companies, according
to a report released Tuesday by IDC.
The familiar urge
to cut costs and address integration problems will drive the
increase, according to the report. However, adoption of the
software to create a services-oriented architecture has
yet to really take off.
"To date, companies
have moved cautiously, but by the time 2005 and 2006 hit, it
will really ramp up," said Sandra Rogers, IDC's Web services
software and integration director. "Right now, large,
high-end companies have adopted the technology, but
it will start to filter into the mainstream."
Many companies are
still assessing when and how to use Web services. The standards-based
Internet middleware lets software components — such as
business applications, databases and security technologies — share
information with greater ease. As companies redesign their
technology foundation to a services-oriented architecture,
they want to improve the interoperability of their technology.
"A lot of companies
want to extend their existing systems," Ms. Rogers said.
For example, a company
may want to consolidate multiple versions of its order entry
screen to a single screen integrated with other Web-based
systems. A company may use Web services software to help extract
information from legacy systems to transfer into new systems.
Last year, spending
on Web services software stood at $1.1-billion worldwide,
according to the report. IDC expects it to reach $4.9-billion
by late 2005 and climb to $11-billion by 2008.
IDC expects the penetration
rate of large, North American companies using some level of
Web services technology to escalate greatly over the next six
years. About 97 per cent of large North American companies
will have adopted some level of Web services technology by
2010, compared with 14 per cent anticipated by the end of this
year, Ms. Rogers predicted.
the end goal is to repurpose the information and simplify the
environment," Rogers said. The stumbling block many smaller
firms are facing is how to control various levels of information
access — especially for outside parties — as data
moves more freely among systems. "That is why companies
are still moving cautiously. Right now, third parties are accessing
things (only) in a trusted environment."