In our previous two issues, we discussed open source and hosted applications as Internet software options that offer companies ways to save money over traditional Windows-based software. In this issue, we conclude our series on these options by discussing web services.

Of the three concepts discussed in the series, web services is probably the hardest to define and the least well understood.

Web services actually combine a number of different technologies and represent more of a concept than a single technology. A web service is defined as ”a software system designed to support interoperable machine to machine interaction over a network.”.

So what exactly does this mean?

Interoperable means that web services allow for the communication of information and the provision of services between disparate computer systems (i.e. different operating systems). Interaction over a network means any network, whether this is a traditional Windows network or the Internet.

At the core of web services is XML, or Extensible Markup Language. XML is essentially a simple, standardized format for presenting structured data. A markup language is defined as a means to present data and additional information about that data. The most well know and widely used example of a markup language is HTML, or HyperText Markup Language. HTML is one of the foundations of the Internet and is the primary programming language for creating web pages. The extensible part of XML means that it allows users to define their own elements in order to define the structure of their own data.

(Although web services do not actually require the Internet, they are considered an Internet technology because they are built using Internet languages and they were developed to facilitate with provision of data and electronic services over the Internet.)

Because XML is a very simple text-based means of presenting data, it can be easily communicated between disparate systems regardless of the nature of the networks or operating systems involved. This interoperability is why XML lies at the core of web services. Web services are essentially XML-based messages that allow for the communication of data between different software systems.

XML and web services can be compared to EDI, or Electronic Data Interchange, a technology which has been around since the early 1980’s. EDI was developed as a set of standards for electronically formatting information found in paper documents and exchanging this information between various trading partners and their computer systems. Much like web services, the goal of EDI was to create standards for data exchange. (For what it’s worth, EDI was also intended to reduce the use of paper documents and help create the paperless office.)

Although EDI became very commonplace and is still largely in use today, it suffers from serious weaknesses. The main problem with EDI is that it is not a simple, rigorous or well-defined format. This has meant that different industries and organizations that utilize EDI have largely defined their EDI file format specifications themselves. This has led to anything but standardization, which has made it very difficult and expensive for companies to implement EDI, especially when dealing with multiple trading partners. The complexity of EDI also requires the participation of other companies and software to facilitate its implementation and execution, only adding to the costs and headaches involved its deployment and operation.

Web services and XML largely eliminate the weaknesses of EDI by creating a much more standardized and predictable means of presenting data. This allows for far more straightforward implementations and allows each provider of a web service to create their own XML specifications without impeding the ability of trading partners to utilize their service.

So how do web services benefit today’s organizations? Web services provide a means for companies to create systems that can effectively interact with other companies and systems in a standardized, cost-effective manner. This ability to provide these services over the Internet means that any partner can tap into these systems regardless of their size and location.

While web services are still largely the domain of large organizations, as they become more predominant and cheaper to implement, they will become an increasing popular way of exchanging data between businesses and their computer systems.


Datapro Technology Solutions is an IT consulting firm that helps small and medium-sized businesses get the most from their investments in technology.

To find out more about the services we provide and how we might be able to help your business, visit our web site at dataproforbusiness.com or give us a call at 416-977-1991.