Service Oriented Architecture

When constructing code, you can use well understood and documented webservices to implement certain functionality. For example a zip code check is available as a webservice. And in most situations it is cheaper and easier to integrate with such a webservice than to build it yourself. Over time we will see more and more of these services emerge and at the same time these services will provide more functionality. Flickr is now the standard for images and photo exchange. Linkedin.com is announcing webservices API’s for working with the networks with linkedin.com.

An interesting side effect of this trend is that software companies need to bring their products online in order to stay competitive. So rather than placing the burden of running the software on the buying organisation they themselves need to take care of it.

So software companies need to invest in physical things like data centers, networks, storage and machines. And they need to connect with communities and local governments to find places to run their data centers. Their ability to do so effectively is a key strategic advantage for the coming years. Google and Yahoo are clear leaders in this area, they have about 10 years experience in building their physical infrastructure. Talking about barriers to entry in this market.

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