Welcome to my new blog site.  Hopefully my old entries will be migrated to this new site in January.  For the better part of December I will be silent visiting customers, then family, and finally friends.

Happy New Years to all!

I had an email come across my desk last week asking about Web services business models.  What is a Web service business model?  It felt like a rememberance of .bomb past.  If you have a technology, naturally a business model must just miraculously spring up around it...

eTrade is a successful online brokerage firm.   eTrade's business model was not a result of the Internet; however, the Internet enabled eTrade to gain ground in a market that was already mature.  Established brokerage firms did not move as quickly to the Internet thereby giving eTrade a competitive edge in a new market segment, online brokerage.

I believe that enabling technology can facilitate new market segments.  Web services are enabling companies to extend their business models because the technology lowers the barrier to entry for new service creation and the potential for service outsourcing.

What are some of the killer new services that Web services are enabling?  Some key areas I have seen numerous case studies on are for data validation and cleansing, payment processing, sharing of financial data (stocks, financial reports, etc.), fraud analysis, data warehousing, location and geographic utilities, data reporting (census, taxes, etc), and much more.  Can the need for these services result in potentially new business opportunities?  Absolutely!

Who will own the market segments for services provided?  Will it be existing companies that play in the existing market segments, companies that jump on the Web services bandwagon early, or new startups that specialize in service orientation from day 1?

Web services can be argued to be revolutionary or evolutionary in nature.  The Internet revolutioninzed consumer behavior towards banking, retail purchasing, dating, and getting rid of old junk in the house.   This resulted in a slew of new companies that are still listed on the NASDAQ post .bomb.

It will be interesting to see in 5 years time what companies we can take for granted that use Web services technology as their primary enabling technology.