Web Services

Market Opportunities, Strategies, and Forecasts

2002 to 2007

OPPORTUNITY ABOUNDS

WinterGreen Research, Inc.

Lexington, Massachusetts

www.wintergreenresearch.com

Web Services Market Opportunities, Strategies, and Forecasts, 2002 to 2007

Web Services promise to provide connectivity from distributed platforms and applications over the Internet into existing servers and mainframes. The ability to publish information into an application from the network is an essential aspect of creating telephone numbers for data.

Web services define an entirely new market that does not yet exist by leveraging existing application server, application integration, and enterprise portal product functionality. Web services are used to implement Internet enabled exchanges for every industry. The most traditional view of Web services is that they enable e-business exchanges by publishing services to a directory repository. The difficulty with this is keeping the repository current.

Web services create ways to transmit information back from the field. They relate to transmitting information back to a server. They relate to the ability to automate processes that are not now automated. Field service personnel, sales people, or clinicians frequently gather information in the field that is most useful when inserted into a range of applications. The ability to transmit that information back from the field will leverage Web services capabilities.

Web services at an expected $152 million in 2002 are evolving as a portion of the total enterprise application integration (EAI), application server, and enterprise portal markets. They are expected to reach $3.1 billion by 2007.

To get to this level from a standing start would be impossible. This revenue is realized as part of existing product line revenues. The existing products benefit from being Web services enabled. The Web services capabilities drive sales of existing integration and server products, creating a significant market opportunity. Companies that do not offer Web services capabilities in conjunction with other software will be hampered in the overall integration, application server, and portal business to business markets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Companies Profiled

BEA

Bowstreet

Borland

Cape Clear

Fujitsu

GE Global eXchange Services (GXS)

Hewlett Packard

International Business Machines (IBM)

IONA

Sybase

Tibco Software

TTM

Vitria Technology

webMethods

WebEx Communications

 

 

 

 

 

 

REPORT METHODOLOGY

 

This is the hundred and sixteenth report in a series of market research reports that provide forecasts in communications, telecommunications, the internet, computer, software, and telephone equipment. The project leaders take direct responsibility for writing and preparing each report. They have significant experience preparing industry studies. Forecasts are based on primary research and proprietary data bases. Forecasts reflect analysis of the market trends in the segment and related segments. Unit and dollar shipments are analyzed through consideration of dollar volume of each market participation in the segment. market share analysis includes conversations with key customers of products, industry segment leaders, marketing directors, distributors, leading market participants, and companies seeking to develop measurable market share. Over 200 in depth interviews are conducted for each report with a broad range of key participants and opinion leaders in the market segment.

 

 

 

 

 

 

 

 

 

YOU MUST HAVE THIS STUDY

Web Services Executive Summary

Summary Forecasts Web Services ES-1

Web Services Supplement Basic E-Business Systems ES-3

Promise Of Web Services ES-5

Syndication As A Web Services Business Model ES-5

Web Services Market Description

1.1 Web Services Definition 1-1

1.2 Web Services Architecture 1-3

1.3 Distributed Service Discovery Methods 1-5

1.4 Web Services Positioning 1-6

1.4.1 Business Imperatives 1-8

1.5 E-Business Platforms 1-9

1.5.1 Syndication As a Business Model 1-9

1.5.2 Business Process Management Platforms 1-10

1.5.3 Business Process Use Of Web Services 1-12

1.6 Customer-Centric, Agile Enterprise 1-13

1.7 Managing Transactions in a Distributed Environment 1-14

1.8 Exchanging Information 1-16

1.9 Application Building 1-17

1.10 Software And Platform Interoperability 1-18

1.10.1 Role Of Distributed Transaction Processing 1-18

1.10.2 Transaction-Processing Solution 1-19

1.10.3 Corba Industry Standard For Distributed Objects 1-20

1.10.4 Corba Transaction Service 1-20

1.10.5 Difficulties of Corba 1-21

1.10.6 Distributed Object Computing Model 1-21

1.11 Internet 1-22

1.11.1 Internet Protocol (IP) Mission Critical Functionality 1-23

1.11.2 Web Services Process Management Toolkit 1-24

1.12 E-Services 1-24

1.12.1 E-Services Partnering 1-25

1.12.2 Key Functions Of The Online Store 1-36

Web Services Market Forecasts

2.1 Web Services Supplement Basic E-Business Systems 2-1

2.2 Web Services Market Definition 2-1

2.3 Web Services Platform 2-4

2.3.1 SOAP Role In Distributed Computing Environments 2-5

2.4 Web Services Market Forecasts 2-6

2.4.1 Summary Forecasts Web Services 2-6

2.4.2 Application Server Web Services Forecasts 2-8

2.4.3 Application Integration Web Services Forecasts 2-10

2.4.4 Enterprise Portal Web Services Forecasts 2-13

2.5 Application Server, Application Integration, and Enterprise Portal Market Forecasts 2-14

2.5.1 Application Server Market Forecasts 2-14

2.5.2 Application Server Product Definition 2-15

2.5.3 Market Growth Factors 2-16

2.5.4 Application Segments 2-19

2.5.5 Application Integration Market Forecasts 2-20

2.5.6 Enterprise Portal Market Forecasts 2-21

2.5.7 Portals at the Center of E-Business Strategy 2-22

2.5.8 Enterprise Portal Strategy 2-25

2.5.9 Summary Forecasts Application Server,

2.5.10 Application Integration, and Enterprise Portal Markets 2-26

 

2.6 Web Services Market Participants 2-28

2.6.1 EAI Application Integration Market Shares 2-29

2.6.2 Application Server Market Shares 2-30

2.6.3 Enterprise Portal Market Participants 2-31

2.6.4 BPM Market Participants 2-31

2.6.5 IBM 2-32

2.6.6 BEA Systems 2-33

2.6.7 Tibco 2-34

2.6.8 Vitria 2-35

2.6.9 New Era of Networks / Sybase 2-36

2.6.10 Microsoft 2-36

2.6.11 Microsoft .net 2-37

2.6.12 Microsoft BizTalk Web Services 2-37

2.6.13 Microsoft Support For Creating a Highly Available Web 2-38

2.6.14 Microsoft Component Object Model 2-39

2.6.15 Sun Microsystems Java 2-39

2.6.16 GE Global Exchange Services E-Business Software 2-40

2.6.17 Cape Clear Software 2-40

2.6.18 CapeConnect SOAP 2-41

2.6.19 Scalability 2-42

2.6.20 J2EE Integration 2-42

2.6.21 CORBA Integration 2-43

2.7 Internet Driving Forces 2-43

Web Services Products

3.1 Web Services Product Description 3-1

3.2 IBM Web Services 3-2

3.2.1 IBM Web Services Market Presence 3-6

3.2.2 IBM XML 3-7

3.2.3 IBM Strategy With Respect To Standards 3-8

3.2.4 IBM Support For ebXML 3-9

3.2.5 IBM WebSphere Secure J2EE Applications 3-9

3.2.6 IBM End-To-End Web Services Strategy 3-10

3.2.7 IBM Protection Of Resources 3-11

3.2.8 End-To-End Flow From The Security Viewpoint 3-11

3.2.9 IBM Web Services Security Policy Configuration 3-12

3.2.10 Role Of IBM Mission Critical Middleware Messaging 3-15

3.2.11 IBM Mission-Critical Functionality 3-16

3.2.12 IBM Websphere MQ Messaging Software 3-17

3.2.13 Linking Internal Operations 3-18

3.2.14 IBM Integration Of ERP Applications 3-19

3.2.15 IBM WebSphere Automated Solutions Positioning 3-20

3.2.16 WebSphere Studio Application Developer 3-22

3.2.17 Tivoli Web Services Manager 3-23

3.2.18 Lotus Software Web Services Strategy 3-24

3.3 GE Global eXchange (GXS) Web Services 3-25

3.3.1 GE Global Exchange Services E-Business Software 3-27

3.4 BEA WebLogic Web Services Support For E-Business Platform 3-28

3.4.1 BEA Support For Simple Web Services 3-38

3.4.2 BEA Support For Complex Web Services 3-39

3.4.3 BEA Complex Web Services For Independent Trading Exchanges And Logistics Service 3-43

3.4.4 BEA Complex Web Services Context-Sensitive Transaction Support 3-43

3.4.5 Web Services In BEA WebLogic E-Business Platform 3-45

 

 

 

 

 

3.5 Sybase Web Services 3-46

3.5.1 Sybase / New Era of Networks Integration Package 3-51

3.5.2 Sybase Integration Package / Adapters 3-51

3.5.3 Sybase Adapters for Siebel, PeopleSoft, and SAP R/3 3-53

3.5.4 Sybase Clinical Gateway Solution 3-54

3.5.5 Sybase PowerJ for Tightly Integrated J2EE Development 3-55

3.5.6 Sybase Rules Templates 3-55

3.5.7 Sybase ebXML Interoperability and Collaboration 3-56

3.6 Tibco Software 3-57

3.6.1 TIBCO Information Bus 3-61

3.6.2 Tibco Extensibility 3-61

3.6.3 TIBCO TurboXML 3-63

3.6.4 TIBCO TurboXML Benefits 3-64

3.6.5 TIBCO ActiveExchange Cross-Company Business Processes 3-64

3.7 Vitria Web Services 3-66

3.7.1 Vitria WSDL 3-70

3.7.2 Vitria SOAP 3-70

3.7.3 Vitria UDDI 3-70

3.7.4 Vitria Web Services Promise And Limitations 3-71

3.7.5 Vitria Web Services / Business Process Management 3-71

3.7.6 Vitria Standards Participation 3-72

3.7.7 Vitria BusinessWare 3-73

3.7.8 Vitria ebXML E-Business Solutions 3-73

3.7.9 BusinessWare B2Bi Server 3-74

3.7.10 Vitria EDI 3-75

3.7.11 Managing Collaboration and Interactions 3-75

3.8 IONA Integration Solutions 3-76

3.8.1 Orbix E2A Product Lines 3-87

3.8.2 IONA Orbix E2A Web Services Integration Solutions 3-87

3.8.3 IONA Web Technologies 3-89

3.9 WebMethods Web Services Capabilities 3-89

3.9.1 webMethods Enhancement Of Web Services 3-111

3.9.2 WebMethods Web Service Key Standards 3-112

3.9.3 Benefits of webMethods Web Services Solution 3-112

3.10 Microsoft .net 3-113

3.10.1 Microsoft BizTalk Web Services 3-113

3.10.2 Microsoft Support For Creating a Highly Available Web 3-114

3.10.3 Microsoft Component Object Model 3-115

3.11 Sun Microsystems Java 3-115

3.12 Cape Clear Software 3-116

3.12.1 CapeConnect SOAP 3-117

3.12.2 Scalability 3-118

3.12.3 J2EE Integration 3-118

3.12.4 CORBA Integration 3-119

3.13 Fujitsu Java and Component Application 3-119

3.13.1 Fujitsu INTERSTAGE Application Server 3-120

3.13.2 Web-J Edition (WJ) 3-120

3.13.3 Standard Edition (SE) 3-121

3.13.4 Enterprise Edition (EE) 3-121

3.13.5 INTERSTAGE Application Server Linux-Compatible 3-121

3.13.6 Web Services Technologies 3-122

3.13.7 Load balancing (EE) 3-122

 

Web Services Technology

4.1 SOAP 4-1

4.1.1 SOAP Framework 4-1

4.1.2 Framework For Developing Web Services 4-2

4.1.3 Apache SOAP 4-2

4.1.4 Load balancer with SSL support 4-3

4.1.5 Points Of Failure 4-3

4.1.6 SOAP Limitations 4-4

4.1.7 SOAP Protocol Uses Multi-Step Process 4-5

4.1.8 Framework Benefits 4-5

4.1.9 SOAP Test Strategies 4-5

4.1.10 SOAP Solutions 4-7

 

4.2 WSDL 4-8

4.2.1 WSDL Service Descriptions 4-8

4.3 UDDI Registry 4-9

4.3.1 UDDI Test Registries 4-10

4.3.2 UDDI Distributed Web Service Discovery 4-10

4.3.3 UDDI Consortium 4-12

4.3.4 WS-Inspection Document Extensibility 4-12

4.4 Language XSLT 4-13

4.5 OASIS 4-14

4.6 ebXML 4-15

4.6.1 ebXML and Open Applications Group OAGIS Standards 4-16

4.6.2 EBXML Standard 4-17

4.7 IP Addressing And Directory Management 4-17

Web Services Company Profiles

5.1 BEA 5-1

5.1.1 BEA WebLogic E-Business Platform 5-2

5.1.2 BEA Web Services 5-3

5.1.3 BEA Core Business 5-4

5.1.4 BEA WebLogic Portal 5-5

5.1.5 BEA Customer Base 5-5

5.1.6 BEA Product Development 5-7

5.1.7 BEA Revenue 5-7

5.2 Bowstreet 5-9

5.3 Borland 5-9

5.4 Cape Clear 5-11

5.4.1 CapeConnect Features 5-12

5.5 Fujitsu 5-14

5.5.1 Fujitsu PC Corporation 5-14

5.5.2 Fujitsu Software Corporation 5-15

5.6 GE Global eXchange Services (GXS) 5-15

5.6.1 GXS Integration Solutions 5-16

5.6.2 GE Interchange Solutions 5-17

5.7 Hewlett Packard 5-18

5.8 International Business Machines (IBM) 5-19

5.8.1 IBM Revenue 5-20

5.8.2 IBM Fourth-Quarter and Total Year 2001 Revenue 5-21

5.8.3 IBM Middleware 5-23

5.8.4 IBM Middleware Products 5-24

5.8.5 IBM / Nortel 5-26

5.9 IONA 5-27

5.9.1 IONA Revenue 5-28

5.9.2 IONA Partnership Agreements 5-28

5.9.3 IONA Customers 5-28

5.9.4 IONA Products 5-28

5.10 Sybase 5-29

5.10.1 Sybase Third Quarter Revenue 5-30

5.10.2 Sybase Customers 5-31

5.10.3 Sybase Products 5-31

5.11 Tibco Software 5-31

5.11.1 Tibco Software 2001 Revenue 5-32

5.11.2 Tibco Strategic Partners 5-32

5.11.3 Tibco Strategic Alliances 5-33

5.11.4 Tibco Products 5-34

5.11.5 Tibco Revenue 5-34

5.11.6 Tibco Acquires Talarian 5-35

5.11.7 Hewlett-Packard and Tibco 5-36

5.11.8 Talarian 5-37

5.12 TTM 5-37

5.13 Vitria Technology 5-38

5.13.1 Vitria Technology Revenue 5-38

5.13.2 Vitria BusinessWare Product 5-39

5.14 webMethods 5-42

5.14.1 WebMethods Customers and Strategic Partners 5-43

5.15 WebEx Communications 5-46

 

List of Tables and Figures

Figure ES-1 ES-2

Web Services Market Forecast Portion Of Application Integration Broker, Application Server,

Enterprise Portal Markets, Forecasts, 2002-2007

Table ES-2 ES-3

Web Services Market Forecast Portion Of Application Integration Broker, Application Server,

Enterprise Portal Markets, Forecasts, 2002-2007

 

Table 1-1 1-2

Web Services Common Set Of Standard Protocols

Table 1-2 1-3

Web Services Architecture

Table 1-3 1-6

Web Services Back End Functionality Support

Table 1-4 1-7

Web Services Mobile Worker Functionality Support

Table 1-5 1-11

Benefits Of Business Process Management Products

Table 1-6 1-16

Web-Based Transaction Service Requirements

Table 1-7 1-28

E-Services Partnering Strategy

Table 1-8 1-28

E-Services Systems Strategy

Table 1-9 1-29

Assessment Of E-Services Communications Equipment Positioning

Table 1-10 1-30

E-Services

Table 1-11 1-31

E-Services Marketing Directions

Table 1-12 1-32

E-Services Market Positioning

Table 1-13 1-32

E-Services Modular Strategy

Table 1-14 1-33

E-Services Component Strategy

Table 1-15 1-34

E-Services Challenge

Table 1-16 1-34

Internet Market Driving Forces

Table 1-17 1-36

Key Functions Of The Online Store

 

Table 2-1 2-2

Deterrents To Effective Interaction Of Systems

Table 2-2 2-3

Ways To Achieve Reusable Web Services

Figure 2-3 2-7

Web Services Market Forecast Portion Of Application Integration Broker Application Server,

Enterprise Portal Markets, Forecasts, 2002-2007

Table 2-4 2-8

Web Services Market Forecast Portion Of Application Integration Broker Application Server,

Enterprise Portal Markets, Forecasts, 2002-2007

Figure 2-5 2-9

Web Services Portion Of Application Server Market Forecast, 2002-2007

Table 2-6 2-10

Web Services Portion Of Application Server Market Forecast, 2002-2007

Figure 2-7 2-11

Web Services Portion Of Application Integration Broker

Table 2-8 2-12

Web Services Portion Of Application Integration Broker

Figure 2-9 2-13

Web Services Portion Of Enterprise Portal Market Forecast, 2002-2007

Table 2-10 2-14

Web Services Portion Of Enterprise Portal Market Forecast, 2002-2007

Figure 2-11 2-15

Application Server Market Forecast, 2002-2007

Table 2-12 2-17

Applications Server Market Positioning

Table 2-13 2-18

Market Driving Forces For Applications Servers

Table 2-14 2-19

E-Commerce Target Markets

Figure 2-15 2-21

Application Integration Broker Market Forecast, 2002-2007

Figure 2-16 2-22

Enterprise Portal Market Forecast, 2002-2007

Table 2-17 2-24

Portal E-Business Strategy

Table 2-19 2-27

Total Application Integration Broker, Enterprise Portal, and Application Server Market Forecasts,

2002-2007

Table 2-19 2-28

Web Services Market Forecast As A Portion Of Total Application Integration Broker,

Enterprise Portal, and Application Server Market Forecasts, 2002-2007

Figure 2-20 2-30

Application Server Market Shares, 2002-2007

Table 2-21 2-45

Internet Enterprise Market Driving Forces

 

Table 3-1 3-3

IBM Web Services

Table 3-2 3-12

IBM Web Services Security Policies

 

Table 3-3 3-13

The WebSphere Server Authentication Mechanisms

Table 3-4 3-15

Enterprise Messaging Integration Functions

Table 3-5 3-17

IBM WebSphere MQSI Software Internal Enterprise Application Integration

Table 3-6 3-20

IBM Application Integration Positioning

Table 3-7 3-23

GE Global eXchange Services Positioning

Table 3-8 3-34

BEA Simple Web Services

Table 3-9 3-36

BEA Complex Web Services

Table 3-10 3-37

Complex Web Services Constraints

Table 3-11 3-39

BEA Functions of Context-Sensitive Transaction Support

Table 3-12 3-42

Sybase Web Services

Table 3-13 3-54

Tibco Web Services

Table 3-14 3-58

Tibco XML Platform Solutions

Table 3-15 3-62

Vitria Web Services

Table 3-16 3-74

IONA Web Services

Table 3-17 3-86

WebMethods Web Services

 

Table 4-1 4-6

SOAP-Based Web Service Production Environment Testing

Table 4-2 4-14

XSLT Transformation of XML

Table 4-3 4-18

Functions Of An IP Addressing Device

Table 4-4 4-19

Benefits Of an IP Addressing Device

 

 

Table 5-1 5-4

BEA Core Business

Table 5-2 5-23

IBM Middleware Solutions

Table 5-3 5-39

Vitria E-business Infrastructure Software Elements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

about the company

WinterGreen Research, founded in 1985, provides strategic market assessments in telecommunications, communications equipment, health care, and advanced computer technology. Industry reports focus on opportunities that will expand existing markets or develop major new markets. The reports assess new product and service positioning strategies, new and evolving technologies, and technological impact on products, services, and markets. Market shares are provided. Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years.

about the principal authors

Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries. Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services. She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration. She is the author of recent studies on worldwide telecommunications markets, the top ten internet equipment companies, the top ten contract manufacturing companies, and the Top Ten Telecommunications market analysis and forecasts.

Susan Eustis, President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications. She holds several patents in microcomputing and parallel processing. She has the original patents in electronic voting machines. She has new patent applications in format varying, mulitprocessing, and electronic voting. She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, Internet equipment, biometrics, a study of Internet Equipment, Worldwide Telecommunications Equipment, Top Ten Telecommunications, Digital Loop Carrier, Web Hosting, and Application Integration markets. Ms. Eustis is a graduate of Barnard College.

 

 

 

 

 

 

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