"Business Week has a special report on Web services:
'Web services refer to a set of programming standards used to make different types of software talk to each other over the Internet, without human intervention...Unlike the ASPs, which were building out massive data centers and basically running rental services for other people's software, today's Web-service companies design their software from the ground up to be delivered over the Internet as a service. That's a big difference. It means their business model can scale, and the bigger they get, the more profitable they become because they're building on that initial research and development investment.'"From this E M E R G I C . o r g post.