The IT Strategy Letter
A digest of Doug Kaye's weblogs for the week ending January 21, 2003 (Subscribe)


Web Services Strategies
Web Hosting Strategies
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It's been a full month since the last weekly edition of The IT Strategy Letter. I was behind schedule on my new book, Loosely Coupled--The Missing Pieces of Web Services. But I've come up for air, and I'm thrilled to report that the manuscript is complete. Half the chapters have been reviewed, revised, and forwarded to my editor. I'll have more to say each week (including some excerpts), but the news for now is that it should be available by the end of March.

To be informed when Loosely Coupled is available, make sure you have your own free subscription to this newsletter.

Web Services Strategies

ZapThink's Forecast. Ron and Jason have published their 2002 retrospective and expectations for 2003, including:

  • The emergence of SOAs in corporate IT infrastructures
  • Roadblocks to web services adoption: security and management
  • Improving performance through XML proxies
  • XML adoption in vertical industries
  • Market consolidation of XML data store vendors
Posted Saturday, January 18, 2003 9:20:39 AM

U.S. Web Services Market Analysis, 2002. IDC has released their 40-page $2,500 report. Web services demand will grow to $21 billion by 2007, with an average annual CAGR of 94% among all segments. Over the next 10 years, there will be a cumulative $184 billion spent on Web services projects. According to Dr. Anthony C. Picardi, senior vice president of Global Software at IDC, "Web services will become the dominant distributed computing architecture over the next 10 years. The opportunity for IT vendors could exceed $21 billion a year by 2007."
Posted Tuesday, December 31, 2002 8:38:29 AM  

Loose Coupling is Like Pornography. Two months ago I posted an item comparing tight and loose coupling including a table. I received a lot of feedback, and I've since updated that table for my forthcoming book.

Now there's a discussion thread on the topic on W3C's web site.
Posted Wednesday, January 15, 2003 11:09:27 PM

Passport Down for Three Hours. Hmmm...yet another reason not to depend on centralized identity services. [Source:]
Posted Friday, January 03, 2003 11:29:54 AM

And again a few days later (January 9): "Access to Microsoft's Hotmail, Messenger and Passport services as well as some other MSN services was cut for more than an hour." [Source:]

10 Hurdles to Web Services Success. Nick Evans of .net Magazine offers his list:

  • Educate the Marketplace
  • Deliver Enterprise Value
  • Develop Sustainable Business Models
  • Identify Adoption Paths
  • Make Web Services Ubiquitous
  • Trust the Software As a Service Model
  • Establish Interoperability
  • Set Standards
  • Invest in Emerging Technologies
  • Set Realistic Expectations
Posted Friday, January 03, 2003 8:50:10 AM

Web Services Questioned. "New research contradicts recent technology vendor claims that web services are 'real' and being deployed by as many as half of Australia's large companies. [Source: Australian IT]

I'd say the same is likely true in the US.
Posted Sunday, December 29, 2002 3:08:09 PM

Web Hosting Strategies

2003: The Year of Web Services? This is my year-in-review column for The Web Host Industry Review. "While web services--computers communicating directly with one another via XML--will certainly get rolling in 2003, they won't take off for at least another year, and won't become an important part of web hosting until 2005." And more...

Here are all of the Year-in-Review articles by the Web Host Industry Review columnists and reporters:

Posted Friday, December 20, 2002 4:28:05 PM

New Insurance Products for the Hosting Industry. "When SLAs are no longer enough to protect hosting providers from costly lawsuits, what other lifelines are out there?...ISPs and Web hosting are the only industries that have been able to get away with contractually denying any liability for incidents involving their services." [Source: HostingTech Magazine]
Posted Friday, January 10, 2003 9:42:33 PM

Paid Peering. "AOL clearly believed its unpaid peering arrangement with Cogent was out of balance, with several reports suggesting the Cogent-to-AOL traffic was three times the volume of the AOL-to-Cogent traffic...[Last week] the dispute went public in a story in the Washington Post, with finger-pointing all around." [Source: Rich Miller, Carrier Hotels]
Posted Saturday, January 04, 2003 3:43:23 AM

Outsourcing Trends for 2003. Kathleen Goolsby, senior writer at The Outsourcing Center, picks her Top Five list.

  • provider cost cutting
  • buyers looking for vendor financial stability
  • outsourcing of continuity of operations, document imaging and document retention
  • the "managed services" buzzword
  • business transformation outsourcing (BTO) [whatever that means]
Posted Friday, January 03, 2003 8:19:13 AM's Results. announced that it sold more than 56 million items worldwide from November 1 to December 23, 2002.

The largest sales day occurred on Monday, December 9, with 1.7 million units ordered, or 20 items per second worldwide. The second largest sales day, with 1.6 million units ordered, occurred on Wednesday, December 11, just a day before the holiday ordering deadline for Free Super Saver Shipping on Thursday, December 12.
[Source: Scott Loftesness]

Not that most e-commerce sites will ever see those levels, but the ratio is interesting. Amazon's busiest day (1.7 million units) was less than 2x the average over the 53-day period (56 million / 53 days = 1.06/day average). I would have expected their busiest day to be closer to 4x or 5x the 53-day average.
Posted Friday, December 27, 2002 9:27:30 PM 

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"...essential reading for anyone seeking to deploy this technology."

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and author of
"Out of the Box"


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