Abstract
This paper discusses an ongoing research programme, which explores the development of the software‐as‐a‐service business model by different service providers (xSPs). With the demise of the first phase of the ASP market, due to the failure of vendors to provide business value to potential and existing customers, Web services promise to resolve some of these problems by integrating software applications across heterogeneous technology platforms and business environments. Whether this will be achieved is the subject of continuing debate. This paper presents the preliminary findings from a study, which uses the Microsoft .NET technology platform to develop Web services. Two Web‐enabled prototype databases are discussed. The paper concludes that Web services is still relatively new, but if key technical and business challenges are resolved, it may provide value for the customer where ASPs failed.