Merrill Lynch is, in fact, pursuing Web services on several fronts, but Balliet says "dedicating resources to [emerging technologies] has been substantially reined in. Eighteen months ago we let our best and brightest explore new technologies, in part to keep them from leaving for dot-coms. Today we still do it, but it's far more controlled."
The same philosophy holds true at companies that Merrill Lynch relies on. Business Engine, for example, provides IT project management services to Merrill in an ASP model. As such, it's a strong candidate to explore the potential of Web services. But John O'Neil, the company's CEO, is approaching the technology cautiously. "We don't want to be 12 months ahead of our customers," he says. "Today most companies don't want bleeding-edge, they want bandages."
O'Neil says his firm is "optimistic but sober" about the eventual benefits of Web services. "But it's a road, not an event." True enough, but all indications are that this road may soon be as heavily traveled as that other metaphorical highway.
Scott Leibs is a senior editor at CFO.
No Overnight Success
Web services will enter most organizations in three distinct phases.
2002: Within the firewall
- Simplified application integration
- Increased developer productivity
2004: Contained external users
- Simplified business-partner connectivity
- Richer application functionality
- Subscription-based services
2006 to 2008: Fully dynamic search and use
- Casual/ad hoc use of services
- New business models possible
- Commoditization of software
- Pervasive use in nontraditional devices
Source: IDC
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