ITU-T Kaleidoscope 2010
Beyond the Internet? - Innovations for future networks and services
Competition and Cooperation in the formation of Information Technology
Interoperability Standards: A
Process Model of Web Services Core
Standards
Dr. Jai Ganesh
Infosys Technologies Ltd.
Jai_ganesh01@infosys.com
Pune, India, 13 – 15 December 2010

Contents
Introduction
Motivation, Research Objective
Literature Survey
Standardisation, Open Standards, IT interoperability, Process Theory, Web services, Standard Bodies
Research Methodology
Process Model
Conclusion
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Introduction
Standards formation is a key dimension in the competitive strategy of ICT firms modularization and network externalities favorable IT interoperability standards
We examine the standardization efforts of core Web services standards develop an empirically grounded process model of standardization processes of three inter-related core Web services standards
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Motivation
Web services standards involve competitive and cooperative standards formation strategies exhibited by dominant
firms in the ICT industry, the standards are inter-related and were formed almost in parallel,
private and public participation, including informal groups such as COP, involvement of multiple standard setting
bodies reflecting the dynamics of institutionalization
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Research Objective
Understand the competitive as well as cooperative behavior of dominant firms in the process of standards setting
Large scale adoption of three core interoperability standards
UDDI, SOAP, WSDL
ICT interoperability fosters innovation by reducing lock-in effects, lowers entry barriers, enhances user choice, and growth of diverse applications
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Open Standards
Open Standards are standards made available to the general public and are developed (or approved) and maintained via a collaborative and consensus driven process
ITU-T
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Standard Bodies: W3C and OASIS
World Wide Web Consortium
(W3C): SOAP, XML, WSDL
The Organization for the
Advancement of Structured
Information Standards
(OASIS), UDDI W3C focuses on basic specifications right from
HTML and HTTP
W3C’s standards are applauded for their robustness
OASIS focuses on developing higher level standards
Standards setting process may run to two to three years.
The slow pace may not find takers in fast moving technology businesses.
Standards formation timelines for OASIS are much shorter
OASIS has been criticized for the lower degree of usefulness and quality of its standards
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Research Methodology: Data Sources
Data sources for our methodology were technical notes of standard bodies (OASIS,
W3C, IETF etc.), research forums (IBMDeveloperworks etc.) analyst reports (Zapthink, Forrester and
Gartner), books (Professional XML Web services) and practitioner journals (Dr. Dobb’s Journal) archives of developer discussions
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Research Methodology: Unit of
Analysis
The unit of analysis was a particular standard i.e. SOAP, UDDI and WSDL
Service
Broker
Registry
Publish
(WSDL)
Discover
(UDDI)
Service
Provider
Invocation
(SOAP)
Service
Requestor
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WSDL
Web Services Description language
(WSDL) defines a standard description mechanism for Web services
A WSDL document describes what functionality a Web service offers, how it communicates and where it is accessible.
WSDL 1.0 was developed by IBM, Microsoft and Ariba
WSDL 1.1 was published in March 2001
WSDL 2.0 became a W3C recommendation on June 2007
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ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services

SOAP
Simple Object Access Protocol (SOAP) is a XML based lightweight protocol for exchange of information in a decentralized, distributed environment
SOAP defines a mechanism for expressing application semantics by providing a modular packaging model
SOAP was developed by Microsoft
SOAP Version 1.2 became a W3C recommendation on June 24, 2003
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UDDI
Universal Description, Discovery and
Integration (UDDI) is a platformindependent registry for businesses to list their web services on the Internet
Discovery mechanism for Web services.
UDDI uses WSDL to describe the interfaces
IBM, Microsoft, Ariba and 33 other companies team up to develop UDDI specs in 2000
Public UDDIs did not find industry support and in 2006, IBM, Microsoft, and SAP closed their public UDDI nodes
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Process Theory
Process theories focus on sequences of activities to explain how and why particular outcomes evolve over time
Mohr, L. B. [1982]; Shaw, et al. [1997]
Process theories are easier to understand and are high in relevance
Shaw, and Jarvenpaa, [1997]
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Research Methodology: Analysis
We explored antecedent conditions, encounters, episodes, and outcomes during standards formation
Newman, M. & Robey, D. [1992]
Each standard was analyzed by first preparing a visual process map of sequence of events
Events, activities and decisions were categorized and the time dimension of progression was also captured minutely
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Year
1999 
2000 
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2001 
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2002 
Timeline of the 3 Standards
SOAP
Microsoft develops SOAP along with DevelopMentor and Userland
Microsoft submits SOAP to the Internet Engineering Task Force (IETF) for review
IBM offers support for SOAP
SOAP receives support from over 20 companies including Intel, Ariba etc.
Microsoft submits SOAP v1.1 to W3C along with Ariba, CommerceOne,
DevelopMentor, HP, IBM, SAP, Userland Software etc.
IBM reference implementation of SOAP v1.1
Release of SOAP v 1.2. by IBM
W3C forms working group for standardizing SOAP
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SOAP extension by Microsoft, HP, Webmethods
SOAP Security extensions by IBM and Microsoft
Updated IBM Web Services Toolkit v 2.2 which supports UDDI, SOAP, and WSDL ebXML Integrates SOAP into Messaging Services Specification
Microsoft announces SOAP toolkit v2.0
Microsoft Publishes XML Web Services specifications for review
W3C draft of SOAP 1.2 standard
Sun supports Web services standards
Microsoft Releases new XML Web Services Specifications
Microsoft submits a Web services related standard (DIME) to IETF
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UDDI
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IBM, Microsoft, Ariba and 33 other companies team up to develop UDDI specs
UDDI Business Registry goes live
The initiative gets widespread industry support including Oracle, HP,
Dell, Intel, Nortel, Sun Microsystems,
Ford Motor, Webmethods etc.
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IBM releases UDDI4J, an open-source
Java implementation of UDDI
RosettaNet registers 83 business process standards within UDDI
UDDI registry becomes live
HP becomes registry operator
UDDI.org releases UDDI v2
IBM offers its UDDI registry
SAP offers its UDDI registry
IBM, HP, and SAP announces support for UDDI4J
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2003 
2005
2006
2007
Amazon.com Web Services Facility Supports XML/HTTP and SOAP
SOAP Version 1.2 Published as a W3C recommendation
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UDDI is adopted by OASIS
IBM releases UDDI registry extensions
NTT launches UDDI registry
OASIS ratifies UDDI v2.0 as an open standard
OASIS ratifies UDDI v3.0.2 as an open standard
IBM, Microsoft, and SAP close their public UDDI nodes
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Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
WSDL
-
WSDL 1.0 is developed and released by IBM, Microsoft and Ariba to describe Web
Services for their SOAP toolkit
IBM releases WSDL Toolkit
WSDL 1.1 is published
IBM, Microsoft along with leading players, submits
WSDL to W3C
IBM releases Web Services
Invocation Framework
(WSIF), complementary to
WSDL
IBM releases WSDL
Explorer Web Application
Cape Clear releases free
WSDL Editor
W3C releases WSDL 1.2
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WSDL 2.0 becomes a W3C recommendation
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Process Model
Standardization processes unfold as a dynamic interplay of five activities: resource pooling formulated by the involved firms, creation of linkages with communities of practice and standard institutions, signaling and implementation experiments institutionalization and preservation of proprietary control extension
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Process Model
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Resource Pooling
Firms were pooling resources to build
Web services architecture stacks
IBM co-developed the SOAP/UDDI stack with Microsoft, Ariba, etc.
IBM was leveraging the horizontal capabilities ingrained in its software divisions to ensure a unified approach
Microsoft formulated its entire Internet strategy around SOAP
Resource pooling from smaller firms such as Ariba, DevelopMentor, Userland etc.
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Linkages
Linkage functions include promotion and dissemination of artifact logic, dissemination of specification, collaboration with other standard setting bodies, communities of practice etc.
Critical for the dominant players such as IBM and Microsoft to create strong linkages with the ecosystem partners
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Linkages
Contd….
Dominant
Players
IBM
Microsoft •
•
WSDL
• Microsoft
• Ariba
IBM eBay
• Ariba
SOAP
• DevelopMentor
• Userland Software
UDDI
Ariba • Java-based UDDI code,
• Eclipse code which was valued at about $40 million
Ariba
Open Source
Community
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Signaling & Implementation
Signaling is a mechanism available to convey the degree of commitment towards the standardization process
Announcements about potential new products/platforms, extensions of existing product/platforms, product/platform support for the standard etc.
Implementations are in the form of reference implementations which are representative of actual usage scenarios.
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Signaling & Implementation
Contd…
Microsoft was aggressive in incorporating SOAP into its offerings
HP came out with its Web Services
Platform, which supported UDDI,
WSDL, SOAP and ebXML
Other key players such as Sybase, TIBCO,
Vitria, Borland, Mercury Interactive and smaller players such as Cape Clear, IONA,
Flamenco, etc. started supporting the basic
Web services standards
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ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Institutionalisation
Firms create and maintain institutionalisation through industry councils, technical committees, and trade associations
Industry associations educate, and negotiate with other institutions and governmental units
Institutionalisation can be seen in the case of UDDI, wherein four companies (IBM,
Microsoft, NTT and SAP) were operating the UDDI Business registries
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ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services

Extension
Network effects allow software platform firms to secure a dedicated user base, supported by complementers who in turn attract more users
Complementers provide applications which are compatible to the platform
Complementers trigger indirect network effects by making available useful, innovative and compatible software applications
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ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Extension
Contd….
Firms involved in IT standardisation can have two pronged strategy with the primary strategy of promoting network effects by large scale adoption by new users the secondary strategy of enhancing value to the end users by leveraging indirect network effects by promoting adoption by complementers.
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Extension
Contd….
Firms have two ways to extract revenue from standard setting: primary licensing or extending proprietary control of higher-level services (layers)
IBM and Microsoft own significant intellectual property
This gives them motivation enough to work towards extensions to standards while maintaining their proprietary rights
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Extension
Contd….
Microsoft follows the extension strategy
It first announces support for a standard and works with the standard bodies
Followed by partial/full support for the standard and adding extensions which work only with Microsoft interfaces
As Microsoft enjoys a dominant position, the increased use of proprietary extensions results in the Microsoft version to be the dominant one
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Conclusion
One of the first efforts to analyse the process of IT interoperability standards formation involving inter-related standardization efforts progressing in parallel
The process of standard creation involves five intertwined states the standardization processes unfold as a dynamic interplay of these five activities, albeit not in a linear-fashion
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Conclusion
Standardization efforts of SOAP, UDDI and WSDL were progressing in parallel dominant firms were IBM and Microsoft playing a dominant role in not only proposing the standards, but also in deciding their evolution and final adoption
A specification may be selected due to not only transaction efficiencies but also because of resource and existing technology path dependencies
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ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Conclusion
Standard setting tactics are influenced by prior relationships more closely firms work on technical committees, more likely they will collaborate for a standardisation initiative
Maintaining proprietary control was important for firms in extensions and later stages of standardization, thus influencing firms' decisions related to licensing agreements
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Conclusion
External factors such as COP play a significant role in defining the standards and the standard setting process
Dominant firms seem to agree for public ownership of basic layers, while they could enforce proprietary control over extensions or emerging top layer
Cause of concern for open source evangelists
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Future Research
Extend the analysis of activities to other standardization processes
Examine the generalisability of the proposed model examining the standardization efforts in other Web services standards such as WSorchestration, WS-security, etc.
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Future Research
Use alternate forms of research design and data collection
Survey based research
Explore network relationship effects, especially at the level of dominant firm and bridge firm, standard-setting bodies and major sponsors, and COP
This would be particularly relevant in the context of emerging IT standards.
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet? Innovations for future networks and services
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Thank you
Jai_ganesh01@infosys.com
Pune, India, 13 – 15 Dec 2010:
ITU-T Kaleidoscope 2010 – Beyond the Internet?
Innovations for future networks and services
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