Executive Summary

A change is underway in the computing industry that is as significant as the initial adoption of the Internet for business use. This change will affect all aspects of the computer industry the way computer software is made, how it is sold, how it is deployed, and on what it will run. It will affect how small, medium, and large enterprises acquire and build applications; it will affect how independent software vendors (ISVs) build their products and take them to market; it will affect how value-added resellers (VARs) actually "add value" to the systems they sell by integrating applications; it will affect how original equipment manufacturers (OEMs) build computing hardware and infrastructure; and it will also affect how service providers [application solutions providers (ASPs), Internet service providers (ISPs), etc.] deploy software and sell service solutions.

On the enterprise side of the business, this change will affect how companies build and exploit their application portfolios; it will reduce the cost of development for specialized or custom applications; it will make the enterprise more responsive to changing market and competitive conditions; and it will increase workers' productivity.

This change goes right to the heart of how businesses can be structured and operated. It has the potential to fundamentally shift the very models upon which all businesses are built. As a result of the coming together of Web data formats, Web services, and the Internet, a new, very flexible application development model is emerging. This new model will fundamentally alter the way that enterprises, VARs, OEMs, ISVs, and service providers conduct their respective businesses.