Exposing Business Functionality on the network - A web service is a unit of managed code that provides some sort of functionality to client applications or end users. This functionality can be invoked over the HTTP protocol which means that it can also be invoked over the internet. Nowadays all applications are on the internet which makes the purpose of Web services more useful. That means the web service can be anywhere on the internet and provide the necessary functionality as required.
A web service always hides the internal complexity of the service to its clients. For an example, an airliner which is selling tickets via a third party portal is only gathering end user info via a web service and in return it is providing ticket. The portal which is selling ticket doesn't have to bother about the internal complexity of the airlines ticket reservation systems.
Without prejudice to other definitions I would say that a web service is software system that allows for inter-operable machine-to-machine / application-to-application interaction over a network. This generic definitions would also help consider REST architectures to be a web service as they provide similar functionality albeit being an architectural style unlike the SOAP which is a fully defined protocol.
A web service is a collection of open protocols and standards used for exchanging data between applications or systems. Software applications written in various programming languages and running on various platforms can use web services to exchange data over computer networks like the Internet in a manner similar to inter-process communication on a single computer. This interoperability (e.g., between Java and Python, or Windows and Linux applications) is due to the use of open standards.
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A web service is a software system designed to support interoperable machine-to-machine interaction over a network. It has an interface described in a machine-processable format (specifically WSDL). Other systems interact with the web service in a manner prescribed by its description using SOAP-messages, typically conveyed using HTTP with an XML serialization in conjunction with other web-related standards.
When a registrar registers a com domain name for an end-user, it must pay a maximum annual fee of US$7.34 to VeriSign, the registry operator for com, and a US$0.18 annual administration fee to ICANN. Most domain registrars price their services and products to address both the annual fees and the administration fees that must be paid to ICANN. Barriers to entry into the bulk registrar industry are high for new companies without an existing customer base.
Many organizations use multiple software systems for management. Different software systems often need to exchange data with each other, and a Web service is a method of communication that allows two software systems to exchange this data over the Internet. The software system that requests data is called a service requester, whereas the software system that would process the request and provide the data is called a service provider.
Web services use something known as SOAP (Simple Object Access Protocol) for sending the XML data between applications. The data is sent over normal HTTP. The data which is sent from the web service to the application is called a SOAP message. The SOAP message is nothing but an XML document. Since the document is written in XML, the client application calling the web service can be written in any programming language.