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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.
The term Web services describes a standardized way of integrating Web-based applications using the XML, SOAP, WSDL and UDDI open standards over an Internet protocol backbone. XML is used to tag the data, SOAP is used to transfer the data, WSDL is used for describing the services available and UDDI is used for listing what services are available. Used primarily as a means for businesses to communicate with each other and with clients, Web services allow organizations to communicate data without intimate knowledge of each other's IT systems behind the firewall.
In practice, a Web service commonly provides an object-oriented Web-based interface to a database server, utilized for example by another Web server, or by a mobile app, that provides a user interface to the end-user. Many organizations that provide data in formatted HTML pages will also provide that data on their server as XML or JSON, often through a Web service to allow syndication, for example, Wikipedia's Export. Another application offered to the end-user may be a mashup, where a Web server consumes several Web services at different machines and compiles the content into one user interface.
A web service is something that a website chooses to offer to those who wish to read, update and/or delete data from your website. You might call it a "backdoor" to your data. Instead of presenting the data as part of a webpage it is provided in a pre-determined way where some of the more popular are XML and JSON. There are several ways to communicate with a webservice, some use SOAP, others have REST'ful web services, etc.
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