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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