This essay focuses on the discussing of web services and web applications in business. The researcher states that popularity of web services and SOA has offered a great potential for drastic reductions in cost for integrating business applications with much higher flexibility and reusability. A key to the success of SOA is the distinct separation of the service interface from its implementation. The clients which consume these services have no idea how these services execute their requests. Web services are the next big thing in the evolution of the Web as they have a lot to offer the world in terms of infrastructure and automation tools for promoting inter-business relationships over the Internet. REST has also caught everyone’s attention in a big way and has given rise to a novel way to design web services that restricts any kind of dependency on proprietary middleware and application software. REST is slowly replacing the SOAP and WSDL-based design and using RESTful APIs to expose a system’s resources has proved to be a very flexible approach to provide different applications with standard formatted data. These new technologies, that were discussed in the essay have not only enabled organizations to think in a big way, but also brave the challenges thrown ahead of them in terms of new, evolving technologies that are present and rapidly changing architectural trends. It has empowered them to adapt to the ever changing face of IT and confidently address their business goals and objectives.