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Can you give an example of when it would be appropriate to
use a web service as opposed to a non-serviced .NET component

Answer Posted / reddy

Communicating through a Firewall When building a distributed
application with 100s/1000s of users spread over multiple
locations, there is always the problem of communicating
between client and server because of firewalls and proxy
servers. Exposing your middle tier components as Web
Services and invoking the directly from a Windows UI is a
very valid option.
Application Integration When integrating applications
written in various languages and running on disparate
systems. Or even applications running on the same platform
that have been written by separate vendors.
Business-to-Business Integration This is an enabler for B2B
intergtation which allows one to expose vital business
processes to authorized supplier and customers. An example
would be exposing electronic ordering and invoicing,
allowing customers to send you purchase orders and suppliers
to send you invoices electronically.
Software Reuse This takes place at multiple levels. Code
Reuse at the Source code level or binary componet-based
resuse. The limiting factor here is that you can reuse the
code but not the data behind it. Webservice overcome this
limitation. A scenario could be when you are building an app
that aggregates the functionality of serveral other
Applicatons. Each of these functions could be performed by
individual apps, but there is value in perhaps combining the
the multiple apps to present a unifiend view in a Portal or
Intranet.
When not to use Web Services: Single machine Applicatons
When the apps are running on the same machine and need to
communicate with each other use a native API. You also have
the options of using component technologies such as COM or
.NET Componets as there is very little overhead.
Homogeneous Applications on a LAN If you have Win32 or
Winforms apps that want to communicate to their server
counterpart. It is much more efficient to use DCOM in the
case of Win32 apps and .NET Remoting in the case of .NET Apps

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