Web services are emerging as a new paradigm for integrating business processes across heterogeneous computing environments. They are expected to alleviate the perennial problem of interoperability of software applications, which results in data and information silos. Many application service providers have repositioned themselves as Web services providers to compete in this highly volatile industry. This paper focuses upon the supply-side of Web services, utilizing four constructs: market positioning, partnerships and alliances, products and services, and integration. It presents the findings from survey research into 190 technology sector firms, which indicate that Web service firms will need to strengthen their market positioning if they are to develop strong partnerships and alliances with leading technology firms.