It is first important to understand that there are many, many, standards that make up the broader category of "Web services". These range from base level technologies that make up the foundation of Web services like SOAP, WSDL, XML, and UDDI, to specific applications of the base standards in other efforts like XML Digital Signature, XML Encryption, WS-Security, and so on.
The initial focus of the W3C on providing the basic building blocks of Web services standards, and OASIS's focus on providing a more "e-business" perspective to the Web Services efforts (things like UDDI, eBXML, and the various vertically focused XML schema's), generally kept them in harmony with each other.
The foundational standards are now well defined and implemented broadly. We are moving into a new category of standards efforts that naturally cause some overlap to occur between OASIS and the W3C. This overlap should not be viewed as detrimental, on the contrary this overlap is a natural outgrowth of the lineage of each of the organizations. Oasis coming at the challenge from a more application focused approach, and W3C from the foundation are now meeting in the middle where things like Choreography, BPEL, Security, and Transaction support must be dealt with.
This will not lead to a set of conflicting standards in the market, instead customers will drive the adoption of the standards as they are defined and rolled out. This will naturally have the most applicable, widely supported, and broadly usefuly standards succeeding regardless of where they came from. Remember, standards don't make markets, markets make standards.
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