You may have looked at the title and wondered what does he mean by SQL' 05 and Web Services.
Well, I will tell you exactly what I mean...
In 2000 SQL Server had SQL XML, which a lot of developers used, but required a mid-tier IIS server in order to be able to do Web Services from the database. What Microsoft heard from developers was they wanted Web Services directly out of the database and not be required to use IIS to manage that on the server side. The great thing about Web Services directly from the database is now developers can interoperate with many more development environments, or even runtime environments. You can use third-party tools to create queries against the database or call stored procedures, and that will be just a SOAP call to the database and will return back the information through a SOAP call. Microsoft has taken the world of XML, relational, even semi-structured sorts of data, and tried to combine them inside of SQL Server 2005 to help the developers build against all their different types of data.
SQL '05 creates an HTTP endpoint that listens on a port. You tell it the port and security method which it will combine into the standard Web Services Security package. You then make a SOAP call and tell the web service what you want from the database. That could be a stored procedure call or T-SQL batch (and that could be a SELECT * from a table inside of the database). Then SQL '05 will put the data into a SOAP message and send it back to the caller. It's not pure web services but it definitily looks like it.
Microsoft is really taking Service Oriented Architeture to the next level from the backend database. If you do not know what Service Oriented Architecture is, you will find out soon with my next blog.