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To me, these terms sound very similar. Is there a difference really?
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A service does not need interaction and is pretty much just a random process that keeps running doing the same thing, but a server is a service because it is basically a process that keep waiting for a request to come in so that it can return a response.
There are four leading web servers − Apache, IIS, lighttpd and Jagsaw. Now we will see these servers in bit more detail.
Also, Website is a url(server package/program) that is open/known/has-access to the end user(human user) for them to interact. But webservice is a url(server program) that is(should be) accessible only by another program and the result from it, generally, is(should be) understandable only by the calling program..
Though APIs and web services can both facilitate data transfers between applications over the internet, they are not the same, and the terms should not be used interchangeably in every case. The key distinction is that web services are a type of API: All web services are APIs, but not all APIs are web services.
A web service will be running on a web server.
A web server is a piece of software designed to serve web pages/web sites/web services. Examples are IIS, Apache and many more. The name can also refer to the hardware running this software.
As web service will be running inside a web server - normally serving up XML or performing some action in response to input.
From wikipedia:
Web services today are frequently just Application Programming Interfaces (API) or web APIs that can be accessed over a network
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