Where will Web Services be deployed?

John Hagel writes in this two part article on his blog :
"Confusion reigns supreme in the Web services world....Technologists unwittingly contribute to this confusion. Let's take two examples. Read the technology press and you hear two themes. First, Web services are about the dynamic composition of applications from many micro-services. Second, Web services will be deployed first within the enterprise and then migrate beyond the firewall."

And then goes on clearing this confusion. I am not sure if I understood the "dynamic composition of applications from micro-services". What are micro services? Is it the components of a huge legacy (need not be mainframe, and generally a mixture of Mainframe and Open systems) application because that's what will drive the push to web services. These components, credit card processing, order tracking etc would be the first to be turned into web services and when you have opened the doors with these small small web services, these will operate not just within an enterprise, inside the firewalls but will reach out to the partners (or anyone else) of the enterprise who want to consume the services offered.
All in all, I really enjoyed reading John's articles and his blog.