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The most commonly deployed web service applications employ client-server communication patterns, with clients running remotely and services hosted in data centers. In this paper, we make the case for Service-Oriented Collaboration applications that combine service-hosted data with collaboration features implemented using peer-to-peer protocols. Collaboration features are awkward to support solely based on the existing web services technologies. Indirection through the data center introduces high latencies and limits scalability, and precludes collaboration between clients connected to one-another but lacking connectivity to the data center. Cornellpsilas Live Distributed Objects platform combines web services with direct peer-to-peer communication to eliminate these issues.