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A major issue in the resource allocation problem, also known as the data and service allocation problem, in a networked organization is the key problem in Web services distribution. A detailed investigation is carried out of the resource allocation model of allocating data and application services across a distributed networking system. The data and application service allocation problem is modeled as an integer programming formulation, and the properties of the objective function are investigated in detail. A tabu search based algorithmic solution is presented for the resource allocation problem. A sample problem is carried on here to illustrate the modeling approach. This study would benefit organizations by providing them with a powerful integrated modeling tool which could be used for overall user domain creation and data and service allocation, and perform network analysis and detect performance bottlenecks and help in the implementation of a Web services system.