SOA is a buzzword that was invented by technology vendors to help sell their Enterprise Service Bus related technologies. The idea is that you make your little island applications in the enterprise (eg: accounting system, stock control system, etc) all expose services, so that they can be orchestrated flexibly into 'applications', or rather become parts of aggregate enterprise scoped business logic.
Basically a load of old bollocks that nearly never works, because it misses the point that the reasons why technology is the way it is in an organisation is down to culture, evolution, history of the firm, and the lock in is so high that any attempt to restructure the technology is bound to fail.
