Is REST a better approach to doing Web Services or is SOAP? Or are they different tools for different problems? Or is it a nuanced issue - that is, is one slightly better in certain arenas than another, etc?
Bounty-Edit:
Now, almost three years later I would like to ask this question again - offering a bounty to encourage an indepth answer. I would especially appreciate information about those concepts and their relation to the PHP-universe and also modern high-end web-applications.
An old question but still relevant today....due to so many developers in the enterprise space still using it.
My work involves designing and developing IoT (Internet of Things) solutions. Which includes developing code for small embedded devices that communicate with the Cloud.
It is clear REST is now widely accepted and useful, and pretty much the defacto standard for the web, even Microsoft has REST support included throughout Azure. If I needed to rely on SOAP I could not do what I need to do, as is just too big, bulky and annoying for small embedded devices.
REST is simple and clean and small. Making it ideal for small embedded devices. I always scream when I am working with a web developer who sends me a WSDLs. As I will have to begin an education campaign about why this just isn't going to work and why they are going to have to learn REST.
One thing that hasn't been mentioned is that a SOAP envelope can contain headers as well as body parts. This lets you use the full expressiveness of XML to send and receive out of band information. REST, as far as I know, limits you to HTTP Headers and result codes.
(otoh, can you use cookies with a REST service to send "header"-type out of band data?)
I'd recommend you go with REST first - if you're using Java look at JAX-RS and the Jersey implementation. REST is much simpler and easy to interop in many languages.
As others have said in this thread, the problem with SOAP is its complexity when the other WS-* specifications come in and there are countless interop issues if you stray into the wrong parts of WSDL, XSDs, SOAP, WS-Addressing etc.
The best way to judge the REST v SOAP debate is look on the internet - pretty much all the big players in the web space, google, amazon, ebay, twitter et al - tend to use and prefer RESTful APIs over the SOAP ones.
The other nice approach to going with REST is that you can reuse lots of code and infratructure between a web application and a REST front end. e.g. rendering HTML versus XML versus JSON of your resources is normally pretty easy with frameworks like JAX-RS and implicit views - plus its easy to work with RESTful resources using a web browser
SOAP is useful from a tooling perspective because the WSDL is so easily consumed by tools. So, you can get Web Service clients generated for you in your favorite language.
REST plays well with AJAX'y web pages. If you keep your requests simple, you can make service calls directly from your JavaScript, and that comes in very handy. Try to stay away from having any namespaces in your response XML, I've seen browsers choke on those. So, xsi:type is probably not going to work for you, no overly complex XML Schemas.
REST tends to have better performance as well. CPU requirements of the code generating REST responses tend to be lower than what SOAP frameworks exhibit. And, if you have your XML generation ducks lined up on the server side, you can effectively stream XML out to the client. So, imagine you're reading rows of database cursor. As you read a row, you format it as an XML element, and you write that directly out to the service consumer. This way, you don't have to collect all of the database rows in memory before starting to write your XML output - you read and write at the same time. Look into novel templating engines or XSLT to get the streaming to work for REST.
SOAP on the other hand tends to get generated by tool-generated services as a big blob and only then written. This is not an absolute truth, mind you, there are ways to get streaming characteristics out of SOAP, like by using attachments.
My decision making process is as follows: if I want my service to be easily tooled by consumers, and the messages I write will be medium-to-small-ish (10MB or less), and I don't mind burning some extra CPU cycles on the server, I go with SOAP. If I need to serve to AJAX on web browsers, or I need the thing to stream, or my responses are gigantic, I go REST.
Finally, there are lots of great standards built up around SOAP, like WS-Security and getting stateful Web Services, that you can plug in to if you're using the right tools. That kind of stuff really makes a difference, and can help you satisfy some hairy requirements.
I'm sure Don Box created SOAP as a joke - 'look you can call RPC methods over the web' and today groans when he realises what a bloated nightmare of web standards it has become :-)
REST is good, simple, implemented everywhere (so more a 'standard' than the standards) fast and easy. Use REST.
It's a good question... I don't want to lead you astray, so I'm open to other people's answers as much as you are. For me, it really comes down to cost of overhead and what the use of the API is. I prefer consuming web services when creating client software, however I don't like the weight of SOAP. REST, I believe, is lighter weight but I don't enjoy working with it from a client perspective nearly as much.
I'm curious as to what others think.