Service orientation provides benefits for businesses by enabling them to move from brittle, hardwired application silos to shared, reusable business and infrastructure components. This eliminates application redundancy and complexity, enabling business agility, innovation and operational excellence. The document discusses service orientation at eBay, where over 300 services have been developed to organize the enterprise as reusable business functions and reduce costs of new features and applications. Challenges of service orientation include technical issues like latency and security as well as ensuring developer adoption and effective governance processes.