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Ker Vin.ax1237Ker Vin.ax1237 

Understanding API Governor Limits

According to this document 
http://www.salesforce.com/us/developer/docs/apexcode/Content/apex_gov_limits.htm

Total number of callouts (HTTP requests or Web services calls) in a request10
Maximum timeout for all callouts (HTTP requests or Web services calls) in a request120 seconds


I assume this means that there can be a total of 10 calls every two minutes. As in, organization-wide, only a max of 10 calls TO the external application and FROM the external application is allowed.

Is this correct? Also, can someone provide an example how governer limits work for webservice APIs? I'm a bit confused as to how to they are applied......as in how the maximum number of calls is calculated?

Best Answer chosen by Admin (Salesforce Developers) 
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"Total number of callouts" and "Maximum timeout for all callouts" are limits for a single transaction. This means that your Apex Code is allowed 120 seconds of "waiting time" against a maximum of 10 requests per transaction. Multiple separate transactions may be running at once, each one with a full allotment of 120 seconds and 10 callouts, up to the concurrent transaction limit 25 for non-developer, non-sandbox orgs. Also, this applies only to connections that are Outbound from the application. Incoming requests are rated by the API rate limiting mechanisms. You are allowed a number of incoming calls per day as determined by your org type and number of licenses (see API Rate Limiting for details). In summary, you are granted 1,000 (Enterprise) or 5,000 (Unlimited) calls per Salesforce license (and a smaller number for partner user licenses), with a minimum of 5,000 calls per day, and a maximum of 1,000,000 (Enterprise), 5,000,000 (Sandbox), or Unlimited (Unlimited).