elc200day8.ppt

Elias M. Awad

Third Edition

ELECTRONIC COMMERCE

From Vision to Fulfillment

1-1© 2007 Prentice-Hall, Inc

ELC 200 Day 8


Agenda

• Assignment 2 is Due • Assignment 3 posted

– Due Friday February 27 @ 2:05 Pm• Quiz 1 corrected

– 2 A’s, 3 B’s & 3 C’s– Do not leave anything unanswered

• I give partial credit for any attempt • Quiz 2 on March 3

– Chapters 3-6– Same format as before but with more time (60 min)

• Finish Discussion on extranets• Begin Discussions on Hosting your web site


Extranets and SCM• Intranets are localized within a firm and move data quicker

than the more widely distributed extranets

• Extranets are already the backbone of the e-business future

• Extranet designers at each participating company must collaborate to make sure there is a common interface with the company they are dealing with

• The overall connectivity represents supply chain management

• Extranet-SCM and Enterprise Resource Planning (ERP)– ERP facilitates integration of company-wide information

systems with the potential to go across companies

– The Internet allows linking the Web sites to back-end systems like ERP, offering connections to a host of external parties like vendors and suppliers


Basic Extranet Layout


Key Considerations for Extranet Installation

• Identify the user(s).

• List the technology components.

• Specify the security requirements.

• Discuss the administration of the extranet.

• Understand the functions of the extranet.


Extranets and ERP• Management support of extranets are changing how

organizations share internal resources and interact with the outside business world

• The entire commitment should be viewed as a knowledge management asset

• A “champion” represents management support. This person is:– An advocate with the ability to build company-wide support.– Sells top management on the potential of the technology.– Demonstrates how an extranet can help the company meet

its revenue goals.

• Extranets can be used to manage applications and tie applications into one integrated system for deriving real value


Management Implications• Intranets are tools to manage corporate

intelligence

• Change is closely related to employee satisfaction, and the effect of the intranet on the way employees do their jobs is important

• Another management implication is the strategy for recruiting qualified technical personnel


Chapter Summary• An intranet is a network connecting a set of

company clients using standard Internet protocols

• Benefits of intranets include linking employees and managers around the clock; companies gain access to their primary resources; and it is the foundation for developing an enterprise-wide information system

• The two types of client/server architecture are two-tier architecture and three-tier architecture

• Intranets can be protected from unauthorized access via firewalls


Chapter Summary (Cont’d)• Planning an intranet is a six-step procedure

• E-mail is getting smarter

• An alternative to e-mail is instant messaging

• An extranet links two or more trading partners

• Intranets are tools to manage corporate intelligence

Elias M. Awad

Third Edition

ELECTRONIC COMMERCE

From Vision to Fulfillment


Hosting Your Web Site


The focus of this chapter is on several learning objectives• ISPs and the services they offer

• How to choose an ISP

• How to register a domain name

• Role of application service providers

• How to select an ASP to suit your needs


The problem • So what do you need?

– A way to create a web site– A place (Web server) to put your web site– A way to connect your web site to the WWW– A domain name for your web site– A way for you to connect to your Web Site to “load,

update and maintain” your web site– A way for your customers to reach you (e-mail) – A way to accept orders – A way to make sure your web site stays “up”

• The question is what do you do yourself and what do you outsource to “someone else” and how do you pick the right “someone else”??


Terms to Know

• Internet Service Provider (ISP): company that connects customers with PCs and browsers to the Internet

• Virtual hosting: a company with its own domain name, hosted by an ISP to conduct business via the Internet

• Virtual domain: a company with its own domain name, hosted by an ISP to conduct business via the Internet– www.mydomain.com >> www.isp.com/mydomain– http://Tonyg.umfk.maine.edu >>

http://perleybrook.umfk.maine.edu

– http://compsci.umfk.maine.edu/ >> http://perleybrook.umfk.maine.edu

• Domain name: a company’s identifier in cyberspace

http://www.mydomain.com/

http://www.isp.com/mydomain

http://tonyg.umfk.maine.edu/

http://perleybrook.umfk.maine.edu/

http://compsci.umfk.maine.edu/


Why Use an ISP?• Most client organizations are anxious to go on the Internet without

questioning the reliability of the ISP that can accommodate their Web site

• There is more to deciding on an ISP than price:– Technology– Staffing– Speed– Amount of congestion

• Resources to host your own Web site:– Hardware - A Web server, communication gear, and a special router:

$5,000 to $18,000 a year• http://www.dell.com/content/products/category.aspx/servers?

c=us&cs=04&l=en&s=bsd&~ck=anavml • http://www.cisco.com/en/US/products/ps5853/index.html

– Communications - Typically a T1 or fractional T1 line: $5,000 to $12,000 per year

• http://www.buyt1s.com/lpatt545/?gclid=CLj26prG844CFQwbgQodOSGwKw

– Staff - At least a Webmaster, a Web designer, and a help desk: $45,000 to $80,000 per year

– Total - $58,000 to $110,000 per year


The Infrastructure of an ISP Provider• Your company Web site has to be stored on a

Web server that is always connected to the Internet by a high-speed link

• An ISP should provide:– Standby electric power as backup to keep the site

available in the event of a blackout.

– Redundant fault-tolerant servers to ensure that your Web site will continue in the event of a hard drive or a server breaks down.

– Redundant communications lines to keep your site active in the event a phone line or a router goes down

– One or more firewalls to protect your Web site from hackers or unauthorized access.


Web Site Infrastructure


Types of Service Providers

• Internet service provider (ISP): a specialized business that offers Internet access

• Applications service provider: offers packaged software for lease online

• Wireless application service provider (WASP): a company that offers untethered applications; hosting, developing, and managing applications are similar to that of an ASP

• Business service provider (BSP): and Internet service developer that rents only its own proprietary applications via the Web

• Whole service provider (WSP): a service provider that packages a selection of BSP applications for distribution online


Types of Web Hosting Services• Web Hosting: providing, managing, and

maintaining hardware, software, content integrity, security, and reliable high-speed Internet connections

• Four types of Web hosting services:– Dial-up access (not very common)– Developer’s hosting (very common in rural communities)

– Web hosting only (from very cheap to very good) – Industrial-strength hosting (urban)

• http://www.top-10-web-hosting.com/?wcw=google


From you to the dial-up ISP• TCP/IP protocol stack on PC separates message

into packets

• Packets converted to analog format by modem

• Analog signal sent over ordinary telephone line

• Receiving modem coverts from analog back to digital

• ISP sends from its computer to a dedicated connection to some bigger ISP


The Backbone of the Internet• Backbone: a cluster of competing companies

called network service providers.

• Backbones a usually fiber optic trunk lines with extremely high bandwidths.

• Backbones connect major network nodes and allow smaller ISPs access to the internet

• One NSP (Sprint) backbone map of USA

– Where you are connected to the backbone often determines your performance attributes


Packets, Routers, and Routes on the Internet


Internet Service Providers


Internet Backbone from UUNET


Selected Connection Types, Features and Speed (costs are estimates)


ISP Structure and Services• ISPs connect to NSPs

• Two types of ISPs

– Facilities-based ISPs have significant start-up costs associated with hardware and software purchases and Internet access leases

– Virtual ISPs do not have any of these costs– Marketing and sales to generate new

customers•Residential customers•Commercial customers•Public customers


ISP Services

• An ISP provides a variety of service - the expectations of any customer are for main services to include:

– Domain name server (DNS): a repository where the domain name for each ISP is stored

– E-mail: the most commonly used service on the Internet

– Radius server: a network access server that authenticates a user’s ID and password and triggers accounting to complete the customer’s chargeable session


ISP Optional Service

• World Wide Web server

• File transfer protocol (FTP)

• Internet relay chat (IRC)Internet relay chat (IRC): : a text-based a text-based chat service, where users connect to a chat service, where users connect to a local server as part of a larger network of local server as part of a larger network of IRC serversIRC servers

• News Server

• HTTP proxy service• A minimum of two servers of each type are

needed to launch a start-up ISP


Some bandwidth math• Size of web suite is 5 MB ~= 40,000,000 bits or 40Mb• If 120 users try to download the site every min

– 120*40Mb = 4800Mb/min = 800 Mb/sec• You want the site to download in 10 secs or less

– Each download must be 4Mb/ sec (40Mb/10 sec)– 1st sec = 2 users (8Mbps)– 2nd sec = 4 users (16Mbps) – 3rd sec = 6 users (24Mbps)– 10th sec (and every second there after) = 20 users (80Mbps)

• If you want the site to load twice as fast (5 sec) you need twice the bandwidth (160 Mbps)

• If the size of the web site = 500KB then you need 8Mbps for 20 concurrent users (@ 10 secs)

– 0.8 Mbps for 2 concurrent users ( more than DSL or Cable Modem up speeds)• Bandwidth required = (S * N) / (RS * 60)

– S = Size of web site in bits (8 * bytes)– N = Number of users per min– RS = Required download speed in sec

• Best case ~ 1 user per min with 5 sec download of a 50KB site (500 words with a 45KB jpeg background)

– (400Kb * 1) /(5*60) ~ 1.3 Kbps


Technical Services

• A T1 line is a digital carrier line that transmits digital signals at 1.544 Mbps – $500-1000/month

• A T3 line transmit digital signals at 44,736 Mbps– $5000/month

• Fiber-optic-based Internet:– OC-3 155.52 Mbps $12,000/month + carrier– OC-12 622.08 Mbps $30,000/month + carrier– OC-768 40 Gbps Don’t ask!

• A broadband connection on the Internet means many times the speed of the old dial-up service via modems


Technical Services (Cont’d) • Four types of broadband available for home

access are:

– Cable modems– Digital subscriber line (DSL)– Fiber-optic networks– Wireless technology


Factors In Choosing an ISP

See Questions to AskOn page 144 & 145


Major Consumer Problems with ISPs• Paying with a Debit Card

• Technical support that turns out not to be free

• Dialing a number to connect to the ISP that is not a local call– Long distance charges

• Trouble canceling an account

• Identity theft and the problems that ensue– Phake phree ISP’s


Checking out an ISP

• Find someone with experience who’s been using the ISP for at least three months and ask how good they find the service

• Find out the number of users the ISP has in your area and the number of modems in use at the ISP

• Find out the pipe (network connection) each ISP uses to the Internet

• What is the number of employees the ISP has and the range of service it offers?


ISP Rating Sites

• http://reviews.cnet.com/web-hosting/?tag=leftColumnArea1.0 http://www.webhostingratings.com/

• http://www.hostcompare.com/index.htm


Trends

• Growing trend toward no-fee and cut-rate Internet services

– Microsoft’s Hotmail– GMAIL from Google– NetZero Inc., has close to 2 million registered users

• The business of free ISPs is uncertain

• ISPs generate brand loyalty through portal services– MSN

• Speed is what everyone wants


Services to Expect From ISP• Register your domain name

• Capture and forward your e-mail

• Host your Web site

• Provide technical and managerial support

• Give on-the-road support


Importance of a Domain Name• A URL should be easy to remember and should represent

what the company is all about

– Make sure the domain name is officially in your name– Consider registering the following kinds of domain

names:• One or two close names• Unique product domain name• Ideal company domain name

• A URL has three major parts:

– http:// - Internet protocol– www.virginia.edu - The domain name– /schls.html - A subdirectory of the file


Choosing a Domain Name• List the possible domain names that fit your

organization’s image, products, or services

• Ask friends, peers, employees, and others who use the Web

• Narrow the list to a few favorites

• You want to check for availability ( www.internic.net )

• If the name is not in active use, then proceed with domain name registration


Legal Issues When Choosing Domain Names

• Determine if the proposed domain name infringes on trademarks

• Make sure the proposed domain name does not adversely affect any famous trademark

• Register as a federal trademark with the U.S. Patent and Trademark Office

• Register the proposed domain name with InterNic or Network Solutions (NSI)

• Look for expanded top-level domain names and registries

– .arts

– .firm

– .info

– .nom

– .per and .nom

– .rec

– .store

– .web


Registering Your Domain Name• Two ways to register:

– On your own– Through an ISP

• ISP charges about $50 for processing in addition to the registration fee

• Possible pitfalls:

– Overcharging– Domain name status– Backup– Contractual language


Three FAQs About Domain Names• What is involved in registering a domain name

in .com, .net, or .org?

• How long does a registration last?

• Can the registrar be changed after registering a domain name?


Definitions of Application Service Provider (ASP)• An organization that hosts software applications on its own

servers within its own facilities

• An Internet service provider that also sells application software that runs behind the Web servers at the hosting service

• Companies that sell, support, and manage applications that are hosted on the Internet on behalf of remote end users

• An extension of the ISP business offering Web-based applications as well as Internet access


Services Offered by ASP

• Owns and operates a software application

• Owns, operates, and maintains the servers that run the application

• Employs the staff to maintain the application

• Makes the application available to customers everywhere via the Internet, normally in a browser

• Bills either on a per-use basis or on a monthly/annual fee basis. In many cases, the ASP can provide the service for free or even pay the customer.


Benefits of ASP

• Outsourcing to an ASP lets the firm concentrate on its core competencies

• ASPs can keep their technical environment up-to-date

• Employ highly skilled and talented staff

• An ASP can cut monthly costs of application ownership

• Internet bandwidth shifts to the ASP


Service Level Agreement• Service Level Agreement (SLA): a contract between the

user and the ASP vendor stating the vendor’s commitments to ensure reliable delivery of information.– Limits of liability – Example: Service goes out for one day in a month?

• Refund 1/30 of monthly fee of service?

• Shaking hands is not enough.

• Successful outsourcing of any application will require accountability, performance, and remediation to be spelled out and agreed upon by all parties.


Assignment 3

• Due Feb 27 @ 2:05 PM• assignment3.doc• budgetTemplate.xls


Chapter Summary

• Internet service providers (ISPs) are attractive to many companies for several reasons:– Specialized staff to manage Web sites– High-speed connectivity to main Internet hubs– Real physical security from power outages– The latest technology

• ISPs can belong to one of three categories:– Large wholesale access provider– Smaller Internet backbone provider– Local ISP


Chapter Summary (Cont’d)• Hosting a Web site involves three major items:

hardware, communications network and qualified staff.

• There are four types of service providers: ISPs, ASPs, BSPs, and WSPs.

• The backbone of the Internet is the group of network service providers that work together to provide total interconnection.


Chapter Summary (Cont’d)• Shopping for a Web-hosting ISP involves:

– align bandwidth– connection availability and performance– virtual hosting– number of e-mail addresses allowed per

account– ISP stability and staying power– Free local access– Customer service and technical support– ISP reliability and cost of service


Chapter Summary (Cont’d)• For online marketing, an ISP should be capable

of:– Registering your domain name– Capturing and forwarding e-mail– Hosting the Web site– Technical and managerial support– On-the-road support

• Your domain name is the “house” for your Web site, e-mail, and other e-commerce transactions

• Wireless application service provider (WASP) handles untethered applications


Chapter Summary (Cont’d)• ASPs are services provided through the Internet

• To consider becoming an ISP, it is important to:– consider the target market– services to provide– technical requirements– type of provider to be

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