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Elias M. Awad
Third Edition
ELECTRONIC COMMERCE
From Vision to Fulfillment
1-1© 2007 Prentice-Hall, Inc
ELC 200 Day 8
1-2© 2007 Prentice-Hall, Inc
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
1-3© 2007 Prentice-Hall, Inc
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
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Basic Extranet Layout
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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.
1-6© 2007 Prentice-Hall, Inc
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
1-7© 2007 Prentice-Hall, Inc
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
1-8© 2007 Prentice-Hall, Inc
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
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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
3-10© 2007 Prentice-Hall, Inc
Hosting Your Web Site
3-11© 2007 Prentice-Hall, Inc
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
3-12© 2007 Prentice-Hall, Inc
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”??
3-13© 2007 Prentice-Hall, Inc
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
3-14© 2007 Prentice-Hall, Inc
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
3-15© 2007 Prentice-Hall, Inc
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.
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Web Site Infrastructure
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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
3-18© 2007 Prentice-Hall, Inc
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
3-19© 2007 Prentice-Hall, Inc
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
3-20© 2007 Prentice-Hall, Inc
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
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Packets, Routers, and Routes on the Internet
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Internet Service Providers
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Internet Backbone from UUNET
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Selected Connection Types, Features and Speed (costs are estimates)
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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
3-26© 2007 Prentice-Hall, Inc
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
3-27© 2007 Prentice-Hall, Inc
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
3-28© 2007 Prentice-Hall, Inc
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
3-29© 2007 Prentice-Hall, Inc
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
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Technical Services (Cont’d) • Four types of broadband available for home
access are:
– Cable modems– Digital subscriber line (DSL)– Fiber-optic networks– Wireless technology
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Factors In Choosing an ISP
See Questions to AskOn page 144 & 145
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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
3-33© 2007 Prentice-Hall, Inc
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?
3-34© 2007 Prentice-Hall, Inc
ISP Rating Sites
• http://reviews.cnet.com/web-hosting/?tag=leftColumnArea1.0 http://www.webhostingratings.com/
• http://www.hostcompare.com/index.htm
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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
3-36© 2007 Prentice-Hall, Inc
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
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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
3-38© 2007 Prentice-Hall, Inc
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
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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
3-40© 2007 Prentice-Hall, Inc
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
3-41© 2007 Prentice-Hall, Inc
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?
3-42© 2007 Prentice-Hall, Inc
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
3-43© 2007 Prentice-Hall, Inc
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.
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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
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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.
3-46© 2007 Prentice-Hall, Inc
Assignment 3
• Due Feb 27 @ 2:05 PM• assignment3.doc• budgetTemplate.xls
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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
3-48© 2007 Prentice-Hall, Inc
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.
3-49© 2007 Prentice-Hall, Inc
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
3-50© 2007 Prentice-Hall, Inc
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
3-51© 2007 Prentice-Hall, Inc
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