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Transcript of 1 E-Commerce Web Hosting Options Jerry Post Westgate Management Development Center Eberhardt School...
1
E-Commerce
Web Hosting Options
Jerry PostWestgate Management Development Center
Eberhardt School of Business
University of the Pacific
2
Retail Business Basics
Create business
Government
Accounting
Taxes
Registration
Purchases
Sales
Payments
Receipts
Shipping
Marketing
Analysis
3
Issuing Bank
Customer
Retail Store/Site
Card NumberAnd Expiration
Merchant BankAcquiring Bank
Card InformationAmountRetail Account
Settlement Processor
CardValidation
TransactionsTransactions
Credit Card Processing
4
Credit Card Processing Fees
Transaction fee Usually less than $0.50 Percent of charges From 2 to 5 percent Monthly minimum $25 to $35 per month Setup fees Variable depending on bank and
technologies used
5
Web Site Basics
Consumer
Server
URL/page request
PageProgram
Code
Log file
Database
HTMLPage
Images
6
Browser Cookies
ConsumerServer
First page/login
Display pageSave cookie file
New page requestSend cookie
Validate userCreate cookie (ID)Generate page
Use cookie ID to identify userGenerate new page
Note: cookies can only be returned to one site/domain.Companies Never even see cookies generated by other sites.
7
Internet Connections
Individual
Internetserviceprovider (ISP)
Phonecompany
Networkserviceprovider (NSP)
Backbonenetwork
Phonecompany
CompanyWeb site
Dial-up: 33.3 - 56 KbpsISDN: 128 KbpsDSL: 256 Kbps - 6 MbpsCable: 1 to 10 Mbps
Cablecompany
T1: 1.544 MbpsT3: 44.736 Mbps
OC3: 155.52 MbpsOC12: 655 Mbps
T1: 1.544 MbpsT3: 44.736 Mbps
8
Capacity Calculations
monthBytesGmonth
days
day
onds
bits
Bytes
ond
bits/500
30*
sec400,86*
8*
sec
000,544,1
T1 1.544 mbps $1600/month $1000/mbpsT3 45 mbps $10,000/month $222/mbps
Connectionbps 50kB file # dial-up userscost cost/mbps GB/month cost/GB/monthDial-up 33k 12.121 1 $20 $606 11 $1.82T1 1.544m 0.259 47 $1,600 $1,036 500 $3.20T3 45m 0.009 1364 $10,000 $222 14580 $0.69
T1: 1.544 mbps T3:45 mbps OC-12:655 mbps
10
Economies of Scale
Internet Bandwidth Economies of Scale
0
200
400
600
800
1000
1200
1400
1600
1800
0 10 20 30 40 50
mbps
$/m
bp
s
11
Internet Connections Backbone providers
AT&T GTE Worldcom/MCI Sprint Qwest
Network service providers 1998: 39 AGIS AT&T Cable & Wireless IBM MCI/Worldcom Qwest Sprint UUNet
Phone companies Regional Bell operating
companies (RBOCs) (6) Competitive local exchange
carriers (CLECs) (new)
Cable companies Intermedia TCI/AT&T Regional.
Satellite Direct Satellite
Internet service providers 1998: over 5000
12
Frequency Spectrum
ELF VLF LF MF HF VHF UHF Microwave Optical
100 30K 300K 3M 30M 300M 3G 10G Hertz
Navy/s
ubm
arine
s
TV: 22
0M -
500
MHz
AM:
550K
- 16
50 K
Hz
Public
Saf
ety:
150
M -
160
MHz
Public
Saf
ety:
460
M -
500
MHz
Cellula
r pho
nes:
800
MHz
Cordle
ss p
hone
s (s
ome)
: 90
0 M
Hz
Pers.
Com
. Sys
(PCS):
1.8
5 G -
2.2
GHz
PCS E
T: 2
GHz
TV: 54
M -
216
MHz
FM:
88M
- 10
8 M
Hz
http://www.fcc.gov/oet/info/database/spectrum/Welcome.html
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Simple HTML Pages
Main Web Page
Categories…
Category 1
Product photo… …
Category 2
Product photo… …
Category 3
Product photo… …
Product 1DescriptionPricePhoto
Product 2DescriptionPricePhoto
Product nDescriptionPricePhoto
Product 3DescriptionPricePhoto
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Merchant Web site
Buy-Me Button
ProductDescriptionPrice
Buy Me
Shopping CartItem Price… …
TotalCheck Out
Credit Card DataName
AddressPhone
Card NumberSubmit
Card Processor Site
CustomerNotification(Accept/Reject)
Notify merchant
http://www.goemerchant.com/buymebutton.htm
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Auctions
Uncertain price Can set reserve price Good for unique items Efficiency depends on
Full information Adequate number of participants
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Amazon.com zShops
zShop ProductsCameras, Digital, Brand
Vendor 1
Vendor 2
Vendor 3Vendor TransferDescriptionPriceScanned imageContact info
ConsumerProduct searchChoose vendorPay for item
Transaction ProcessingAmazon.com handles creditSends order info to merchantMerchant ships item to consumer
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Virtual Malls
Essentially a marketing agreement The “mall” provides a directory to merchants The merchant site runs on a different server
Directory of Shops
Product categoryVendor 1Vendor 2 Merchant Site
ProductsSales
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Web Commerce Servers
Your Web siteProducts
Shopping cartSales
Web servers
Database
Commerce Server Shell
Web/Commerce Hosting Company
CustomersMerchants
Load database
Images
Descriptions
Prices
Customize site
19
Application Service Provider
Business Applicatione.g., Accounting
Store dataAnalyze dataFacilitate companyinteraction
Businesses that lease the use of the application
20
Web Server Platforms
Linux/UNIX clone Microsoft Windows NT/2000 Sun Microsystems + Oracle 8i IBM WebSphere
21
Web Server Criteria
Database support Crucial for e-commerce Integration with Web server
Microsoft ODBC and ASP PERL Database connector Java database connector
Database system choices Microsoft Access Microsoft SQL Server Oracle 8, 8i IBM DB2
Scalability Increase speed and capacity
without rewriting the Web application.
Two primary methods Faster server Distributed processing
Transaction processing Crucial for integrated online
systems to prevent loss of data.
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Database Management System (DBMS)
Store data Support queries (SQL) Provide backup and recovery Support multi-user access and prevent concurrency
problems Share data across servers
Microsoft Open Database connectivity (ODBC) Oracle network
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Scalability
Increase usage rates without rewriting the application. Run on bigger, faster servers
Requires wide range of hardware platforms
Support distributed processing on multiple servers Easy to expand Requires advanced software support Application must be designed carefully Handles failures easily through redundancy
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Transactions and Message Queues
Transactions are a set of changes that must succeed or fail together.
Example: transfer money from savings to checking account.
Advanced systems and databases handle transactions almost automatically (just specify start and end points).
Message queues are used in distributed systems to store messages (e.g., transactions) in case a machine or a link goes down.
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Platform Comparison
Platform Database Scalability Scripting
Linux Limited Limited PERL
Windows 2000
Good, ODBC integrates most DBMSs
Distributed, transactions, message queuing
ASP
Sun/Oracle Good within Oracle
Server size Java, PERL
IBM WebSphere
Good, IBM, Oracle
Distributed, transactions, message queuing
Java
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Windows 2000
Enterprise Web Server clusterWeb pagerequest
Requests handled by available server
Database Server cluster
Web page built from
HTML
Images
Data
ODBC + ASP
27
Sun/Oracle 8i
Web pagerequest
DataImagesHTML pages
Java code to link together
Sun Server
Oracle DBMS Software
Transactions andconnectivityhandled by Oracle
Scalability provided mostly with bigger server.
28
IBM WebSphere
Web pagerequest
WebSphere software
Hardware can be IBM,Sun, or Intel.
IBM S/390
Traditional IBM machine• Database• Transactions• Message Queue• Scalability
29
Hosting on Shared Servers
ISP Server Your customer
Hundreds of customers for other businesses
You design the site.
Transfer to ISP
•Server is shared by other firms
•Performance outside your control
•Capacity is limited
•Data transfer is limited
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Server Co-Location
ISP location
Customer
Development
•You purchase or lease a server solely for your use that is installed at the ISP location.
•You usually have physical access.
•Pay space and data transfer charges to ISP
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Run Your Own Server
Customer
Development and Web site management
ISP
T1: monthly lease
router
router
• You have total control
• You pay monthly lease to phone company and ISP
• You can connect to internal computers
Connect to your other computers.
32
Summary: Costs
Costs Simple HTML Single Unit Commerce Site
Shared Server
Co-Location
Your Own Server
Setup $0 $0-$10 $300 $200 $3000 $8000
Monthly $0-$20 3-5% per sale
$200 + 3-5% per sale
$40-$500 $400-$1000
$800-$2000
Manage-ment
Minimal site updates
Site/product updates
Product/catalog updates
Site updates
Pay, or manage server
Complete server management