E-commerce
business. technology. society.
Sixth Edition
Kenneth C. Laudon
Carol Guercio Traver
Copyright © 2010 Pearson Education, Inc.
Chapter 3
The Internet and
World Wide Web:
E‐commerce Infrastructure
Copyright © 2007
2010 Pearson Education, Inc. Slide 1-2
[Link]
Class Discussion
Have you used [Link]? If so, has it been useful; if
not, is it a service that seems interesting? Why or why
not?
Are there any privacy issues raised by geo‐tagging?
What are the potential benefits to consumers and firms
of mobile services? Are there any disadvantages?
What revenue models could work for providers of mobile
services such as Layar and Slifter?
Copyright © 2010 Pearson Education, Inc. Slide 3-3
The Internet: Technology
Background
Internet
Interconnected network of thousands of networks and millions of
computers
Links businesses, educational institutions, government agencies, and
individuals
World Wide Web (Web)
One of the Internet’s most popular services
Provides access to around billions, possibly trillions, of Web pages
Copyright © 2010 Pearson Education, Inc. Slide 3-4
The Evolution of the Internet
1961—The Present
Innovation Phase, 1964–1974
Creation of fundamental building blocks
Institutionalization Phase, 1975–1994
Large institutions provide funding and legitimization
Commercialization Phase,1995–present
Private corporations take over, expand Internet backbone
and local service
Copyright © 2010 Pearson Education, Inc. Slide 3-5
The Internet:
Key Technology Concepts
Defined by Federal Networking Commission
as network that:
Uses IP addressing
Supports TCP/IP
Provides services to users, in manner similar to telephone system
Three important concepts:
1. Packet switching
2. TCP/IP communications protocol
3. Client/server computing
Copyright © 2010 Pearson Education, Inc. Slide 3-6
Packet Switching
Slices digital messages into packets
Sends packets along different communication paths
as they become available
Reassembles packets once they arrive at destination
Uses routers
Special purpose computers that interconnect the computer networks that
make up the Internet and route packets
Routing algorithms ensure packets take the best available path toward their
destination
Less expensive, wasteful than circuit‐switching
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Packet Switching
Figure 3.3, Page 130
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TCP/IP
Transmission Control Protocol (TCP):
Establishes connections between sending and receiving Web
computers
Handles assembly of packets at point of transmission, and
reassembly at receiving end
Internet Protocol (IP):
Provides the Internet’s addressing scheme
Four TCP/IP Layers
1. Network Interface Layer
2. Internet Layer
3. Transport Layer
4. Application Layer
Copyright © 2010 Pearson Education, Inc. Slide 3-9
The TCP/IP Architecture and
Protocol Suite
Figure 3.4,
Page 132
Copyright © 2010 Pearson Education, Inc. Slide 3-10
Internet (IP) Addresses
IPv4:
32‐bit number
Expressed as series of four sets of separate numbers
marked off by periods
[Link]
Class C address: Network identified by first three sets, computer
identified by last set
New version: IPv6 has 128‐bit addresses, able to handle up
to 1 quadrillion addresses (IPv4 can only handle 4 billion)
Copyright © 2010 Pearson Education, Inc. Slide 3-11
Routing Internet Messages:
TCP/IP and Packet Switching
Figure 3.5, Page 133
Copyright © 2010 Pearson Education, Inc. Slide 3-12
Domain Names, DNS, and URLs
Domain Name
IP address expressed in natural language
Domain Name System (DNS)
Allows numeric IP addresses to be expressed in natural
language
Uniform Resource Locator (URL)
Address used by Web browser to identify location of
content on the Web
E.g., [Link]
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Client/Server Computing
Powerful personal computers (clients)
connected in network with one or more
servers
Servers perform common functions for
the clients
Storing files, software applications, etc.
Copyright © 2010 Pearson Education, Inc. Slide 3-14
Insight on Business
P2P Dukes It Out with Streaming Video
Class Discussion
How does P2P networking differ from client/server
networking?
Why is P2P networking a potential money‐saver for
corporations and other organizations?
What are some illegal uses of P2P networking?
What are some legal uses of P2P networking?
What other alternatives are there for streaming large video
files?
Copyright © 2010 Pearson Education, Inc. Slide 3-15
The New Client: The Emerging
Mobile Platform
Within a few years, primary Internet
access will be through:
Netbooks
Designed to connect to wireless Internet
Under 2 lbs, solid state memory, 8” displays
$200–400
Smartphones
Disruptive technology: Processors, operating systems
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Cloud Computing
Firms and individuals obtain computing
power and software over Internet
E.g., Google Apps
Fastest growing form of computing
Radically reduces costs of:
Building and operating Web sites
Infrastructure, IT support
Hardware, software
Copyright © 2010 Pearson Education, Inc. Slide 3-17
Other Internet Protocols and
Utility Programs
Internet protocols
HTTP
E‐mail: SMTP, POP3, IMAP
FTP, Telnet, SSL
Utility programs
Ping
Tracert
Pathping
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The Internet Today
Internet growth has boomed without
disruption because it is based on:
Client/server computing model
Hourglass, layered architecture
Network Technology Substrate
Transport Services and Representation Standards
Middleware Services
Applications
Copyright © 2010 Pearson Education, Inc. Slide 3-19
The
Hourglass
Model of the
Internet
Figure 3.11, Page 144
SOURCE: Adapted from Computer
Science and Telecommunications
Board (CSTB), 2000.
Copyright © 2010 Pearson Education, Inc. Slide 3-20
Internet Network Architecture
Backbone:
High‐bandwidth fiber‐optic cable networks
Private networks owned by a variety of NSPs
Bandwidth: 155 Mbps–2.5 Gbps
Built‐in redundancy
IXPs: Hubs where backbones intersect with regional and
local networks, and backbone owners connect with one
another
CANs: LANs operating within a single organization that
leases Internet access directly from regional or national
carrier
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Internet Network Architecture
Figure 3.12, Page 145
Copyright © 2010 Pearson Education, Inc. Slide 3-22
Internet Service Providers (ISPs)
Provide lowest level of service to individuals,
small businesses, some institutions
Types of service
Narrowband (dial‐up)
Broadband
Digital Subscriber Line (DSL)
Cable modem
T1 and T3
Satellite
Copyright © 2010 Pearson Education, Inc. Slide 3-23
Intranets and Extranets
Intranet
TCP/IP network located within a single
organization for communications and
processing
Extranet
Formed when firms permit outsiders to
access their internal TCP/IP networks
Copyright © 2010 Pearson Education, Inc. Slide 3-24
Who Governs the Internet?
Organizations that influence Internet and
monitor its operations include:
Internet Architecture Board (IAB)
Internet Corporation for Assigned Names and Numbers
(ICANN)
Internet Engineering Steering Group (IESG)
Internet Engineering Task Force (IETF)
Internet Society (ISOC)
World Wide Web Consortium (W3C)
International Telecommunications Union (ITU)
Copyright © 2010 Pearson Education, Inc. Slide 3-25
Insight on Society
Government Regulation and
Surveillance of the Internet
Class Discussion
How is it possible for any government to “control” or censor
the Web?
Does the Iranian government, or the U.S. government, have
the right to censor content on the Web?
How should U.S. companies deal with governments that want
to censor content?
What would happen to e‐commerce if the existing Web split
into a different Web for each country?
Copyright © 2010 Pearson Education, Inc. Slide 3-26
Internet II: The Future
Infrastructure
Limitations of current Internet
Bandwidth limitations
Quality of service limitations
Latency
“Best effort” QOS
Network architecture limitations
Language development limitations
HTML
Wired Internet limitations
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The Internet2® Project
Consortium of 200+ universities,
government agencies, and private
businesses collaborating to find ways to
make the Internet more efficient, faster
Primary goals:
Create leading edge very‐high speed network for national
research community
Enable revolutionary Internet applications
Ensure rapid transfer of new network services and
applications to broader Internet community
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The Larger Internet II
Technology Environment:
The First Mile and the Last Mile
GENI Initiative
Proposed by NSF to develop new core
functionality for Internet
Most significant private initiatives
Fiber optics
Mobile wireless Internet services
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Fiber Optics and the Bandwidth
Explosion in the First Mile
“First mile”: Backbone Internet services that carry
bulk traffic over long distances
Older transmission lines being replaced with fiber‐
optic cable
Much of fiber‐optic cable laid in United States is
“dark”, but represents a vast digital highway that can
be utilized in the future
Photonic technologies expand capacity of existing fiber
lines
Copyright © 2010 Pearson Education, Inc. Slide 3-30
The Last Mile: Mobile Wireless
Internet Access
“Last mile”: From Internet backbone to
user’s computer, cell phone, PDA, etc.
Two different basic types of wireless
Internet access:
1. Telephone‐based (mobile phones, smartphones)
2. Computer network‐based
Copyright © 2010 Pearson Education, Inc. Slide 3-31
Telephone-based Wireless
Internet Access
Competing 3G standards
GSM: Used primarily in Europe
CDMA: Used primarily in the United States
Evolution:
2G cellular networks: relatively slow, circuit‐switched
2.5G cellular networks: interim networks
3G cellular networks: next generation, packet‐switched
3.5G (3G+)
4G (WiMax, LTE)
Copyright © 2010 Pearson Education, Inc. Slide 3-32
Wireless Local Area Networks
(WLANs)
Wi‐Fi
High‐speed, fixed broadband wireless LAN, different versions for
home and business market, limited range
WiMax
High‐speed, medium range broadband wireless metropolitan area
network
Bluetooth
Low‐speed, short range connection
Ultra‐Wideband (UWB)
Low power, short‐range high bandwidth network
Zigbee
Short‐range, low‐power wireless network technology for remotely
controlling digital devices
Copyright © 2010 Pearson Education, Inc. Slide 3-33
Wi-Fi Networks
Figure 3.16, Page 164
Copyright © 2010 Pearson Education, Inc. Slide 3-34
Benefits of Internet II Technologies
IP multicasting:
Enables efficient delivery of data to many locations on a network
Latency solutions:
diffserv (differentiated quality of service)
Assigns different levels of priority to packets depending on type of data being
transmitted
Guaranteed service levels and lower error
rates
Ability to purchase right to move data through network at guaranteed
speed in return for higher fee
Declining costs
Copyright © 2010 Pearson Education, Inc. Slide 3-35
Development of the Web
1989–1991: Web invented
Tim Berners‐Lee at CERN
HTML, HTTP, Web server, Web browser
1993: Mosaic Web browser w/GUI
Andreesen and others at NCSA
Runs on Windows, Macintosh, or Unix
1994: Netscape Navigator, first commercial
Web browser
Andreessen, Jim Clark
1995: Microsoft Internet Explorer
Copyright © 2010 Pearson Education, Inc. Slide 3-36
Hypertext
Text formatted with embedded links
Links connect documents to one another,
and to other objects such as sound, video,
or animation files
Uses Hypertext Transfer Protocol (HTTP)
and URLs to locate resources on the Web
Example URL
[Link]
Copyright © 2010 Pearson Education, Inc. Slide 3-37
Markup Languages
Generalized Markup Language (GML)—1960s
Standard Generalized Markup Language
(SGML)—early GML,1986
Hypertext Markup Language (HTML)
Fixed set of predefined markup “tags” used to format text
Controls look and feel of Web pages
eXtensible Markup Language (XML)
New markup language specification developed by W3C
Designed to describe data and information
Tags used are defined by user
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Web Servers and Web Clients
Web server software:
Enables a computer to deliver Web pages to clients on networks that
request this service by sending an HTTP request
Apache and Microsoft IIS
Basic capabilities: security services, FTP, search engine, data capture
Web server
Can refer to Web server software or physical server
Specialized servers: database servers, ad servers, etc.
Web client:
Any computing device attached to the Internet that is capable of
making HTTP requests and displaying HTML pages
Copyright © 2010 Pearson Education, Inc. Slide 3-39
Web Browsers
Primary purpose to display Web pages
Internet Explorer (67%) and Firefox (23%)
dominate the market
Other browsers include:
Netscape
Opera
Safari (for Apple)
Google’s Chrome
Copyright © 2010 Pearson Education, Inc. Slide 3-40
The Internet and Web: Features
Internet and Web features on which the
foundations of e‐commerce are built
include:
E‐mail
Instant messaging
Search engines
Intelligent agents (bots)
Online forums and chat
Streaming media
Cookies
Copyright © 2010 Pearson Education, Inc. Slide 3-41
E-mail
Most used application of the Internet
Uses series of protocols for transferring
messages with text and attachments
(images, sound, video clips, etc.,) from
one Internet user to another
Can be an effective marketing tool
Spam a worsening problem
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Instant Messaging
Displays words typed on a computer
almost instantly, and recipients can then
respond immediately in the same way
Different proprietary systems offered by
AOL, MSN, Yahoo, and Google
Meebo, Digsby: allow users to
communicate across platforms
Copyright © 2010 Pearson Education, Inc. Slide 3-43
Search Engines
Identify Web pages that match queries based
on one or more techniques
Keyword indexes, page ranking
Also serve as:
Shopping tools
Advertising vehicles (search engine marketing)
Tool within e‐commerce sites
Outside of e‐mail, most commonly used
Internet activity
Copyright © 2010 Pearson Education, Inc. Slide 3-44
How Google Works
Figure 3.22, Page 180
Copyright © 2010 Pearson Education, Inc. Slide 3-45
Intelligent Agents (Bots)
Software programs that gather and/or
filter information on a specific topic and
then provide a list of results
Search bot
Shopping bot
Web monitoring bot
News bot
Chatter bot
Copyright © 2010 Pearson Education, Inc. Slide 3-46
Online Forums and Chat
Online forum:
AKA message board, bulletin board, discussion group,
board, or forum
Web application that enables Internet users to
communicate with each other, although not in real time
Members visit online forum to check for new posts
Online chat:
Similar to IM, but for multiple users
Typically, users log into chat room
Copyright © 2010 Pearson Education, Inc. Slide 3-47
Streaming Media
Enables music, video, and other large
files to be sent to users in chunks so that
when received and played, file comes
through uninterrupted
Allows users to begin playing media files
before file is fully downloaded
Copyright © 2010 Pearson Education, Inc. Slide 3-48
Cookies
Small text files deposited by Web site on
user’s computer to store information
about user, accessed when user next
visits Web site
Can help personalize Web site
experience
Can pose privacy threat
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Web 2.0 Features and Services
Blogs
Personal Web page that typically contains a series
of chronological entries by its author, and links to
related Web pages
Really Simple Syndication (RSS)
Program that allows users to have digital content
automatically sent to their computers over the
Internet
Copyright © 2010 Pearson Education, Inc. Slide 3-50
Web 2.0 Features and Services
Podcasting
Audio presentation stored as an audio file and available
for download from Web
Wikis
Allows user to easily add and edit content on Web page
New music and video services
Videocasts
Digital video on demand
Copyright © 2010 Pearson Education, Inc. Slide 3-51
Web 2.0 Features and Services
Internet telephony (VOIP)
Uses Voice Over Internet Protocol (VOIP) and
Internet’s packet‐switched network to transmit
voice and other forms of audio communication
over the Internet
Internet television (IPTV)
Telepresence and video conferencing
Copyright © 2010 Pearson Education, Inc. Slide 3-52
Web 2.0 Features and Services
Online software and Web services
Web apps, widgets, and gadgets
Digital software libraries, distributed storage
M‐commerce applications
Beginning to take off
Copyright © 2010 Pearson Education, Inc. Slide 3-53
Insight on Technology
All Mashed Up
Class Discussion
What are Web mashups and what technology makes
them possible?
Why would Google and others allow their software to be
combined with other software?
What is the potential benefit to consumers?
If mashups ultimately make money, how will the
revenues be divided?
Why would mashups be supportive of contextual
advertising?
Copyright © 2010 Pearson Education, Inc. Slide 3-54
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permission of the publisher. Printed in the United States of America.
Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Copyright © 2010 Pearson Education, Inc. Slide 3-55