Internet Trends

1. Internet Trends Manitowoc-Two Rivers Chamber of Commerce Vision 2011 Symposium Peter T. Breznay University of Wisconsin – Green Bay

2. Outline The Internet: • What it was • What it is • Limitations of the current model • Where it is going • Economic and social implications Internet Trends

3. Internet History • The Internet started as a DoD project • DoD wanted a network for data exchange between research sites • DARPA (Defence Advanced Research Projects Agency) funded the first network: ARPAnet • NSF, Universities, others joined in (NSFNet) • Commercialized in 1990 Internet Trends

4. The First Vision of the Internet Internet Trends

5. The Internet Today • The Internet is a network of computers • More precisely a network of networks of computers • Consists of the hardware + a set of protocols • Main protocol is TCP/IP • Plus some others Internet Trends

6. Internet Physical Layout Internet Trends

7. Internet Protocols Internet Trends

8. Addressing and Domains • Computers on the network are typically either servers (e.g. Web Servers) or clients • Servers are identified by Internet addresses • Currently 32-bit number • About 4 billion separate addresses are available • Separated into 4 8-bit segments • Identify domains, leftmost byte is the broadest Internet Trends

9. Domain Name Suffixes Internet Trends

10. Internet Next Generation • Current version of TCP/IP is IPv4 • More than 100 countries are on the Internet • Over 100 million nodes • Internet address space is running out • There are assigned but underused domains • IETF (Internet Engineering Task Force) has issued the new spec (August 10, 1998, Toronto) • IPv6 also known as IPng Internet Trends

11. IPv4 vs. IPv6 IPv6 will provide • Expanded Routing and Addressing Capabilities • increases the IP address size from 32 bits to 128 bits • A new type of address called a "anycast address“ • allows nodes to control the path which their traffic flows • New Header Format • Although IPng addresses are four times longer than the IPv4 addresses, the IPng header is only twice the size of the IPv4 header • some IPv4 fields are dropped or made optional Internet Trends

12. IPv6 Additional Capabilities • Improved Support for Options • more efficient forwarding • less stringent limits on the length of options • greater flexibility for introducing new options • Quality-of-Service Capabilities • enable the labeling of packets belonging to particular traffic "flows" • Authentication and Privacy Capabilities • extensions to provide support for authentication, data integrity and confidentiality Internet Trends

13. Internet Broad Trends • Multimedia/entertainment • Communications • Computing Trend 1: Continued merging of three major areas of information technology Internet Trends

14. Internet Broad Trends • Broadband • WiFi • Mobile Telephony • Bluetooth Trend 2: Continued increase of speed and mobility of access Internet Trends

15. Internet Multimedia • Impacts e-commerce • Customers who watch videos are 19% percent more likely to buy than those who just look at pictures • Video on demand • Movie industry is moving films from theaters to DVD and cable • Download could undermine that • Movie industry is likely to offer paid download soon Internet Trends

16. Internet Multimedia • MP3 peer to peer model turned to paid download • Napster was shut down • But Apple iTunes (99 ¢/song) is a huge success • New business model experimentations • ESPN Motion (60-90 second video reports) • RealOne OpenPass • Online gaming Internet Trends

17. Internet Communications • Chat services impact e-commerce • Land’s End study: new customers are 70% percent more likely to buy if they talk to a sales rep via on-line chat • Traditionally computing devices are increasingly incremented with communications capabilities • PDAs, laptops with mobile internet access • And vice versa • Mobile phones with built-in browser, PDA, photo editing Internet Trends

18. Internet Computing • Computing power has been going up, price down • Moore’s law: number of transistors per silicon chip doubles every 18 months, is holding up • But computing power is underutilized • Average server runs at 30% of capacity • On every 1$ companies spend on computing they spend $3 on operating costs • New paradigms are needed to better utilize today’s computing technology Internet Trends

19. Internet Computing • Blade computers • Servers reduced to the size of a legal pad • Stacked up on shelves • Reduce operating costs and electricity bill by 25% • Grid computing • Works both on the Internet and private networks • Software allocates tasks over the network • Searches for available computing capacity • Same paradigm as the electrical grid but for computing power Internet Trends

20. Internet Computing • Throughput Computing -Sun Microsystems • Manufacture the capacity of 8 servers on a single silicon chip • Ideal for Web servers • 500 million to 1 billion transistors per chip • Planned for 2005 in form of a blade server • Flexible computers – TRIPS • Chip allows itself to be reprogrammed by the server • E.g. to switch from Web page optimization to an on-line game optimized arrangement Internet Trends

21. Broadband • Crucial to achieve the full commercial potential of the Internet • US households with broadband access will jump 40% this year to 25 million • Customers with broadband buy 30% more online than narrowband users • Broadband connections are always on • After signing up for broadband, users spend two-thirds more time online (2 hours per day) • There is talk of the “broadband lifestyle” Internet Trends

22. WiFi • IEEE specification for wireless product interoperability • IEEE 802.11 (802.11a and 802.11b) • WiFi Alliance certifies products • More than 200 companies and over 900 products • Radio frequency operation • 5 GHz for 802.11a, 2.4 GHz for 802.11b • LAWN • Wireless LAN (a group of specifications) • Uses 802.11 radio frequency connections among nodes instead of wires Internet Trends

23. Bluetooth • Cable replacement technology • Initiated by Ericsson (Swedish mobile phone manufacturer) • Named after Viking king Harald (liked blueberries) • Small inexpensive (~$5) radio chip plugged on or manufactured into any electronic device • Bluetooth use is extended to non-computing devices • Mobile phone to printer, printer to printer, mobile phone to headphone etc. • Commercial ideas: notifying cargo, refrigerator ordering food over the Internet etc.

24. Economic and Social Implications • Manufacturing is in decline in developed countries • Low labor costs in developing countries makes manufacturing over-expensive • Which urban areas are booming? • Richard Florida investigated this • The Rise of the Creative Class Internet Trends

25. Economic and Social Implications • Top 10 metropolitan areas in the U.S. 1- San Francisco 2- Austin 3- Boston 3- San Diego (tie) 5- Seattle 6- Raleigh-Durham 7- Houston 8- Washington-Baltimore 9- New York 10- Minneapolis-St. Paul 10- Dallas (tie) Internet Trends

26. Economic and Social Implications • Companies follow the workforce not the other way round • U.S. population is ageing • There is a shrinking workforce • U.S. Census: 50 largest metro areas had fewer young people (25 to 34 years old) in 2000 than in 1990 • Trend reversed: companies are going where the educated young adults are not the other way round Internet Trends

27. Economic and Social Implications • The decisive factor is the social and cultural environment • Young adults appreciate lifestyle over money • They seek lifestyle, culture and diversity • “Old school” vs. “new school” • Building football stadiums is old school • Attracts mostly blue collar classes but those are shrinking • Universities, art movie theaters, book shops, cafes, ethnic restaurants, gay-friendly culture are “new school” Internet Trends

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