E-Commerce Infrastructure: The Internet, Web, and Mobile Platform

1. E-Commerce Infrastructure: The Internet, Web, and Mobile Platform Chapter 3

2. Learning Objectives • Discuss the origins of the Internet • Identify the key technology concepts behind the Internet • Discuss the impact of the mobile platform and cloud computing • Describe the role of Internet protocols and utility programs • Explain the current structure of the Internet • Understand the limitations of today’s Internet

3. Questions • What is the Internet? • How is it different from other computer networks?

4. Answer

5. Internet vs. Web • The Internet is an interconnected network of thousands of networks and millions of computers (sometimes called host computers) linking businesses, educational institutions, government agencies, and individuals • The Internet provides approximately 2.56 billion people around the world with services such as e-mail, apps, newsgroups, shopping, research, instant messaging, music, videos, and news • The World Wide Web, or Web for short, is one of the Internet’s most popular services providing access to billions of Web pages that contain text, multimedia content, services, and hyperlinks to other pages

6. The Evolution of the Internet • Innovation phase (1961-1974) • Fundamental building blocks are conceptualized and implemented • Linked mainframe computers on different college campuses • Institutionalization phase (1975-1995) • Large institutions such as the DoD and NSF provided funding and legitimization • Use steadily increased • Commercialization phase (1995-present) • Private corporations began to take over and expand both the Internet backbone and local service to ordinary citizens • Created an online marketplace

7. Development of the Internet Timeline (Table 3.2) • Some examples of key developments include: • 1961, concept of packet switching is created • 1969, first packet-switched message is sent on ARPANET from UCLA to Stanford (Internet born) • 1972, e-mail is invented • 1974, TCP/IP invented • Late 1970s, PCs are invented • 1984, Domain Name System (DNS) system introduced • 1989, the Web is created • 1993, first graphical Web browser (Mosaic) • 1994, first banner ad (birth of e-commerce) • 1995, NSF privatizes the backbone (fully commercial Internet born)

8. Key Internet Technology Components • Packet switching • TCP/IP and domain names • Internet architecture and applications • Client/server architecture • Mobile platform • Cloud computing

9. Packet Switching • Packet switching is a method of slicing digital messages into discrete units called packets, sending the packets along different communications paths, and then reassembling the message at the destination

10. TCP/IP • While packet switching was an enormous advance in communications capacity, there was no universally agreed upon method for breaking up digital messages into packets, routing them to the proper address, and then reassembling them into a coherent message • The answer was to develop a protocol • The transmission control protocol (TCP) establishes the connections among sending and receiving machines, and makes sure that packets sent by one computer are received in the same sequence by the other, without any packets missing • The Internet protocol (IP) provides the Internet’s addressing scheme

11. IP Addresses • An IPv4 Internet address is a 32-bit number that appears as a series of four separate decimal numbers marked off by periods, such as 64.49.254.91 • Each of the four decimal numbers can range from zero to 255 • This IPv4 addressing scheme supports up to about four billion unique addresses (2 to the 32nd power) • A new version, called IPv6, was developed to expand the number of addresses available • It uses 128-bit addresses so it can support up to 3.4 x 1038 addresses, many more than IPv4

13. Domain Names • Most people cannot remember 32-bit numbers, so an IP address can be represented by a natural language convention called a domain name • The Domain Name System (DNS) allows expressions such as drake.edu to stand for a numeric IP address • Web pages use domain names as part of their unique Uniform Resource Locator (URL)

14. Uniform Resource Locators (URLs) • An example URL would be: • http://faculty.cbpa.drake.edu/strader/is194.htm • This can be interpreted as: • protocol://domain/path/file.extension • Domains are classified most commonly as either .com, .org, .net, .edu, .gov, .mil • Domains outside the US often include a country classification such as .uk (United Kingdom) or .ca (Canada) at the end of the URL

16. Easy to expand capacity • Less vulnerable than centralized computing architectures • Processing load is balanced over many powerful smaller computers

17. The New Client: The Mobile Platform • In a few years, the primary means of accessing the Internet worldwide will be through highly portable smartphones and tablet computers, and not traditional desktop or laptop PCs • In 2013, there are an estimated 4.3 billion worldwide mobile phone users, with 247 million in the US • Smartphones are disruptive because they do not use the same processors, operating systems, and storage devices that PCs use • The mobile platform has profound implications for e-commerce because it influences how, where, and when consumers shop and buy

18. The Internet “Cloud Computing” Model: Software and Hardware as a Service • Cloud computing refers to a model of computing in which firms and individuals obtain computing power and software applications over the Internet • Traditionally, users would purchase hardware and then install software on their own machines • Currently, cloud computing is the fastest growing form of computing, with an estimated market size in 2013 of over $130 billion

19. Cloud Computing Benefits and Risks • Radically reduces the cost of building and operating Web sites because the necessary hardware infrastructure and services can be licensed from Internet service providers at a lower cost • Individuals can use much less-expensive tablet computers or smartphones for e-commerce activities • Corporations can significantly cut their hardware and software costs (infrastructure costs), and they don’t have to hire a large IT staff • A risk is that firms may become totally dependent on their cloud service providers

20. Who Governs the Internet? • It is often claimed that the Internet is governed by no one, but this is not entirely true • The Internet is tied to a complex web of governing bodies, national legislatures, and international professional societies • Among the governing bodies of the Internet are: • The Internet Corporation for Assigned Names and Numbers (ICANN) • The Internet Engineering Task Force (IETF) • The Internet Society (ISOC) • The Internet Governance Forum (IGF) • The World Wide Web Consortium (W3C)

21. Changes in Internet Governance • The US Department of Commerce (DoC) originally created ICANN with the intent that it take temporary control of the Domain Name System and the 13 root servers that are the heart of the Internet addressing scheme • Beginning in 2000, ICANN and the DoC suggested they would turn over control of the DNS to some unspecified international body • The US changed its policy in June 2005 when it was announced that the DoC would retain oversight over the root servers • In 2014 it was announced that the US is again considering passing control of ICANN to a global governance organization • What are the advantages and disadvantages of making this change?

22. Limitations of the Current Internet • Much of the Internet’s current infrastructure is several decades old. It suffers from a number of limitations, including: • Bandwidth limitations • Quality of service limitations • Network architecture limitations • Wired Internet • One proposed solution is Internet2 which is an advanced networking consortium of more than 350 member institutions all working in partnership to facilitate the development, deployment, and use of revolutionary Internet technologies

23. The Internet of Things (IoT) • Internet technology is spreading beyond the desktop, laptop, and tablet computers, and beyond the smartphone, to consumer electronics, electrical appliances, cars, medial devices, utility systems, machines of all types, and clothing • IPv6 provides sufficient addresses to connect a vast array of new devices • Predictions indicate that there could be up to 100 billion uniquely identifiable objects connected to the Internet by 2020 • What are the benefits and risks for the IoT?