Markeing

1. 3-1
Elias M. Awad
Third Edition
ELECTRONIC COMMERCE
From Vision to Fulfillment
© 2007 Prentice-Hall, Inc
ELC 200 Day 9

2. 3-2© 2007 Prentice-Hall, Inc
Agenda
• Questions from last class?
• Assignment 2 Corrected
– 12 A’s, 3 B’s, 2 C’s, and 1 non-submits
• Assignment 3 Posted
– Due March 1 @ 12:35PM
• Quiz 2 will be on March 8
– Chapter’s 4, 5, 6
– 20 M/C @ 4 Points each
– 4 short essays @ 5 Points each
– 1 extra credit question for 5 Points
– 50 mins, Open Book, Open Notes
• Possible Extra Credit questions
– Where’s my name?
– 1st
dot com IPO
– Who’s this guy? >>>
• Finish Discussion on Hosting your Web Site

3. 3-3
Elias M. Awad
Third Edition
ELECTRONIC COMMERCE
From Vision to Fulfillment
© 2007 Prentice-Hall, Inc
Hosting Your Web Site

4. 3-4© 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

5. 3-5© 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
• Domain name: a company’s identifier in cyberspace

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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
– Communications - Typically a T1 or fractional T1 line:
$8,000 to $12,000 per year
• http://www.speakeasy.net/business/
– 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

7. 3-7© 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.

8. 3-8© 2007 Prentice-Hall, Inc
Web Site Infrastructure

9. 3-9© 2007 Prentice-Hall, Inc
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

10. 3-10© 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
– Developer’s hosting
– Web hosting only
– Industrial-strength hosting
• http://www.top-10-web-hosting.com/?wcw=google

11. 3-11© 2007 Prentice-Hall, Inc
From you to the ISP
• Winsock 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

12. 3-12© 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

13. 3-13© 2007 Prentice-Hall, Inc
Packets, Routers, and Routes on
the Internet

14. 3-14© 2007 Prentice-Hall, Inc
Internet Service Providers

15. 3-15© 2007 Prentice-Hall, Inc
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

18. 3-18© 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

19. 3-19© 2007 Prentice-Hall, Inc
ISP Optional Service
• World Wide Web server
• File transfer protocol (FTP)
• Internet relay chat (IRC): a text-based
chat service, where users connect to a local
server as part of a larger network of IRC servers
• News Server
• HTTP proxy service
• A minimum of two servers of each type are
needed to launch a start-up ISP

20. 3-20© 2007 Prentice-Hall, Inc
Technical Services
• A T1 line is a digital carrier line that transmits
digital signals at 1.544 Mbps
• A T3 line transmit digital signals at 44,736 Mbps
• 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

21. 3-21© 2007 Prentice-Hall, Inc
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 Ask
On 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

24. 3-24© 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 each ISP uses to the Internet
• What is the number of employees the ISP has and the range
of service it offers?

25. 3-25© 2007 Prentice-Hall, Inc
ISP Rating Sites
• http://reviews.cnet.com/ISP_buying_guide/4520-7606
• http://www.webhostingratings.com/
• http://www.hostcompare.com/index.htm
• http://www.webhostinginspector.com/

26. 3-26© 2007 Prentice-Hall, Inc
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
• Speed is what everyone wants

27. 3-27© 2007 Prentice-Hall, Inc
Services to Expect From ISP
• Register you domain name
• Capture and forward your e-mail
• Host your Web site
• Provide technical and managerial support
• Give on-the-road support

28. 3-28© 2007 Prentice-Hall, Inc
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

29. 3-29© 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

30. 3-30© 2007 Prentice-Hall, Inc
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

31. 3-31© 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

32. 3-32© 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?

33. 3-33© 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

34. 3-34© 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.

35. 3-35© 2007 Prentice-Hall, Inc
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

36. 3-36© 2007 Prentice-Hall, Inc
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.

37. 3-37© 2007 Prentice-Hall, Inc
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

38. 3-38© 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.

39. 3-39© 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

40. 3-40© 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

41. 3-41© 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