Transcript Open - Jerry Post.com

E-Commerce
Web Hosting Options
Jerry Post
Westgate Management Development Center
Eberhardt School of Business
University of the Pacific
1
Retail Business Basics
Government
Marketing
Taxes
Shipping
Analysis
Registration
Sales
Receipts
Purchases
Create business
Accounting
Payments
2
Credit Card Processing
Settlement Processor
Merchant Bank
Acquiring Bank
Transactions
Transactions
Issuing Bank
Card
Validation
Card Information
Amount
Retail Account
Card Number
And Expiration
Retail Store/Site
Customer
3
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
4
Web Site Basics
Log file
Page
Program
Code
Database
Images
Server
HTML
Page
Consumer
5
Browser Cookies
Consumer
Server
First page/login
Display page
Save cookie file
New page request
Send cookie
Validate user
Create cookie (ID)
Generate page
Use cookie ID to identify user
Generate new page
Note: cookies can only be returned to one site/domain.
Companies Never even see cookies generated by other sites.
6
Internet Connections
Network
service
provider (NSP)
T1: 1.544 Mbps
T3: 44.736 Mbps
OC3: 155.52 Mbps
OC12: 655 Mbps
Backbone
network
Internet
service
provider (ISP)
Phone
company
Individual
Cable
company
Phone
company
Dial-up: 33.3 - 56 Kbps
ISDN: 128 Kbps
DSL: 256 Kbps - 6 Mbps
Cable: 1 to 10 Mbps
T1: 1.544 Mbps
T3: 44.736 Mbps
Company
Web site
7
Capacity Calculations
1,544,000 bits Bytes 86,400 sec onds 30 days
*
*
*
 500 GBytes / month
sec ond
8 bits
day
month
T1
T3
1.544 mbps
45 mbps
Connectionbps
Dial-up
33k
T1
1.544m
T3
45m
T1: 1.544 mbps
$1600/month $1000/mbps
$10,000/month $222/mbps
50kB file # dial-up users
cost
cost/mbps GB/month cost/GB/month
12.121
1
$20
$606
11
$1.82
0.259
47
$1,600
$1,036
500
$3.20
0.009
1364 $10,000
$222
14580
$0.69
T3:45 mbps
OC-12:655 mbps
8
Bandwidth
Business connection bandwidth
sets number of users.
Web Server
9
Economies of Scale
$/m bps
Internet Bandwidth Economies of Scale
1800
1600
1400
1200
1000
800
600
400
200
0
0
10
20
30
40
50
m bps
10
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
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Frequency Spectrum
ELF
VLF
100
LF
30K
MF
300K
HF
3M
VHF
30M
UHF
300M
Microwave Optical
3G
10G
Hertz
http://www.fcc.gov/oet/info/database/spectrum/Welcome.html
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Simple HTML Pages
Main Web Page
Categories
…
Category 1
Category 2
Category 3
Product
…
Product
…
Product
…
Product 1
Description
Price
Photo
photo
…
Product 2
Description
Price
Photo
photo
…
Product 3
Description
Price
Photo
photo
…
Product n
Description
Price
Photo
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Buy-Me Button
Merchant Web site
Buy Me
Product
Description
Price
Card Processor Site
Shopping Cart
Item
Price
…
…
Total
Check Out
Credit Card Data
Name
Address
Phone
Card Number
Submit
Notify merchant
Customer
Notification
(Accept/Reject)
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 Products
Cameras, Digital, Brand
Vendor 1
Vendor 2
Vendor Transfer
Description
Price
Scanned image
Contact info
Vendor 3
Transaction Processing
Amazon.com handles credit
Sends order info to merchant
Merchant ships item to consumer
Consumer
Product search
Choose vendor
Pay for item
16
Virtual Malls
Directory of Shops
Product category
Vendor 1
Vendor 2
Merchant Site
Products
Sales
 Essentially a marketing agreement
 The “mall” provides a directory to merchants
 The merchant site runs on a different server
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Web Commerce Servers
Your Web site
Products
Shopping cart
Sales
Customers
Merchants
Commerce Server Shell
Load database
Images
Database
Descriptions
Prices
Customize site
Web servers
Web/Commerce Hosting Company
18
Application Service Provider
Business Application
e.g., Accounting
Store data
Analyze data
Facilitate company
interaction
Businesses that lease the use of the application
19
Web Server Platforms




Linux/UNIX clone
Microsoft Windows NT/2000
Sun Microsystems + Oracle 8i
IBM WebSphere
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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
Web page
request
Enterprise Web Server cluster
Requests handled
by available server
Web page built from
HTML
Images
Data
ODBC + ASP
Database Server cluster
26
Sun/Oracle 8i
Web page
request
Sun Server
Oracle DBMS Software
Data
Images
HTML pages
Java code to link together
Transactions and
connectivity
handled by Oracle
Scalability provided mostly with bigger server.
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IBM WebSphere
Web page
request
WebSphere software
Hardware can be IBM,
Sun, or Intel.
Traditional IBM machine
• Database
• Transactions
• Message Queue
• Scalability
IBM S/390
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Hosting on Shared Servers
ISP Server
Transfer to ISP
You design the site.
•Server is shared by other firms
•Performance outside your control
•Capacity is limited
Hundreds of
customers for
other businesses
•Data transfer is limited
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Server Co-Location
Customer
Development
•You purchase or lease a
server solely for your use that
is installed at the ISP location.
ISP location
•You usually have physical
access.
•Pay space and data transfer
charges to ISP
30
Run Your Own Server
ISP
Customer
Development and
Web site management
router
T1: monthly lease
• You have total control
router
Connect to your
other computers.
• You pay monthly lease to
phone company and ISP
• You can connect to internal
computers
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Summary: Costs
Costs
Simple HTML
Single Unit
Commerce
Site
Shared
Server
CoLocation
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
Management
Minimal site
updates
Site/product
updates
Product/catal
og updates
Site
updates
Pay, or
manage
server
Complete
server
management
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