Transcript ppt - Cornell University

eBusiness: the final frontier
Professor Ken Birman
Dept. of Computer Science
Cornell University
A New World!
 Networks everywhere
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Soon, wireless connections, even to very simple
devices, based on the Bluetooth standard
“Everything can talk to everything else”
 Business gaining efficiencies by eliminating
paper in favor of b2b solutions
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Nobody was fond of paper; it won’t be missed
And computers are very fast offering big gains in
efficiency, flexibility
 Productivity (per employee) is rising
Understanding It
 But understanding these trends isn’t easy
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Overwhelmed by excess of information
Breathless pundits enthuse over the most minor
new features
Company valuations rocket, then crash. Market
volatilities are setting records
 Is the new networked world “rational,” or some
sort of a gambling casino?
Our Goals
 In this part of the course:
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Learn about business models for the network
Study e-risks to e-commerce, role of business
people in technology decision making
Understand technology issues underlying risks and
business role in technical decision-making
 Today:

Focus on how the Internet works and categories of
businesses one finds in the e-business sector
Questions
 How well does the Internet work and
what can we do when it doesn’t work?
 How rapidly is it growing and where is
the growth occurring?
 What sorts of business activities exist on
and around the Internet?
A network is like a “mostly
reliable” post office
Inside the Network
A “router”
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Connect to
rns.com
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Inside the Network
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Connect to
rns.com
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Inside the Network
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Connect to
reuters.uk
Connect to
rns.com
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Inside the Network
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Connect to
reuters.uk
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Inside the Network
Connect to
reuters.uk
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Success!
Inside the Network
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Success!
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Caveats
 Names like “rnets.com” are turned into
numbers like “128.38.47.62”
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This is because computers work best with fixedlength numeric data
These numbers actually fit into a “32-bit” word
Think of things like this as minor technical detail
that you need to know when setting up your
computer but that have no real significance in the
larger picture
 Information sent in packets, which have a
maximum size – we call it “packet switching”
Looks Like a Phone
System
 … but it isn’t!
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Telephone systems have “real” circuits from you to
me and provides guarantees of reliability
Internet chops each operation into little packets
that flow independently

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More like sending a letter than making a phone call
Routes can change, although this is infrequent.
The packets aren’t guaranteed to get there!

Postman gets irritable and tosses out some mail…
Internet vs.
Telephony
Features
Non-Features
Internet
 Packet-oriented
 Source, dest addresses
 Packets routed independently
 Best effort performance and
reliability, no guarantees
 Shared router resources
 Reliability (except “on average”)
 Quality of service (e.g. expected
performance)
 Connections (although TCP can give
the impression of a connection)
Telephone
 Circuit-oriented
 Fixed speed and reliability
guarantees
 Sharing of switch resources: while a
call is in progress, resources are tied up
 High speed: phone circuits come in a
small number of “speeds”
 Packets: phone circuits carry
continuous stream of bits
Internet Stuff That
doesn’t Work
 You can send Internet data on a phone line,
but are limited to about 56kb.

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This is about 200 times slower than road-runner!
Need a computer at the other end to receive it
 You can send voice over an Internet
“connection” but
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First must turn it into a digital representation
Since it isn’t reliable you often get drop-outs
And since latency varies a lot you may get
unexpected pauses
Why isn’t the Internet
totally reliable?
 Links can corrupt messages

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Rare in the high quality ones on the Internet
“backbone”
Relatively common with wireless connections
 Routers can get overloaded
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When this happens they drop messages
As we’ll see, this is very common
 Your computer automatically resends lost
packets to hide such events from you
Some terminology
 A program is the code you type in
 A process is what you get when you run it
 A message is used to communicate between
processes. Arbitrary size.
 A packet is a fragment of a message that might travel
on the wire. Variable size but limited, usually to 1400
bytes or less.
 A protocol is an algorithm by which processes
cooperate to do something using message exchanges.
More terminology
 A network is the infrastructure that links the
computers, workstations, terminals, servers, etc.
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It consists of routers
They are connected by communication links
 A network application is one that fetches needed data
from servers over the network
 A distributed system is a more complex application
designed to run on a network. Such a system has
multiple processes that cooperate to do something.
How do distributed systems
differ from network
applications?
 Distributed systems may have many components but
are often designed to mimic a single, non-distributed
process running at a single place.
 “State” is spread around in a distributed system
 Networked application is free-standing and centered
around the user or computer where it runs. (E.g.
“web browser.) Distributed system is spread out,
decentralized. (E.g. “air traffic control system”)
What about the Web?
 Browser is independent: web servers don’t keep track
of who is using them. Each request is self-contained
and treated independently of all others.
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Cookies don’t count: they sit on your machine
And the database of account info doesn’t count either… this is
“ancient” history, nothing recent
 ... So the web has two network applications that talk
to each other
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The browser on your machine
The web server it happens to connect with… which has a
database “behind” it
You and the Web
Cookie identifies this
user, encodes past
preferences
HTTP request
Web browser with
stashed cookies
Database
Web servers are kept current by the
database but usually don’t talk to it
when your request comes in
You and the Web
Web servers immediately
forget the interaction
Reply updates cookie
You and the Web
Web servers have no
memory of the interaction
Purchase is a “transaction”
on the database
Thought Question
 When I shop on Amazon.com, I build up a
“shopping cart” containing my tentative
purchases
 Where does it live?
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In the server that handles billing?
In the web server?
On my computer?
 Answer: on my computer, in a cookie
Internet Growth
Trends
 ARPANET origins: just a few machines
 1987-1985 “NSFnet”
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First large scale deployment of Internet Technologies
Privatized in 1985
Now people talk about the “Next Generation Internet” but in
fact, there is just one Internet
Internet 2: Academic research project to study management
and behavior of gigabit network links
 Today growing at 10-20% per month
 Even machines not connected to “the Internet” use
Internet technology to talk to each other!
Today’s Internet
 Hundreds of millions of users
 Works well for web, email, file transfer
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Not so well for audio or video
And totally unacceptable for telephony
 Not many “critical” uses
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Critical systems tend to run on isolated,
smaller “intranet” architectures
Tomorrow’s Internet
 Billions, then tens of billions of
computers and very small devices
 Wide range of connectivity models
 And increasingly critical uses
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Air traffic control, medical systems, banking,
all sorts of eBusiness uses, military systems,
disaster response…
Open question: audio, video, telephony?
30% of North American Adults
Shop on the Web (Jan 1998)
Jan 98
35
30
25
Sep 95
Jan 97
20
15
10
5
0
Use WWW in last month
Have searched for specific product info
Searched WWW before a purchase
Used WWW to make a purchase
Source: Dennis A. Robertson, CTO, Motorola (1998)
"Source: Internet Software Consortium (http://www.isc.org/)".
Internet Revenues ($B)
25
20
Total
15
Access
Advertising
10
Subscription
5
Online
Purchase
0
1997
1999
2001
Source: Dennis A. Robertson, CTO, Motorola (1998)
Internet Backbone
BGP
BGP
BGP
Categories of
e-Business
 Backbone service provider (BSP)
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Provides highest speed data transfer
Normally, a major long-distance phone
company like MCI, Sprint, AT&T
Its customers are independent service providers
like Road Runner
 They pay steep fees to have a thick pipe
connecting their regional network
to the backbone

6
5
4
3
Billions $
2
Source: International Data Corp
1
0
1998
2000
2002
Independent Service
Provider
BGP
BGP
BGP
Categories of
e-Business
 Backbone service provider (BSP)
 Independent service provider (ISP)
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Examples are RoadRunner, Lightspeed, MSN
Customers connect by some form of modem
They charge for patterns of use, speed,
amount of web space available to users
There are hundreds or thousands of them
40

35
Inter@
30
25
20
15
10
Source: Inter@ctive Week (7-Jun-99)
The industry standard (22-Mar-99)
Techmall (11-Apr-99)
5
0
1997 1999 2001 2003
The
industry
standard
Techmall
Categories of
e-Business
 Backbone service provider (BSP)
 Independent service provider (ISP)
 Application service provider (ASP)
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They take some function businesses used to handle
internally, like human resources or supplier
relationships (order processing)
Using network connections they take this over for
their customers
Customer “sends out the laundry”
Source: www.infotechtrends.com
10
9
8
7
6
5
4
3
2
1
0
Billions $
2000
2002
2004
Lots of Companies do
Payroll…
Payrolls-R-Us Wants To Do
Payroll for Everyone
ASP
Categories of
e-Business
 Backbone service provider (BSP)
 Independent service provider (ISP)
 Application service provider (ASP)
 b2b or eCommerce player
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Companies that do business on the web
Topic of Professor Conway’s lectures
$35B in 2003
(Qwest Communications, 6-Aug-99)
My Web Site Talks To Yours
B2B Interactions
Categories of
e-Business
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Backbone service provider (BSP)
Independent service provider (ISP)
Application service provider (ASP)
b2b or eCommerce player
Edge-caching or web hosting
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They manage web pages for other companies
An emerging need because heavily visited web sites
get overloaded unless data is “replicated”
$4.4B in 1999, $14.4B in 2003
(Yankee Group, 12-Jul-99)
Send your Web Pages to
Akamai, and They Handle
Web Requests For You
AKAMAI
Web Hosting
Categories of
e-Business
 Switch and router vendor (CISCO, Nortel,
Lucent)
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They sell the boxes that run the network
But they don’t run the network
30
25
20
15
10
Source: Web Week (Nov. 1996)
Network world (Sept. 1999)
5
0
1996 1998 2000 2002
Whole
market
High-end
devices
Categories of
e-Business
 Switch and router vendor
 Computer vendor
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They sell the boxes that make use of the
network
Categories include servers, desktop, laptop,
PDA, small devices
Biggest growth will be in the smallest
devices: think small, real, active…
Categories of
e-Business
 Switch and router vendor
 Computer vendor
 Platform vendor
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They sell software on which applications run
Microsoft Windows, Linux, Java (a language that
also is a platform), .NET (like Java),
The term means “an extensible enabler” – the
platform makes it easy for some class of
applications to be developed and operated
Categories of
e-Business
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Switch and router vendor
Computer vendor
Platform vendor
Middleware vendor
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Extends the platform with features the primary
company didn’t address
Makes sense because huge companies shy away
from some very large “niche” markets
For example, “message oriented middleware”
Message oriented middleware market: $358M in 1997, $2.247B in 2002
Total middleware market $2.3B in 1997, $4.9B in 2002
(Gartner Group, 12-Jul-99)
Categories of
e-Business
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Switch and router vendor
Computer vendor
Platform vendor
Middleware vendor
Application vendor
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They sell the stuff we really use
Examples are Microsoft Office, SAP, PeopleSoft,
Lotus Notes
Categories of
e-Business
 .COM web sites
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E-Bay, TCWC: auctions, wine…
Amazon.com: “catalog sales”
eMaiMai: ultimate resource for products from mainland China
AskJeeves: super search engine (plus advertising)
www.subaru.com – my first choice for subaru models & specs
www.irs.gov – typical of a new generation of web-based
government service applications: “the future of government”
 These forms of eCommerce are a topic of other
lecturers… you won’t hear much on it from me!
Summary?
 E-Business is rapidly turning into a multi-hundred
billion dollar market

Lots of “niches” within the overall picture
 Growth rates are staggering and will continue


For a while, at any rate
Increasingly dominated by rollout of small devices
 Many business models

Some discredited but others make good sense
 Better success with technology and with old-business
players; “new age” web sites often flop
Reality Check
If we could shrink the Earth’s population to a village of precisely 100 people…
with all existing human rations remaining the same, it would look like this:
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There would be 57 Asians, 21 Europeans, 14 from the Americas (North and South) and 8
Africans
51 would be female, 49 male
70 would be non-white, 30 white
70 would be non-Christian, 30 Christian
50% of the world’s wealth would belong to only 6 people. All would be Americans
80 would live in substandard housing
70 would be illiterate
50 would suffer from malnutrition
50 would never have made a telephone call
1 would be near death, 1 near birth
Only 1 would have a college education
2 would own a computer and 1 would have access to the Internet
Source: Dr. Brian H. Spitzberg, School of Communication, San Diego State University