E-Commerce Infrastructure Lecture Notes

CLO2: Analyze the Needs of Technology Infrastructure and E-commerce Development for Online Business Environment

Updated: 08 August 2022
Course: ITE2513 – INTERNET & E-COMMERCE
Confidential: For Internal Circulation Only

Chapter 2: E-Commerce Infrastructure

The Internet: Technology Background

Definition

  • Internet: An interconnected network comprising thousands of networks and millions of computers linking businesses, educational institutions, government agencies, and individuals.
  • World Wide Web (Web): A prominent service of the internet providing access to an extensive number of web pages, possibly in the billions or trillions.

Web Pages

  • Web pages are documents created in HTML (Hypertext Markup Language) that contain text, graphics, audio, video, and other objects.
  • These pages include “hyperlinks,” which allow users to easily navigate from one page to another, typically using web browser software.

The Evolution of the Internet

Timeline

  • 1961—Present: The history of the internet can be segmented into three significant phases:

Phases of Evolution

  1. Innovation Phase (1961 – 1974)

    • Fundamental building blocks of the internet were conceptualized and actualized in hardware and software.
    • Key components include packet-switching hardware, a communications protocol (TCP/IP), and client/server computing.
    • Initially, the internet aimed to connect large mainframe computers across different college campuses, enabling one-to-one communication that was previously managed via telephone systems or private networks owned by major computer manufacturers.

  2. Institutionalization Phase (1975 – 1995)

    • Large institutions such as the U.S Department of Defense (DoD) and the National Science Foundation (NSF) funded and legitimized the developing internet technology.
    • The DoD enhanced the internet into a military communications system (ARPANET) capable of surviving nuclear conflict.
    • In 1986, NSF began expanding the civilian internet, referred to as NSFNET.

  3. Commercialization Phase (1995 – Present)

    • Government agencies encouraged private companies to expand the internet's backbone and local services to non-students worldwide.
    • By 2000, the utility of the internet extended significantly beyond military and academic use.

Packet Switching

Definition

  • Packet Switching: A method of splitting digital messages into packets for transmission, routing them via different pathways, and reassembling them upon arrival at the destination.

Process Overview

  • Messages are divided into packets (discrete units) that contain addresses, sequencing details, and error control data.
  • A Router: A specialized computer that interconnects networks and directs packets to their final destination using routing algorithms.

Example Illustration

  • Conversion Process of a Text Message:
    • Original text is digitized into bits.
    • Bits are divided into packets with header information (destination, total message size, and packet count).
    • Acknowledgment of packet receipt generates latency—a delay in information transmission.

Transmission Control Protocol / Internet Protocol (TCP/IP)

Overview

  • Transmission Control Protocol (TCP): The core protocol for internet communications that manages connections between computers, handles packet assembly, and reassembly.
  • Internet Protocol (IP): Responsible for addressing and delivering packets across the network.

TCP/IP Architecture

  • Divided into Four Layers:
    1. Network Interface Layer
    2. Internet Layer
    3. Transport Layer
    4. Application Layer
  • Key protocols include HTTP, Telnet, FTP, and SMTP at the application layer.

Internet (IP) Addresses

Versions

  • IPv4: A 32-bit address format represented as four separate numbers (e.g., 64.49.254.91), allowing around 4 billion unique addresses.
  • IPv6: An advanced 128-bit address capable of accommodating up to 1 quadrillion addresses, addressing the limitations of IPv4.

Structure

  • In Class C networks, the first three numbers represent the local area network; the final number identifies a specific computer.

Domain Names, DNS, and URL

Definitions

  • A Domain Name: A human-readable address for an IP (e.g., cnet.com).
  • Domain Name System (DNS): Translates numeric IP addresses into user-friendly domain names.
  • Uniform Resource Locator (URL): The address format used by web browsers to locate content, typically incorporating a domain name.

Client/Server Computing

Model Description

  • A computing model where personal computers (clients) are connected to one or multiple servers.

Functionality

  • Clients execute complex tasks (graphics display, large file storage) locally, while servers provide shared resources like file storage, applications, and utility programs.

Cloud Computing

Definition

  • A computing model enabling firms to access computing power and software over the internet (e.g., Google Apps).

Implications for E-commerce

  • Reduces operational costs significantly by allowing businesses to license infrastructure and software as services instead of purchasing.

Other Internet Protocols and Utility Programs

Major Internet Protocols

  • HTTP: Protocol for web page transfers.
  • SMTP: Protocol for sending emails to servers.
  • POP3: Protocol for mail retrieval from an internet server.
  • IMAP: Advanced protocol for organizing and filtering email before download.
  • FTP: Protocol for file transfers between a server and client.
  • Telnet: Protocol for remote login to computers.
  • SSL/TLS: Protocols securing communications between clients and servers.
  • Ping: A utility for checking connection status.
  • Tracert: Utility tracing the path of messages sent to remote computers.

Future Internet Infrastructure

Layered Concept

  1. Network Technology Substrate Layer: Composed of telecommunications networks and protocols.
  2. Transport Services Layer: Houses the TCP/IP protocol.
  3. Middleware Services Layer: Provides essential functions connecting applications and networks (e.g., security, authentication).
  4. Applications Layer: Contains client applications.

Internet Network Architecture

Backbone

  • Comprised of high bandwidth fiber optic cables facilitating rapid data transmission worldwide, with bandwidth capacities ranging from 155 Mbps to 2.5 Gbps.

Bandwidth

  • Defined as the rate of data transfer over a medium, commonly expressed in metrics such as bps, Kbps, Mbps, or Gbps.

Internet Exchange Points (IXPs)

  • Hubs where the backbone intersects with local/regional networks allowing connectivity between backbone owners.

Campus Area Network (CAN)

  • A local area network within an organization leased for internet access.

Internet Service Providers (ISPs)

Definition

  • ISPs lease internet access to homeowners, small businesses, and organizations, being the lowest service tier in the multi-tiered architecture.

Types of Services

  1. Narrowband (Dial Up): Traditional modem connection operating at 56.6 Kbps.
  2. Broadband: Any service above 100 Kbps that allows streaming audio/video.
  3. T1: Digital communication standard delivering guaranteed service at 1.54 Mbps.
  4. T3: Higher standard at 45 Mbps.
  5. Satellite: High-speed broadband access via satellite technology.

Intranets and Extranets

Definitions

  • Intranet: A TCP/IP network within an organization for communication and information processing.
  • Extranet: Allows external parties access to an organization’s internal TCP/IP network.

Fiber Optic Cable

Overview

  • Fiber optic cables consist of multiple strands of glass using light for data transmission, replacing coaxial and twisted pair cables due to higher data capacity, speed, and security.

Wi-Fi Networks

Structure

  • Wireless systems connecting various devices (e.g., laptops, cellular phones) to the internet through a wireless access point.

Web Features and Services

Common Services

  • Email, Instant Messaging, Search Engines, Online Message Boards, Voice Over Internet, Streaming Media: Key features of web services.

Web 2.0 Features and Services

Characteristics

  • Online Social Networks, Blogs, Virtual and Augmented Reality, Wikis, Mixed Reality: Emerging functionalities enhancing internet interaction and user experience.

Specific Web Services Descriptions

Email

  • Most prevalent internet application, utilizing several protocols for message transfer including attachments.

Instant Messaging

  • Allows near-instant communication between users.

Search Engines

  • Identify web pages matching user queries and summarize results.

How Google Works

  1. Users enter queries, which are received by Google’s servers.
  2. Google employs a vast network of computers to handle requests and generate results.
  3. Queries are sent to Google’s index servers maintaining the location data of web pages containing the keywords.
  4. PageRank software evaluates page “importance” using a robust algorithm.
  5. Summaries for each page are prepared; results are delivered to the user.

Other Online Features

  • Online Forums: Platforms for asynchronous user communication.
  • Streaming Media: Allows real-time playback of video/audio content.
  • Virtual Reality (VR): Immersive experiences using HMDs.
  • Wikis: Collaborative web applications for easy content editing.
  • Augmented Reality (AR): Overlays digital information onto the real world.
  • Voice over Internet Protocol (VoIP): Enables audio communication over internet connections.
  • Online Social Networks: Platforms supporting community interactions (e.g., Facebook, LinkedIn).
  • Blogs: Personal or corporate webpages for direct user communication.
  • Mixed Reality: Combines real-world environments with interactive virtual elements.