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IMS 6485: The Internet & WWW
1Dr. Lawrence West, MIS Dept., University of Central [email protected]
Topics
• Components of the Internet
– Technical
– Standards
– Transmission
• Internet II
• The WWW
• New Uses of the Internet
• Important Themes
• Akami Case
IMS 6485: The Internet & WWW
2Dr. Lawrence West, MIS Dept., University of Central [email protected]
Chapter Overview
• Chapter covers Internet Technologies and Internet Content/Uses
– Can't have one without the other
– Which came first?
– Which is shaping the use and structure of the Internet?
– What forces are also shaping the Internet
• Technical?
• Market?
– Supply? − Demand?
• Regulatory?
IMS 6485: The Internet & WWW
3Dr. Lawrence West, MIS Dept., University of Central [email protected]
What Are the Components of the Internet?
• Physical?
• Protocol?
• Legal?
IMS 6485: The Internet & WWW
4Dr. Lawrence West, MIS Dept., University of Central [email protected]
When Did the Internet Become the Internet?
• What separately developed pieces became the first Internet?
– Private Internet?
– Public Internet?
• Who paid for each piece and what was their motivation?
• When did the Internet go mainstream?
– What were the reasons?
– What were the investments and benefits?
– Was there a tipping point?
IMS 6485: The Internet & WWW
5Dr. Lawrence West, MIS Dept., University of Central [email protected]
Packet Switching
• What is packet switching?
– Why is it so important in data communications?
– What is the alternative?
– Why has packet switching persisted as the transmittal means of choice for the Internet?
– What factors are currently making packet switching problematic (in some instances)?
• What are the economic issues affecting packet switching and recent problems?
• Is the fix being contemplated technical or economic?
IMS 6485: The Internet & WWW
6Dr. Lawrence West, MIS Dept., University of Central [email protected]
Impact of Standards & Protocols
• SMTP
• POP
• IMAP
• FTP
• Telnet
• SSL
• TCP/IP
• IP Addressing scheme
• Domain Names
• HTTP
• The technical capabilities of these protocols are important enablers
• What are the economic impacts of these protocols?
IMS 6485: The Internet & WWW
7Dr. Lawrence West, MIS Dept., University of Central [email protected]
Technical Infrastructure—The Internet Backbone
• The Internet backbone is billions of dollars of fiber optic data transmission capability
– Internet Exchange Points connect the backbone to local networks
– Local Networks provide the connectivity to ISPs who in turn connect users
• What is the pricing model used by backbone suppliers?
• By ISP?
IMS 6485: The Internet & WWW
8Dr. Lawrence West, MIS Dept., University of Central [email protected]
Infrastructure Investment
• Read the discussion at the bottom of p. 153
– Who screwed up?
– What was their motivation?
– Who has benefited? In what way?
• What is the implication of the overinvestment in capacity of the end of the last century?
– What drove Lucent stock from $85 dollars a share to 85 cents a share?
IMS 6485: The Internet & WWW
9Dr. Lawrence West, MIS Dept., University of Central [email protected]
Technical Infrastructure—The Last Mile
• The Last Mile refers to the connectivity directly to the user's equipment (phone or computer)
• Much of the last mile technology has been based on outdated technologies
– Telephone and cable lines using copper wire
– Hugely expensive to update
– P. 153: Verizon spent $2.5 billion to run fiber optic lines into 3 million homes (≈ $835 / home)
– What gamble is Verizon making?
– What Revenue Model does Verizon have?
• How many signals came into a home in 1990?
IMS 6485: The Internet & WWW
10Dr. Lawrence West, MIS Dept., University of Central [email protected]
Technical Infrastructure—The Last Mile (cont.)
• What does all of this have to do with current services and marketing by AT&T and the Cable Companies?
– What are they trying to do and why?
• What is NetZero trying to do?
IMS 6485: The Internet & WWW
11Dr. Lawrence West, MIS Dept., University of Central [email protected]
Technical Infrastructure—The Last Mile (cont.)
• Wireless Connectivity
– WiFi breaks the wired connection for the last mile
– Precedent follows from developing countries that skipped wired last mile telephony to implement strictly cellular access
– Many WiFi public hot spots
• Who pays?
• What is motivation?
• Who benefits?
– Also municipal and community WiFi projects
IMS 6485: The Internet & WWW
12Dr. Lawrence West, MIS Dept., University of Central [email protected]
Technical Infrastructure—The Last Mile (cont.)
• Wireless Technologies (p. 154…)
– There are multiple competing technologies for wireless connectivity
• WLAN vs. telephone-based connectivity
– What are the technical and market implications of competing standards?
– Wireless Application Protocol for mobile (small) devices
• System development implications?
IMS 6485: The Internet & WWW
13Dr. Lawrence West, MIS Dept., University of Central [email protected]
New Uses of the Internet
• IM
• Wikis
• Podcasts
• VOIP telephone service
• Streaming media
• Application Service Providers & Cloud Computing
– What are they and what are the economic motivations?
– What technologies enabled them?
IMS 6485: The Internet & WWW
14Dr. Lawrence West, MIS Dept., University of Central [email protected]
Cloud Computing
• CC is a model of computing and data storage that moves computing resources onto the Internet and away from local machines
– Applications
– Data storage
– Computing capacity
• Companies invest in high capacity computing, storage, and networking
– Able to shift demand to idle resources
• Clients only need network access
IMS 6485: The Internet & WWW
15Dr. Lawrence West, MIS Dept., University of Central [email protected]
New Uses of the Internet (cont.)
• What impact have new uses of the Internet had on the Old Internet (Internet 1)?
• What constraints from Internet 1 affect new uses?
• How do new uses affect the network?
• What market and technical forces affect this interaction between new uses and old technologies?
IMS 6485: The Internet & WWW
16Dr. Lawrence West, MIS Dept., University of Central [email protected]
Internet II Technologies
• IP Multicasting• Latency Solutions address differential packet delivery
times– Note a market issue involved
• Guaranteed Service Levels – Also a new market issue
• Declining Costs– Increased use = lower average cost for consuming
fixed assets• An important and common economic model
– Improved technologies lead to lower costs
IMS 6485: The Internet & WWW
17Dr. Lawrence West, MIS Dept., University of Central [email protected]
The WWW
• Some Themes
– Government and/or academic development
– Proven technologies and concepts then translate to the public sector
– Look for first movers who were overtaken by followers
• Netscape→Microsoft
• Compuserve →AOL
– Existing technologies adapted for Web
• SGML →HTML
IMS 6485: The Internet & WWW
18Dr. Lawrence West, MIS Dept., University of Central [email protected]
Themes Revisited
• Network Externalities
– What are the instances of in the history of the Internet and it's current version?
– What opportunities do you see for future development?
• Leverage—What instances of leverage did we see in the development of the Internet?
• The Social Environment
– What will be different as the Internet goes forward?
– How will these differences affect future Internet development?
IMS 6485: The Internet & WWW
19Dr. Lawrence West, MIS Dept., University of Central [email protected]
Themes Revisited—Standards
• What are all of the examples of competing standards we have seen as the Internet grew and for future development?
• How have standards been selected from among candidates?
• What are the risks of having competing standards?
• Given these risks why do we see them?
• What have been some historical standards battles?
IMS 6485: The Internet & WWW
20Dr. Lawrence West, MIS Dept., University of Central [email protected]
Themes Revisited (cont.)
• We have seen some of the impacts of the Internet on business
– Traditional businesses
– eCommerce-intensive businesses
• What changes can you anticipate as the Internet develops?
– More of the same
– Entirely new opportunities
– Entirely new threats
IMS 6485: The Internet & WWW
21Dr. Lawrence West, MIS Dept., University of Central [email protected]
Themes Revisited--Constraints
• What constraints have existed on the Internet at various points in its history?
• What have been the dynamics (changes) in these constraints?
• What have been the results of the changes?
• What are current constraints on the Internet?
• What could change about current constraints?
• What would be the results of such future changes
IMS 6485: The Internet & WWW
22Dr. Lawrence West, MIS Dept., University of Central [email protected]
The Akami Case
• What does the Akami Company do
• Discuss the Business Model elements:
– Value Proposition
– Revenue Model
– Competitive Environment
• Not just competitors
• Could the need that spawned their service become obsolete?
IMS 6485: The Internet & WWW
23Dr. Lawrence West, MIS Dept., University of Central [email protected]
Finally
• What parallels can be drawn from the development of the Internet and the development of the Interstate Highway System?
• Where do the analogies break down?