Information Systems: A Manager’s Guide to Harnessing Technology

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Chapter 12 A Manager’s Guide to The Internet and Telecommunications

Learning Objectives Describe how the technologies of the Internet combine to answer the questions: What are you looking for? Where is it? And how do we get there? Interpret a URL, understand what hosts and domains are, describe how domain registration works, describe cybersquatting, and give examples of conditions that constitute a valid and invalid domain-related trademark dispute

Learning Objectives Describe certain aspects of the Internet infrastructure that are fault tolerant and supports load balancing Discuss the role of hosts, domains, IP addresses, and the DNS in making the Internet work Understand the layers that make up the Internet – application protocol, transmission control protocol, and internet protocol – and describe why each is important

Learning Objectives Discuss the benefits of Internet architecture in general, and TCP/IP in particular Name applications that should use TCP, and others that might use UDP Understand what a router does, and the role these devices play in networking

Learning Objectives Conduct a traceroute and discuss output, demonstrating how Internet interconnections work in getting messages from point to point Appreciate why mastery of Internet infrastructure is critical to modern finance, and be able to discuss the risks in automated trading systems Describe VoIP, and contrast circuit vs. packet switching, along with organizational benefits and limitations of each

Learning Objectives Understand the last mile problem, and be able to discuss the pros and cons of various broadband technologies including DSL, cable, fiber, and various wireless offerings Describe 3G and 4G systems, listing major technologies and their backers Understand the issue of net neutrality and put forth arguments supporting or criticizing the concept

Figure 12.1 – The Internet is a network of networks, and these networks are connected together The Internet is a network of millions of networks

Figure 12.2 – Anatomy of a Web Address

The Web Address Hypertext transfer protocol (http) - application transfer protocol that allows web browsers and web servers to communicate A domain name represents an organization and a host refers to public services offered by that organization Host and domain names are case-insensitive Path maps to folder location where file is stored on server Path and filenames are case sensitive Filename refers to name of file stored on server Item Number: 101783940

Host and Domain Names: A Bit More Complex Than That A domain name represents an organization Hosts are public services offered by that organization Load Balancing: Distributing a computing or networking workload across multiple systems in order to avoid congestion and slow performance Fault Tolerant: Systems that are capable of continuing operation even if a component fails

I Want My Own Domain One can register a domain name, paying for a renewable right to use that domain name Domain name registration is handled on a first-come, first-served basis and all registrars share registration data to ensure that no two firms gain rights to the same name Cybersquatting: Acquiring a domain name that refers to a firm, individual, product, or trademark, with the goal of exploiting it for financial gain

IP Addresses and the Domain Name System Every device connected to the Internet has an identifying address called the Internet Protocol (IP) address The domain name service is hierarchical system of nameservers that maps host-domain name combinations to IP addresses The cache is a temporary storage space that speeds up IP address mapping by avoiding nameserver visits

Figure 12.3 – When your Computer needs to find the IP address for a host or domain name, it sends a message to a DNS resolver, which looks up the IP address starting at the root nameserver

The Internet is Almost Full Inefficient allocation of IP addresses and exploding number of Internet connected devices means that we’re running out of IP addresses Shifting to a new IP scheme such as IPv6 increases the possible address space to a new theoretical limit of 2128 addresses

TCP/IP – The Internet’s Secret Sauce The Internet Protocol Suite consists of: Transmission Control Protocol (TCP) Internet Protocol (IP) TCP works at both ends of Internet communications to ensure perfect copies of messages are sent IP is a routing protocol in charge of forwarding packets on the Internet Routers are computing devices that connect networks and exchange data between them

Figure 12.4 – TCP/IP in Action

Routers Routers are special computing devices that forward packets from one location to the next Routers are typically connected with more than one outbound path, so that in case one path becomes unavailable, an alternate path can be used

UDP: TCP’s Faster, Less Reliable Sibling TCP is a perfectionist and this is essential for web transmissions, e-mail, and application downloads Streaming media applications like Internet voice chat and video conferencing require sacrificing of perfection for speed User Datagram Protocol (UDP) works as a TCP stand-in speed is needed and quality has to be sacrificed

VoIP Old phone systems use circuit switching for a dedicated connection between two entities Internet networks are packet switched and conversations are sliced into packets and squeezed into smaller spaces VoIP allows voice and phone systems to become an application traveling over the Internet

Finance has a Need for Speed Electronic trading systems leverage data mining and other techniques to crunch massive volumes of data and discover exploitable market patterns Models are then run against real-time data and executed the instant a trading opportunity is detected Systems that run on their own can move many billions instantly, and the actions of one system may cascade, triggering actions by others

Watching the Packet Path via Traceroute Traceroute sends clusters of three packets starting at first router connected to a computer, then the next, and so on, building out paths packets take to their destination Some networks block traceroute because hackers have used the tool to probe a network to figure out how to attack an organization

What Connects the Routers and Computers? Computers are connected to the Internet by: Copper cable, for short distances Fiber optic lines, for long distances Wireless TCP/IP is not dependent on transmission media Most Internet communications are carried out via a combination of transmission media Item number: 92041959

Last Mile: Faster Speed, Broader Access The Internet Backbone, made of fiber optic lines, is very fast Amdahl’s law sates that a system’s speed is determined by its slowest component or the last mile High-speed last mile technologies are often referred to as Broadband Internet Access Various technology upgrades are happening to speed up last mile connectivity

Cable Broadband Majority of domestic broadband connections are through copper cable technology Coaxial copper cables have shielding to reduce electrical interference Signals travel longer distances without degrading and at significant speeds Fiber/optic hybrid based networks are expensive, but offer higher speeds

DSL – Phone Company Copper DSL technology uses copper wire phone companies have already run into homes Unlike cable, DSL uses standard copper wiring without shielding Signals degrade with distance from phone company offices DSL technology is popular in Europe and Asia owing to densely populated cities DSL connections are infeasible in the U.S. where cities are sparsely populated

Fiber – A Light-filled Glass Pipe to your Doorstep FTTH or Fiber to the Home is the fastest last mile technology around FTTH networks need to be built from scratch as they do not have preexisting infrastructure However, FTTH can be profitable as it supports a wide range of services Many ISPs like Google and Verizon have made multibillion investments in FTTH for experimental and business reasons, respectively

Wireless Item number: 94099985 Mobile wireless service is provided to customers via cell towers With boom in sales of smart phones, bandwidth crunch is becoming a serious concern for ISPs Wireless networks are transitioning from third generation (3G) to fourth generation (4G) 3G networks are slower than 4G and offer a lesser range of services

3G standards 3G standards are divided along two camps: Global System for Mobile Communications (GSM) Code Division Multiple Access (CDMA) The GSM standard is the most used around the world CDMA is limited by its inability to support voice and data communication at the same time Item number: 95207220

4G standards 4G standards are divided along the lines of: Long Term Evolution (LTE) Worldwide Interoperability for Microwave Access (WiMax) DSL, cable, and fiber firms could be affected by 4G implementations 4G offers them option of entering mobile phone business and offer a wider range of services If speeds of 4G networks increase, more users could switch from cable, DSL, and fiber to wireless Internet access

Satellite Wireless Early satellite based telecommunications services suffered from problems such as: Download-only capability Required expensive and bulky equipment High latency O3b networks has offered to provide fiber-quality broadband access O3b plans to use a network of middle earth orbit satellites to reduce latency If O3b’s efforts are successful, it could transform the broadband industry

Wi-Fi and other hotspots Computer and mobile devices have Wireless Fidelity antennas built into their chipsets To connect to the Internet, a device needs to be within range of a base station or hotspot Cell coverage is often limited due to lack of service towers Fentocells are being offered to improve wireless reception Item number: 97889798

Net Neutrality- What’s Fair? Net neutrality is the principle that all Internet traffic should be treated equally Many ISPs offer varying coverage, depending on service used and bandwidth consumed Internet firms say it is vital to maintain the openness of the Internet Telecommunications firms say they should be able to limit access to services that overtax their networks Another concern for service providers is ever-increasing demand for greater bandwidth