1. IMS 6485: The Internet & WWW 1 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU Topics Components of the Internet –Technical –Standards –Transmission Internet II The WWW New Uses of the Internet Important Themes Akami Case

2. IMS 6485: The Internet & WWW 2 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

3. IMS 6485: The Internet & WWW 3 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU What Are the Components of the Internet? Physical? Protocol? Legal?

4. IMS 6485: The Internet & WWW 4 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

5. IMS 6485: The Internet & WWW 5 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

6. IMS 6485: The Internet & WWW 6 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

7. IMS 6485: The Internet & WWW 7 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

8. IMS 6485: The Internet & WWW 8 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

9. IMS 6485: The Internet & WWW 9 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

10. IMS 6485: The Internet & WWW 10 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

11. IMS 6485: The Internet & WWW 11 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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

12. IMS 6485: The Internet & WWW 12 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

13. IMS 6485: The Internet & WWW 13 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

14. IMS 6485: The Internet & WWW 14 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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

15. IMS 6485: The Internet & WWW 15 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

16. IMS 6485: The Internet & WWW 16 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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

17. IMS 6485: The Internet & WWW 17 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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

18. IMS 6485: The Internet & WWW 18 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

19. IMS 6485: The Internet & WWW 19 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

20. IMS 6485: The Internet & WWW 20 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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

21. IMS 6485: The Internet & WWW 21 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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

22. IMS 6485: The Internet & WWW 22 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?

23. IMS 6485: The Internet & WWW 23 Dr. Lawrence West, MIS Dept., University of Central Florida LWEST@BUS.UCF.EDU 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?