Internet & E-Commerce

HARISH MORWANI
harishmorwani@gmail.com
 What Is the Internet?
• A network of networks, joining many government,
university and private computers together and
providing an infrastructure for the use of E-mail,
bulletin boards, file archives, hypertext documents,
databases and other computational resources
• The vast collection of computer networks which
form and act as a single huge network for transport
of data and messages across distances which can be
anywhere from the same office to anywhere in the
world.

2
Copyright 2002, William F. Slater, III, Chicago, IL, USA
 What is the Internet?

• The largest network of networks in the

world.
• Uses TCP/IP protocols and packet switching .

Dr. Vinton Cerf,

Creator of TCP/IP
Internet Growth Trends
 Internet Growth Trends
• 1977: 111 hosts on Internet
• 1981: 213 hosts
• 1983: 562 hosts
• 1984: 1,000 hosts
• 1986: 5,000 hosts
• 1987: 10,000 hosts
• 1989: 100,000 hosts
• 1992: 1,000,000 hosts
• 2001: 150 – 175 million hosts
• 2002: over 200 million hosts
• By 2010, about 80% of the planet will be on the Internet
 Internet: The Present Scenario

• Today, there are billions of websites

carrying terabytes of information,
which can be accessed at the click of
mouse. Problem is the slow speed of
access. People are using telephone
lines for the same. New technologies
are addressing this problem
 Internet: The Future

• Digital Wallets
• Virtual Tourism
• Internet as Information Warehouse
• Virtual Classrooms
• Web TV
 E-Mail
• Electronic mail (abbreviated
"e-mail" or, often, "email") is
a store and forward method
of composing, sending,
storing, and receiving
messages over electronic
communication systems.
• Neither snow nor rain nor
heat nor gloom of night stays
these couriers from the swift
completion of their
appointed rounds
 Internet Relay Chat
• Internet Relay Chat (IRC) enables
people all over the world to talk
together over the Internet in
real-time sessions in virtual
rooms.
• To join an IRC discussion, you
need an IRC client and Internet
access. The IRC client is a
program that runs on your
computer and sends and
receives messages to and from
an IRC server. The IRC server, in
turn, is responsible for making
sure that all messages are
broadcast to everyone
participating in a discussion
 Internet Telephony

A category of hardware and

software that enables people to
use the Internet as the
transmission medium for
telephone calls. For users who
have free, or fixed-price
Internet access, Internet
telephony software essentially
provides free telephone calls
anywhere in the world. To
date, however, Internet
telephony does not offer the
same quality of telephone
service as direct telephone
connections.
 Internet Fax

• The user can send a fax

through the Internet to
the fax service provider
from either a fax machine
or a computer, which
automatically routes the
fax to its destination
through the Internet
 Internet Paging
• Also known as Buddy List
Software
• A Buddy List is a window
that shows all your
buddies (friends, family,
coworkers, and others)
who are online.
Whenever they sign on,
their screen names
appear in your Buddy
List, and you can
communicate with them
instantly.
 File Transfer Protocol
• FTP or file transfer protocol is used
to connect two computers over the
Internet so that the user of one
computer can transfer files and
perform file commands on the other
computer.
• There are two computers involved in
an FTP transfer: a server and a
client. The FTP server, running FTP
server software, listens on the
network for connection requests
from other computers. The client
computer, running FTP client
software, initiates a connection to
the server. Once connected, the
client can do a number of file
manipulation operations such as
uploading files to the server,
download files from the server,
rename or delete files on the server
and so on.
 Usenet
• An Internet-based bulletin
board that consists of a set
of "newsgroups" with names
that are classified
hierarchically by subject.
"Articles" or "messages" are
"posted" to these
newsgroups by people on
computers with the
appropriate software --
these articles are then
broadcast to other
interconnected computer
systems via a wide variety
of networks.
 World Wide Web
• A system of Internet servers that support
specially formatted documents. The
documents are formatted in a markup
language called HTML (Hyper Text Markup
Language) that supports links to other
documents, as well as graphics, audio, and
video files. This means you can jump from
one document to another simply by clicking
on hot spots. Not all Internet servers are
part of the World Wide Web.
 Intranets

What are Intranets?

• Intranet is Intra+ Net so an
Intranet is an internal or
private Internet used strictly
within the boundaries of a
company, university, or
organization. "Inter" means
"between or among," hence
the difference between the
Internet and an Intranet.
 A technical
definition Intranets
• An Intranet is a
network based on
the internet TCP/IP
open standard. An
intranet belongs to
an organization, and
is designed to be
accessible only by
the organization's
members,
employees, or
others with
 Extranet

• An extranet is a private network that uses

Internet protocols, network connectivity,
and possibly the public telecommunication
system to securely share part of an
organization's information or operations with
suppliers, vendors, partners, customers or
other businesses. An extranet can be viewed
as part of a company's Intranet that is
extended to users outside the company (eg:
normally over the Internet).
 Extranet
A private internet over the Internet".
 Applications
Companies can use an extranet to:
• Exchange large volumes of data using Electronic Data
Interchange (EDI)
• Share product catalogs exclusively with wholesalers or those
"in the trade"
• Collaborate with other companies on joint development
efforts
• Jointly develop and use training programs with other
companies
• Provide or access services provided by one company to a
group of other companies, such as an online banking
application managed by one company on behalf of affiliated
banks
• Share news of common interest exclusively with partner
companies
 VIRTUAL PRIVATE NETWORKS

 Virtual Private Network is a type of

private network that uses public
telecommunication, such as the
Internet, instead of leased lines to
communicate.

 Became popular as more employees

worked in remote locations.
 Private Networks
vs.
Virtual Private Networks
 Employees can access the network (Intranet)
from remote locations.

 Secured networks.

 The Internet is used as the backbone for VPNs

 Saves cost tremendously from reduction of

equipment and maintenance costs.

 Scalability
Traditional Connectivity
Remote Access Virtual Private
Network
 Four Critical Functions
Authentication – validates that the data was
sent from the sender.
Access control – limiting unauthorized users
from accessing the network.
Confidentiality – preventing the data to be
read or copied as the data is being
transported.
Data Integrity – ensuring that the data has
not been altered
 Advantages: Cost Savings

• Eliminating the need for expensive

long-distance leased lines
• Reducing the long-distance telephone
charges for remote access.
• Transferring the support burden to the
service providers
• Operational costs
 Advantages: Scalability

 Flexibility of growth

 Efficiency with broadband technology

 Disadvantages
VPNs require an in-depth understanding
of public network security issues and
proper deployment of precautions

Availability and performance depends on

factors largely outside of their control

Immature standards
 Schematic diagram of TAXNET

I.T. offices DR Sites

C type Location VSAT
64 Kbps
Satellite based Hub LAN

Network
VSAT
IDS
IDU
WAN Equipment

2 x 45 Mbps
2 x 155 Mbps

National Data Centre

I.T. offices
A2/B2 type Locations
WAN Equipment
Leased
Delhi
64/128/256 kbps line

2 x 155 Mbps
LAN
WAN Equipment

I.T. offices IDS

A1/B1 type Location Leased VPN
2/8 Mbps line
backbone Legend: -
Primary Link (Optical Cable)
Secondary Link
Service Providers Network (Optical Cable)
10/100 Mbps IPSec
Link Tunnel
Enterprise Collaboration System

• Information systems that use a variety

of technologies to help people work
together. They support
communication, coordination, &
collaboration among the members of a
workgroup.
• Example-Groupware
 Groupware

• Groupware is technology designed to

facilitate the work of groups. This
technology may be used to communicate,
cooperate, coordinate, solve problems,
compete, or negotiate.
• Groupware can be divided into three
categories depending on the level of
collaboration—communication tools,
conferencing tools and collaborative
management (Co-ordination) tools
Electronic communication tools
• Electronic communication tools send
messages, files, data, or documents between
people and hence facilitate the sharing of
information. Examples include:
• synchronous conferencing
• e-mail
• Instant Messaging
• faxing
• voice mail
• Wikis
• Web publishing
 Electronic conferencing tools
• Electronic conferencing tools facilitate the sharing of
information, but in a more interactive way. Examples
include:
• Internet forums (also known as message boards or discussion
boards) — a virtual discussion platform to facilitate and
manage online text messages
• Chatting — a virtual discussion platform to facilitate and
manage real-time text messages
• Telephony — telephones allow users to interact
• Video conferencing — networked PCs share video and audio
signals
• Data conferencing — networked PCs share a common
whiteboard that each user can modify
• Application sharing — users can access a shared document
or application from their respective computers
simultaneously in real time
 Collaborative management tools
• Collaborative management tools facilitate and manage group
activities. Examples include:
• electronic calendars (also called time management
software) — schedule events and automatically notify and
remind group members
• project management systems — schedule, track, and chart
the steps in a project as it is being completed
• workflow systems — collaborative management of tasks and
documents within a knowledge-based business process
• online spreadsheets — collaborate and share structured data
and information
• Collaborative software can be either web based (such as
UseModWiki or Scoop), or desktop systems (such as CVS or
RCS).
 Fundamentals of E-commerce

• Electronic commerce (also referred to

as EC, e-commerce or ecommerce)
consists primarily of the distributing,
buying, selling, marketing, and
servicing of products or services over
electronic systems such as the Internet
and other computer networks
 Major Categories

• Business-to-Consumer(B2C)
• Business to Consumer commerce, “applies to
any business or organization that sells its
products or services to consumers over the
Internet for their own use.” In other words,
it provides a direct sale between the
supplier and in the individual consumer.
 Major Categories

• Business-to-Business (B2B)
• Business-to-Business involves online
transactions between businesses.
Examples of B2B include online
companies that specialize in marketing
strategies, advertising, email
companies, internet consultants,
website development etc.
 WWW & E-Commerce

• WWW is a system of Internet servers

that support specially formatted
documents. The documents are
formatted in a markup language called
HTML (Hyper Text Markup Language)
that supports links to other documents,
as well as graphics, audio, and video
files.
 WWW & E-Commerce

• Hypertext is text which contains links

to other texts.
• Hypermedia is a term used for
hypertext which is not constrained to
be text: it can include graphics, video
and sound