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e-Commerce

Unit 4

Unit 4

e-Commerce Infrastructure

Structure: 4.1 Introduction Learning objectives 4.2 e-Commerce Infrastructure An Overview 4.3 Hardware 4.4 Server Operating System 4.5 Software Server software e-Commerce software 4.6 Network Website Role of broadband in e-commerce Network structure in e-commerce 4.7 Summary 4.8 Glossary 4.9 Terminal Questions 4.10 Answers 4.11 Case-Let

4.1 Introduction
By now, you must be familiar with network infrastructure and components of I-way. In the previous unit, we discussed about the hierarchy of internet and basic blocks of e-commerce. We also studied about network layers and TCP/IP protocols and the role of the World Wide Web in e-commerce. In this unit, we will be learning about the e-commerce infrastructure, which includes the hardware, the web-server hardware, the software and the server operating system. e-Commerce interfaces with several architectural structures. These structures facilitate e-commerce to do many things such as: Work on huge amounts of data. Interface data in an integrated method against different types of technologies. Become aware of changes in the business climate at both macro and micro level.
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Learning objectives After studying this unit, you should be able to: define Hardware and Web Server Hardware. explain the functions of Web server Hardware. explain the server software used in e-commerce. discuss the different types of software used in e-commerce.

4.2 e-Commerce Infrastructure An Overview


The e-commerce infrastructure is the collection of principles, guidelines, strategies, mechanisms and services that are beneficial to online businesses. The major challenge in the e-commerce implementation strategy is to determine the method to be adopted to use this infrastructure to support the applications that are deployed. In e-commerce infrastructure, every layer supports the layer that is above it. The e-commerce infrastructure is divided into three categories and they include: Electronic commerce environment. Infrastructure services. Commerce solution providers Figure 4.1 explains the categories of e-commerce infrastructure.

Figure 4.1: Categories of e-Commerce Infrastructure

Electronic commerce environment: This category includes the procedures and frameworks intended to create a favourable business environment. This e-commerce environment also comprises Technical Standards, a Legal and Regulatory Structure, and different Incentive Policies.
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Infrastructure services: This category contains the services that offer specific e-commerce functions, including user validation or credit card payment processing. Usually, an electronic commerce solution requires one or more infrastructure services. The infrastructure services are further divided as Directory Services, Network Services, Payment Services, and Safety Services. Commerce solution providers: This category includes the organisations that provide total end-to-end solution or packaged constituents of a solution, for companies who opt not to employ electronic commerce systems on their own.

4.3 Hardware
In information technology, hardware is defined as the physical feature of computers, telecommunications, and other devices. The e-commerce application industry consists of various products and services which also include hardware components. These hardware components comprise: Routers. Firewalls. Digital switches. Servers. Workstations. Routers: A router1 is an electronic device that helps in interlinking two or more computer networks, and exchanging data packets between them. All data packets include address information. The router uses this data information to verify whether both the source and destination are on the same network, or whether the data packet must be transmitted from one network to another. The routers exchange information about target system addresses which helps every router to develop a table that defines the chosen paths between any two systems on the interrelated networks. This happens when many routers are used in a huge collection of interrelated networks.

http://en.wikipedia.org/wiki/Router

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There are two or more network interfaces in a router, and this could be to different physical kinds of network (for example, copper cables, fibre, or wireless) or different standards of network. Every network interface is a focused and specialised device, which helps in converting electric signals from one form to another. Firewalls: A firewall is a group of related programs that is placed at a network gateway server, which guards the private network resources from other networks users. The term also involves the security policy used along with the programs. Companies generally establish a firewall to avoid strangers from accessing their own confidential data resources and also to control what external resources its own users have access to. A firewall that functions closely with a router program, analyses each network packet to find out whether to send it toward its destination. A firewall also functions with a proxy server, which creates network requests for workstation users. A firewall is mostly established in a specially chosen computer that is separate from the rest of the network. This in turn results in no incoming request getting directly at private network resources. There are numerous firewall screening techniques. An easy technique is to examine the requests to ensure that they are from acceptable (formerly recognised) domain name and Internet Protocol addresses. Firewalls help all mobile users to get a remote access to the private network using safe logon processes and validation certificates. Several companies create firewall products. Various features comprise: Logging and reporting. Automatic alarms at given threshold of attack. Graphical user interface for handling the firewall.

Digital switches: A digital switch2 is a device that deals with digital signals produced at a central office and then sends them across the company's backbone network. The digital signals are received from the of fices channel banks that are transformed from users analog signals and then change them with incoming signals out to the broad network area.

http://searchnetworking.techtarget.com/dictionary/definition/what-is-digital-switch.html

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Digital switches are explained in terms of classes depending on the number of lines and features offered. A private company owning a digital switch is termed as a private branch exchange (PBX). A centrex is a name given to a digital switch present at the central office that handles switching for the private company from the central office. Servers: A server is a computer program that gives services to other computer programs and their users in the same or different computers. The computer that a server program executes is often referred to as a server (although it is used for different purposes too). A server is a program that expects and accomplishes requests from client programs in the same or different computers with respect to the client/server programming model. Any given application in a computer may work as a client with service requests from other programs and also as a server of requests from other programs. Workstations: Workstations are created for influential business applications that perform a huge number of calculations or need high-speed graphical exhibits. Sun Microsystems introduced a workstation in 1987. Also, Apollo, Ardent, and Stellar introduced workstations in 1988 which intended at 3D graphic applications. The workstation is also employed to refer to a personal computer that is linked to a mainframe computer to differentiate it from dumb display terminals with restricted applications. Web-Server hardware Servers are considered to be the backbone of any good website. A server is also referred to as a computer on steroids which provides a fast permanent connection to the internet and subsystems. This helps in defending against breakdowns, hackers, and system crashes. The blending of hardware, operating system, and server software form a server. The customer approval and satisfaction and future scalability is mainly based on the performance of application servers, web servers, HTTP servers, and database servers. The customers are disturbed with slow response times, and this can affect the data flow through the transactionprocessing pipeline. This also influences the other elements of your back office, which include network connections and, finally reflects in a negative way on your bottom line. However, accomplishing peak performance and
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then striving for future progress is considered to be a mysterious skill for those e-commerce sites that handle several customers at any given moment. Unless you have an exact reason for managing your own servers, outsourcing to a web-hosting service is the best solution. This is achieved through a co-location arrangement, an enterprise agreement (for example, renting servers, applications and technical services), or leasing of server space (virtual hosting). It is vital to know about the essential hardware requirements irrespective of the fact that whether hosting the site yourself or outsourcing to a hosting company. Small websites Server specifications Cost acts as a major obstacle for many small enterprisers and brick-andmortar businesses, to develop their own website. But, at present, the hardware required for hosting your own website is no longer costly or complicated to set up. Server requirements Determining your hardware requirements is the first step in determining your server requirements. In this section, let us discuss some server specifications for a website that is hosted on premises by a company with a fixed budget. A normal server (web server or otherwise), includes a computer (the hardware), an operating system (generally Unix or Windows), and software (the applications). The software may include e-mail server software, web server software, and commerce server software, and so on. Your web server must be exclusive, i.e., stand-alone just for safety reasons. In case your web server is connected to the internal network of your business, set up another computer to house a firewall, later place it in between your internal network and your web server. Memory is vital. A 64 MB of RAM is enough for a small static web server, but it is not sufficient for database. It is very important to note that you must always install as much memory as your budget will allow. If you expect more than moderate traffic from the beginning, anticipate using a database to drive your site, which means loading your server with sufficient memory.

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The amount of hard drive space that your software and web pages require must be considered. It is possible for you to execute only an operating system, web server software, and traffic analysis software on your server if you have a static brochure-ware site. Thus, a 1 GB hard drive will be enough. It is advisable that you install the largest drive your budget will permit for other website layouts. Go for the fastest processor your budget will allow. But if you have a limited budget, then a web server using an older technology, like a 233 MHz Pentium with MMX, is suitable for a static website. It is recommendable to opt for a later Pentium model and load it with adequate memory to deal with more than moderate traffic, or more processor intensive web design (for example, numerous graphics, database, and interactive content). It is also necessary that all web servers must be provided with an uninterruptible power supply (UPS) and also some sort of backup in the form of floppy disks, a Zip drive (an inexpensive external drive), or a read/write CD drive. Activity 1: Visit any e-commerce organisation and collect information about their infrastructure and different categories of their infrastructure. Hint: Electronic commerce environment Self Assessment Questions 1. The __________ is the collection of principles, guidelines, strategies, mechanisms and services that are beneficial to the online businesses. 2. The category which includes the procedures and frameworks intended to create a favourable business environment is __________. 3. A _______ is an electronic device that helps in interlinking two or more computer networks, and then also exchanging data packets between them. 4. A _______ is a device that deals with digital signals produced at a central office and then sent across the company's backbone network. 5. ________ are created for influential business applications that perform huge number of calculations or need high-speed graphical exhibits. 6. Determining your hardware requirements is the first step in determining your server requirements. (True/False)?
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4.4 Server Operating System


Server Operating Systems are planned to render platforms for multi-user and recurrently business-critical, networked applications. Hence, such operating systems focus mainly on safety, stability and collaboration, instead of user interface. Common applications for server operating systems Some of the common applications for server operating systems include: File and printer sharing: File sharing helps in preparing a common storage point for an e-commerce company's documents - a network drive. Print sharing helps many computers to use a single printer. Windows 95, 98 and ME have both file and print sharing, but are not suggested to use as server OSes. Application services (with databases): A server operating systems skill to run the applications that you need is evidently very crucial. Servers work as an essential database stores and shared environments for combined applications. Web site services: Server OSes is considered to be a part of the hypertext transfer protocol (HTTP) server, through an integrated application, or through other HTTP applications. The best example for HTTP application is Apache open source server. Some operating systems are built with more advanced features. For example, database integration which helps you to dynamically build Web pages depending on database information; personalisation and scripting. E-mail, groupware and messaging: Sending and receiving e-mails to and from your e-commerce transactions are done with the help of a central email server, and manage individual e-mail accounts depending on a domain. Some of the Groupware applications include Microsoft Exchange or Novell GroupWise, Lotus Notes. These applications provide e-mail and more advanced collaborations. These applications also provide shared calendars, group forums, database/messaging integration, instant messaging, whiteboard sharing so on. Caching: Accelerating network access (generally it includes Internet access) by storing the files that were downloaded previously in a cache. It is like an Internet browser which stores a cache of the Web pages that you
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have visited, so there is no necessity to download the files again. Some examples of caching server applications include Microsoft Internet Security and Acceleration Server, Inktomi Traffic Server and Squid.

4.5 Software
Computer software, or just software, is the accumulation of computer programs and associated data that help in providing instructions to computer as what to do. Software is also defined as one or more computer programs and data that are held in the computer storage for some reasons. Program software carries out the task of the program it executes, by directly instructing the computer hardware. Software is intangible, which means that it is not possible to touch software. Software is also occasionally used as application software. At times, the term contains data that is not usually related with computers, like tapes, film, and records. Software also includes different forms that are present in a digitally stored data and then play in a computer, irrespective of the fact whether data is used as code for a CPU or other interpreter, or if it characterises other information. Thus, software includes various products that are developed via several methods and they are: Ordinary programming languages. Scripting languages. Microcode. Computer software is different from computer hardware, as computer hardware includes the physical interconnections and devices that are necessary to store and run the software. Architecture People using advanced common purpose computers that are different from embedded systems, analog computers and supercomputers generally have three layers of software and they are: Platform software. Application software. User software.

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Platform software: Platform software comprises device drivers, firmware, operating system, and graphical user interface which facilitate users to have proper interaction with the computer and its peripherals. Application software: Application software is the application that many people consider when they think of software. For example, office suites and video games. Application software is more frequently brought separately from computer hardware. At times, applications are bundled with the computer, but still they execute as independent applications. You can consider compilers, databases, and other system software as applications. User-written software: End-user development modifies systems which help to fulfil users' specific requirements. User software has two templates namely spreadsheet templates and word processor templates. E-mail filters are also considered to be a type of user software. This software is usually created by the users themselves, but more often they neglect the importance of this software. Based on efficient integration of the user-written software into default application packages, many users are not alert about the differences existing between the original packages, and what has been added by fellow workers. 4.5.1 Server software A web server is a program that helps in serving the content using HTTP protocol, and it is also at times termed as an HTTP server or application server. This content is more often seen in the form of HTML documents, images, and some web resources. A Web server serves the content which is either static or dynamic. The major requirement to be considered as a web server is that an application must apply the HTTP protocol. Web software category contains applications including blogging software and forums. Subcategories: This category has the following two subdivisions and they are: Free web server software. Web server management software. Free web server software: This category includes articles associated with software that are applied, copied, analysed, altered, and redistributed by users who get a copy of free software or open source software. In general,
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this refers to software that is circulated with a free software license, and the user receiving a copy of the software can get the source code of that software. Web server management software: Web server management software is software that is designed to execute on web servers to deal with all the features using a web interface. This software type is frequently referred to as a control panel because it urges the interface panel to manage and control the server. Most of the web hosting companies use these control panel solutions. Factors for selecting server software Factors that must be considered when selecting server software include: Security. Scalability. Support. Cost. Security: When selecting a web server, the first factor you need to consider is security. Since your web site is very public, hacking acts as public means to reduce your customer confidence. You must also concentrate on how to organise your secure web server. You can see many defaults in most of the web servers that are not as safe as they must be, and this results in putting your site at risk. It is necessary that you stay upto-date on security concerns. Scalability: Scalability helps in detecting the ability of your Web server software to develop, as your web site grows. Slow server results in more expenses on both existing customers and new customers, and there is very less time for you to grab and manage your site customers. Support: The most accepted web server in the world is totally free, however, with that comes a price. That price is a lack of proper support. If there is no availability of a large IT department to support the server that you select, then: You can most likely have a server with support included. You can have a third-party support agreement for a less well-supported server.
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Cost: The first major thing that people usually consider when deciding to purchase something is cost. But with web servers, it is considered to be the final thing. There is availability of some free servers (or free with costly operating system). Restricting to a particular Web server due to cost will result in hurting your site. This is due to lack of scalability or functionality, or not able to maintain because of lack of support. 4.5.2 e-Commerce software The best example for e-commerce software is shopping cart software. Shopping cart acts as a major factor that helps in distinguishing online and offline shopping. A shopping cart is the major essential component for online shopping. It is a tool that facilitates your customers to purchase your online products. Understanding and respecting the value of money and time of your customers is the major requirement in creating shopping cart software. Hence, it is necessary that you pay a special attention in setting up e-commerce shopping cart software that is cost effective and that is capable of facing the competitive e-commerce market. The shopping cart software must include the following features: Shopping cart made must include lesser production time and faster delivery. Easily customisable shopping cart software and also cost reducing that helps in e-commerce shopping cart software improvement. No compromise on product quality in negotiation to have cost-efficient e-commerce software within specific time. Preserving online store or e-store with just one click log in validation. Security of your site must be totally vaulted by Form Authentication and Authorisation. Easy updates of the software when required.

The need for efficient shopping cart software has become prominent because of increasing competition and changing market trends. A successful e-commerce solution usually has more appealing and available features. You must be very thoughtful about budget and also business requirements. Hence, an exciting and reasonable range of e-commerce solutions must be developed that helps in gaining the desired productivity, appealing customer service, reducing overheads, and profits.
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There is a wide variety of e-commerce solutions available, which is used to build every store that is imaginable, starting from a small boutique to an online mall. The process of e-commerce solution includes the following phases: Good interaction with your new visitors and regular customers. Unbeaten advertising of your products. Successful and safe process of business transactions. Reduced operational expenses. Promotion of your company's brand.

A quick construction and successful use of database-driven storefronts is the major step in developing an e-commerce solution. Due to recently advancing technologies and vast choice of capabilities, an e-commerce solution is used to create an interactive e-commerce web site and a communicating store for all businesses, starting from a small store to a huge online mall. Activity 2: Visit any shopping website which has the shopping cart facility and list the advantages of shopping cart. Hint: http://www.ebay.com/ Self Assessment Questions 7. _________ helps in preparing a common storage point for an ecommerce company's documents - a network drive. 8. __________ is considered to be a part of hypertext transfer protocol (HTTP) server, through an integrated application, or through other HTTP applications. 9. Program software carries out the task of the program it executes, by directly instructing the computer hardware. (True/False) 10. A ________ is a program that helps in serving the content using HTTP protocol. 11. The software which includes articles associated with software that is applied, copied, analysed, altered, and redistributed by users who get a copy of free software or open source software is ___________.

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12. ________ acts as a major factor that helps in distinguishing online and offline shopping.

4.6 Network Website


In the previous section, we discussed about e-commerce software and its role in todays business scenario. Now, let us discuss about the network websites, different types of connectivity, and network structure in e-commerce. Network websites act as an essential component in e-commerce. Connectivity is a term used for connecting devices to each other to transfer data to and fro. More often, connectivity cites network connections, which includes routers, switches and gateways with backbone networks. It may also include linking a home or office to the Internet or linking a digital camera to a computer or printer. Internet connections are changing at a rapid pace. There is variation in Internet connection speeds between Internet Service Providers (ISP). There are different types of connectivity and they include: Dial-up Internet access. Broadband Internet access. Leased line. Dial-up internet access3: It is an Internet access that utilises the public switched telephone network (PSTN) to set up a dialled connection to an Internet service provider (ISP) through telephone lines. With the help of an attached medium, the router encodes and decodes the Internet Protocol packets. Broadband internet access4: It is a high data rate Internet access which is generally contrasted by means of dial-up access using a 56k modem. The bitrate of Dial-up modems is usually less and it involves the telephone line usage. On the other hand, broadband offers more than double the dialup modems rate and normally without interrupting the telephone usage.

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http://en.wikipedia.org/wiki/Dial-up_Internet_access http://en.wikipedia.org/wiki/Broadband_Internet_access

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Leased line5: It is a permanent fibre optic or telephone connection provided between two points established by a telecommunications carrier. At times, a leased line is also termed as a dedicated line. It can be used for telephone, data, or Internet services. 4.6.1 Role of broadband in e-commerce There is advancement in online experience because of broadband adoption, wherein every sector will look for its own settling point. In e-commerce, there is a narrowing of gap that exists between broadband and dial-up users. It is evident that broadband users spend more percentage of online as compared to their dial-up users. Small vendors to bigger e-commerce companies are treated equal as you do not get to see the companies, but you can just have the online presence of the company in the e-commerce field. Search advertising in e-commerce has become a more useful platform because of reduced switching expenses and more competent navigation. According to a report, online media reports 20 percent of overall consumption for broadband users, increasing from 16 percent in 2004. Most of the companies have started to make investment in new services including online games, digital music, and video content to help home broadband users. Broadband has become a new buzzword with respect to business and home users. The e-commerce industry has finally realised the importance and huge profits this broadband technology can give to both its customers and increasing number of home users. It is evident that e-commerce will be the future for many business sectors all over the world. The confidence that customers have in using the Internet for online shopping has been encouraged with the help of increased safety measures and general awareness in using the net. The major element that needs to be considered in most of the e-commerce businesses switching over to broadband is the possible savings that they are able to make in telecom budgets. For example, many companies were paying a huge amount every year for leased lines to get internet access at high speed before the broadband was found. However, with the emergence

http://www.wisegeek.com/what-is-a-leased-line.htm

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of broadband technologies, those companies are making huge savings with respect to their telecom setup. 4.6.2 Network structure in e-commerce Network structure is the term used to explain the method of organising and viewing the data on a network. Electronic commerce has several networks related to it. Among these networks, some explain the relationships existing between customers who communicate product information and determine each others buying process. Others illustrate how the requirements and demand for various products are related depending on shared buying patterns. Remaining networks explain trade patterns between firms. Network structures have a great effect on the results in electronic commerce. The network of product pages that is present in an e-commerce site is the best example for a network structure. There is a network position for every product existing in an e-commerce site, and is determined by the products it connects to, and those that connects to it. The level to which the product position in a network structure affects its demand is assessed. The assessment is done depending on the thought that network structure redirects the flow of customer attention resulting in a redistribution of network traffic and requirement. The method used to redistribute the attention is assessed with the help of certain properties of the network structure. These properties are related with variations that are found in both individual and total product demand. Activity 3: Assume you are working in an organisation and you were using Dial-up internet access. After knowing that broadband is more productive, you switched from dial-up to broadband. Hence, list the advantages of using broadband internet access. Hint: Broadband offers more than double the dial-up modems rate and normally without interrupting the telephone usage.

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Self Assessment Questions 13. ________ is a term used for connecting devices to each other to transfer data to and fro. 14. A permanent fibre optic or telephone connection provided between two points established by a telecommunications carrier is ________. 15. ________ has become a new buzzword with respect to business and home users. 16. _________ is the term used to explain the method of organising and viewing the data on a network.

4.7 Summary
The e-commerce infrastructure includes a set of principles, rules, approaches, mechanisms and services that help online businesses to a greater extent. Defining the method applied to use the infrastructure is one of the biggest challenges in the e-commerce implementation strategy. Hardware includes physical features of computers, telecommunications, and other devices and this is with respect to information technology. Similarly, the e-commerce application industry also has products and services which include hardware components. Server Operating Systems need to be designed in a proper way to facilitate multi-user and business-critical, networked applications. As a result, such operating systems are created to focus primarily on safety, stability and collaboration. Software is defined as collection of computer programs and linked data that usually help in providing instructions to computer as what needs to be done. Shopping cart software can be considered as the best example for ecommerce software. It acts as the most essential factor that helps in differentiating online and offline shopping. Online experience has advanced a lot because of growth of broadband, and most of the sectors prefer broadband usage as compared to other connectivity since it is more productive.

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4.8 Glossary
Term Brick-and-mortar businesses Intangible Regulatory Stand-alone Threshold Description A traditional business that handles its customers involving a close contact in an office or store that the business owns or rents Unable to perceive by the senses particularly the sense of touch Limiting according to rules or principles Competent enough to operate independently The initial point for a new state or experience

4.9 Terminal Questions


1. 2. 3. 4. 5. 6. Explain briefly the three categories of e-commerce infrastructure. Explain briefly routers, firewalls, and digital switches. Explain any three common applications for server operating system. What are the factors considered when selecting a server software? What are the features that a shopping cart software must include? Define dial-up internet access, broadband internet access, leased line.

4.10 Answers
Answers to Self Assessment Questions 1. e-Commerce infrastructure 2. Electronic Commerce Environment 3. Router 4. Digital switch 5. Workstations 6. True 7. File sharing 8. Server Operating System 9. True 10. Web server 11. Free web server software 12. Shopping cart 13. Connectivity 14. Leased line 15. Broadband 16. Network structure
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Answers to Terminal Questions 1. Refer section 4.2 e-Commerce Infrastructure- An Overview. 2. Refer section 4.3 Hardware. 3. Refer section 4.4 Server Operating System. 4. Refer section 4.5.1 Server Software. 5. Refer section 4.5.2 e-Commerce Software. 6. Refer section 4.6 Network Website.

4.11 Case-Let
SM Calltones is a Europe-based company dealing with selling of computer and mobile phone products. It sells 1000s of computer and mobile phone products with customers all over the world. In the past, they were using a shopping cart which was not dependable and fast. Hence 6 months back, they decided to switch to Tenity after they tested and tried several other shopping carts. Since then, SM Calltones has not looked back as Tenity is fast in pace and is very reliable shopping cart which helped SM Calltones to improve their sales and then increase their customer base. Most of the shopping carts fail in maintaining the customer base. But one of the most significant factors of Tenity is that the customers keep coming back as Tenity is a fast, reliable, and user friendly shopping cart. In the present fast and changing market trends, Tenity helps in adding new or editing products at a faster pace more efficiently. Hence, the time used for updating the companys website has reduced to a greater extent. Tenity has also helped SM Calltones to get more time to help customers and negotiate with providers. This in turn has helped SM Calltones to provide more enhanced services and better prices as compared to other famous companies. Questions: 1. How has Tenity helped SM Calltones being a reliable shopping cart? Hint: Improve their sales. 2. What are the outcomes of using Tenity shopping cart by SM Calltones? Hint: Get more time to help customers. Link: http://www.kryptronic.com/cms-display/docs_case6.html
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References http://en.wikipedia.org/wiki/Router http://searchsecurity.techtarget.com/sDefinition/0,,sid14_gci212125,00. html http://encyclopedia2.thefreedictionary.com/Workstation+(computer+hard ware http://www.pcworld.idg.com.au/article/151491/server_operating_systems http://en.wikipedia.org/wiki/Category:Web_server_software

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