Information Systems: A Manager’s Guide to Harnessing Technology

1. Information Systems: A Manager’s Guide to Harnessing Technology

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

4. 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

5. 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

6. Learning Objectives • Discuss the benefits of Internet architecture in general, 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

7. 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, contrast circuit vs. packet switching, along with organizational benefits and limitations of each

8. 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

9. 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

10. Figure 12.2 – Anatomy of a Web Address

11. 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

12. 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

13. 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. 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

14. 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

15. 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

16. 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

17. 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

18. Figure 12.4 – TCP/IP in Action

19. 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

20. 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

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

22. 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

23. 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

24. 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

25. 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

26. 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

27. DSL – Phone Company Copper • DSL technology uses copper wire that 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

28. 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 multi-billion investments in FTTH for experimental and business reasons

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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