Bachelor of Business Administration Program ©Mathieu CHAUVET – 2014/2015 1 WEB SERVER HARDWARE AND SOFTWARE 2 Learning objectives In this chapter, you will learn about: Web server basics Software for Web servers E-mail management and spam control issues Web server hardware 3 1) Web Server Basics 4 Basic technologies to build online business Web sites Server software and hardware Utility function software Servers: have more memory and larger, faster disk drives Web browser software: also called Web client software and make computers work as Web clients Web site goals followed by site development estimations Number of visitors Number of pages viewed during an average visit How large pages will be Maximum number of simultaneous visitors 5 Platform neutrality of the Web 6 a) Meanings for “Server” Server: Computer providing files, making programs available to other computers connected to it through a network/ Software used to make files and programs available; as such, it may be part of the operating system (OS) Web server: Computer connected to the Internet Runs Web server software and makes server’s files available to other computers E-mail server: Handles incoming, outgoing e-mail Database server: Runs database management software Server describes several types of computer hardware, 7 software, providing any types of services to the company The way Internet actually works… Regarding message flows, server receiving request message from a client: Executes command included in message Retrieves Web page file from disk or other catalogues/databases supplying information to web server Creates response message: sent back to client 8 2) Software for Web Servers 9 a) Operating Systems for Web Servers Web server software may run on one or several computer operating systems Operating system tasks consist in larger system responsibilities such as running programs, allocating computer resources, providing input and output services, tracking multiple users, ensuring no interference, etc. Example of possible OS for Web Servers Microsoft server products Considered simple to learn and use Raise security concerns Linux Open-source, can be downloaded free from the Web Fast, efficient, easy to install 10 b) Web Server Software Commonly used Web server programs Apache HTTP Server, Microsoft Internet Information Server (IIS), Sun Java System Web Server (JSWS) Percent of Web active sites that use major Web server software products 11 3) Electronic Mail (E-Mail) 12 a) Email benefits E-mail: Electronic commerce most important technologies Used to gather information, execute transactions, perform other electronic commerce related tasks Most popular form of business communication Conveys messages in seconds Useful feature thanks to attachments: most important message part Reason why people have originally been attracted to the Web E-mail uses: Confirm receipt of customer orders, confirm shipment of items ordered, send information about a purchase to buyer, announce specials and sales, keep in 13 touch with customers b) Email drawbacks Time spent answering e-mail Managers: five minutes per e-mail Average person: two hours a day Creating resentment Computer virus Program attaching itself to another program, causes damage when host program activated Attachment can contain viruses Cost for e-mail convenience such for virus protection software, dealing with security threats 14 c) Spam Magnitude of spam problem Recent 24-hour period showed around 200 billion spam email messages sent Researchers believe spam growth has leveled off and appears to be declining slightly Until effective technical solutions implemented, 90% of all e-mail messages will continue to be spam 15 d) Solutions to the Spam Problem Methods to limit spam and its effects Passing new laws, leading to real and concrete threats Technical changes in Internet mail-handling systems Use existing laws and current technologies Requires cooperation from large numbers of organizations and businesses Teergrubing: launching a return attack by sending e-mail back to computer originating suspected spam Use tactics available for individual e-mail users Control e-mail address exposure Spammer software robots search for e-mail addresses Discussion boards, chat rooms, other online sources 16 4) Web Server Hardware 17 a) Server Computers Hosting e-commerce operations: Wide variety of computer brands, types, sizes used Small companies run Web sites on desktop PCs but most Web sites operate on computers designed for site hosting Comparing desktop PCs to server computers Servers use faster and higher-capacity hardware Costs: Low-end: $800-$1,500; More common: $2,000$200,000 Companies selling Web server hardware provide Web site configuration tools Housing Web server computers can be done through Freestanding cases or installed in equipment racks 18 b) Web Server Performance Objective: Provide site visitors with best service possible Elements affecting overall server performance: Hardware, operating system software, server software, connection speed, user capacity, type of Web pages delivered Connection speed Number of users server can handle: Important but hard to measure Response time: time server requires to process one request Choosing Web server hardware configurations Run tests on various combinations, consider scalability, 19 compare standard benchmarks c) Web server architecture Server farms: large collections of servers that are lined up row after row Centralized architecture: Uses a few large and fast computers Requires expensive computers More sensitive to technical problems Requires adequate backup plans Distributed architecture (decentralized architecture): Uses large number of less-powerful computers Spreads risk over large number of servers Uses less-expensive servers Emergence of Cloud Computing solutions! 20 What is Cloud Computing? What is Cloud Computing? Advantages? Disadvantages? 21 ELECTRONIC COMMERCE SOFTWARE 22 Learning objectives In this specific part, we are going to talk about: Finding and evaluating Web-hosting services Basic and advanced functions of e-commerce software Electronic commerce software for small and midsize businesses Electronic commerce software for midsize to large businesses Electronic commerce software for large businesses that have an existing information technology infrastructure 23 1) Web Hosting Alternatives 24 Web hosting alternatives Self-hosting Running servers in-house Most often used by large companies Third-party Web-hosting service providers Offer Web services, electronic commerce functions Often used by midsize, smaller companies Commerce service providers (CSPs) Provide Internet access and Web-hosting services Help companies conduct electronic commerce 25 Shared hosting Client's Web site on a server hosting other Web sites simultaneously Operated by the service provider at its location Dedicated hosting Client Web server not shared with other clients Service provider responsibilities Owns server hardware, leases hardware to client Maintains Web server hardware, software Provides Internet connection Finding service providers Local telephone directory Web directories (Google Directory) 26 2) Basic Functions of Electronic Commerce Software 27 Electronic commerce software needs determined by: Expected enterprise size Projected traffic and sales Budget Consider online store creation costs versus brick and mortar costs Consider external or in-house host costs All electronic commerce solutions must provide: Catalog display (listings of goods and search engine) Shopping cart capabilities (tracking items selected, cookies) Transaction processing (switch into secure communication state) 28 Basic electronic commerce Web site architecture 29 3) Advanced Functions of Electronic Commerce Software 30 a) Databases Database Collection of information stored on a computer in a highly structured way Database manager (database management software) Makes it easy for users to: Enter, edit, update, retrieve information in the database Examples: Microsoft Access, IBM DB2, Microsoft SQL Server, Oracle 31 b) Middleware Middleware software: Takes sales and inventory shipments information from electronic commerce software Transmits to accounting and inventory management software Companies can either develop their own middleware or purchase customized middleware In the last case, they need to pay a significant attention to interoperability between systems, i.e. making information systems work together Cost range: $50,000 to several million dollars Major middleware vendors: BEA Systems, Broadvision, Digital River, IBM Tivoli Systems 32 c) Enterprise Application Integration E-commerce organizations own a certain number applications, i.e. programs performing specific functions of Problem? These programs have distinctive data formats that must be edited and reformated Application integration) integration (enterprise application Creation of links among scattered applications Interconnects organization’s business logic Accomplished by programs transferring information from one application to another 33 d) Integration with ERP Systems Enterprise resource planning (ERP) software packages Business systems integrating all facets of a business Accounting, logistics, manufacturing, marketing, planning, project management, treasury functions Common databases for any of these functional applications Two major ERP vendors: Oracle and SAP ERP software installation costs Between $2 million and $25 million 34 ERP system integration with EDI 35 e) Web Services Web services Software systems supporting interoperable machine-tomachine interaction over a network Set of software and technologies allowing computers to use the Web to interact with each other directly without humans directing the specific interactions What Web services can do Offer improved customer service, reduced costs Provide data feeds between two different companies 36 4) Electronic Commerce Software for Small and Midsize Companies 37 Most of these entities use basic Commerce Service Providers (CSPs) CSPs offer free or low-cost e-commerce software Electronic commerce sites kept on CSP’s server, provider keeps server working through storms and power outages Cost: less than $20 per month Software built into CSP’s site Designed for small online businesses: Selling few items (no more than 50) Incurring relatively low transaction volumes (fewer than 20 transactions per day) Examples: ValueWeb, ProHosting.com, 1&1 Internet, Yahoo! 38 Yahoo! Merchant Services page 39 b) Mall-Style Commerce Service Providers Provides small businesses with their own store and: Online store design tools and storefront templates Easy-to-use interface Web page-generation capabilities Page maintenance Shopping cart software capabilities Payment processing services Main mall-style CSP: eBay stores Cost: less than $20 per month One-time setup fees Percentage of (or fixed) amount for each transaction Basic and mall-style CSPs provide data-mining capabilities 40 c) Estimating Operating Expenses for a Small Web Business Approximate costs to put a small store online 41 Estimated costs for self-hosting a Web site Setup and Web site maintenance $3000 to $20,000 (one time) High-bandwidth Internet connection $600 and $12,000 per year Secure server room: $5000 a year Technicians to monitor and maintain equipment $50,000 to $100,000 annually Annual total costs: $60,000 to $100,000 42 5) Electronic Commerce Software for Midsize to Large Businesses 43 Costs of larger sites: more difficult to estimate Largest element as integrating Web site with existing systems Midsize businesses: start-up costs $100,000 to $500,000 Recurring annual costs: about half that amount Large businesses: start-up costs $1 million and $50 million 50 percent of the launch cost every year to operate, maintain, and improve the site 44 After Web site creation, these companies look to add purchased software elements and content management software and create the middleware Buying and using midrange e-commerce software More expensive than using a CSP: $2000 to $50,000 Midrange software traditionally offers connectivity to database systems Store catalog information Connections into existing inventory and ERP systems Most important midrange electronic commerce systems Intershop Enfinity WebSphere Commerce Suite by IBM Commerce Server by Microsoft 45 6) Electronic Commerce Software for Large Businesses 46 Larger business requirements: Same advanced capabilities as midsize firms Ability to handle higher transaction loads Dedicated software applications Handling specific online business elements Distinction between midrange and large-scale electronic commerce software Price Extensive support for business-to-business commerce 47 Enterprise-class software Commerce software for large-scale systems Describes system serving multiple locations of one company Encompasses all areas of the business or enterprise Software provides tools for B2B and B2C commerce Interacts with wide variety of existing systems such Database, accounting department, ERP infrastructure, etc. Costs: $100,000 to $10 million Requirements: Several dedicated computers, Web server system, firewalls Enterprise-class product examples: IBM WebSphere Commerce Enterprise, Oracle E-Business Suite, Broadvision products 48 Provides standard B2B activities Secure transaction processing and fulfillment Interaction with firm’s inventory system Making proper stock adjustment Issuing purchase orders for needed supplies Generating other accounting entries B2C situations Customers use Web browsers to locate and browse company’s catalog Electronic goods downloaded directly Web server linked to back-end systems Merchant server houses the e-business system and key backend software (payments, shipping and taxes, etc.) 49 Typical enterprise-class electronic commerce architecture 50 b) Customer Relationship Management Software Customer relationship management (CRM) software Obtains data from operations software Gathers data about customer activities Uses data to conduct analytical activities Basic form of CRM Uses customer information to sell more goods or services CRM business importance Maintaining customer loyalty and positive, consistent contacts at the purchasing company Examples: Oracle Siebel CRM Applications, SAP CRM, Salesforce.com (Cloud Computing) Costs: $25,000 to millions of dollars 51 c) Supply Chain Management Software Helps companies to coordinate planning and operations with industry partners Two general function types: planning and execution SCM planning software: Develops coordinated demand forecasts by using information from each participant SCM execution software: Helps with warehouse and transportation management Major firms offering SCM software: i2 Technologies and JDA Software Costs: Varies tremendously depending on number of locations in the supply chain Example: retailer with 500 stores, between $3 million and $10 million 52 d) Content Management Software Controls large amounts of text, graphics, media files Importance heightened due to: Increased use of smart phones, netbook computers, tablets, etc. E-commerce software may come with wizards and other automated helpers for creating template-driven pages Businesses often customize Web pages with company and product pictures and text Examples: IBM, Oracle, EMC and Open Text Corporation Costs: Between $100,000 and $500,000 Customization, configuration, implementation costs may add three or four times the cost of software 53 e) Knowledge Management Software Systems managing knowledge itself rather than documentary representations of that knowledge Four main tasks: Collect and organize information Share information among users Enhance ability of users to collaborate Preserve knowledge gained through information use for future users’ benefit Major software vendors: IBM, Microsoft SharePoint, BMC Software, CustomerVision Costs: $10,000 to $1 million or more 54