Web Trends and Technologies

Web Trends and Technologies

David Strom david@strom.com

(516) 944-3407

T6 11/1/99

NGN99 T6 (c) 1999 David Strom

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Outline

• Web basics and protocols

• New web technologies and trends

• New eCommerce technologies

• eCommerce Service Options

• Storefront design basics


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Goals

• Describe and demonstrate new web products and services

• Articulate some web futures

• Debunk some myths

• Provide the foundation for making your own technology choices


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Topic 1: Web Basics and

Protocols

• HTML vs. HTTP

• SET vs. SSL

• XML vs. OBI


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HTML vs. HTTP

• History lessons

• Similarities and differences


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HTML

• Markup language of the web

• Describes the structure and content of a page

• Contains both display control and the actual content itself

• Developed first for document distribution, later used for publishing


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Word Processing History

• Wylbur (1974-80)

• TeX and other VT page editors (1976-85)

• NBI, Xerox, Vydec word processors (1977-

83)

• Multimate/Wang (1982-5)

• Word Perfect (1984-96)

• MS Word (1992-)

• HTML (1993-)


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HTML History

• v 1.0

: early 90s

• HTML+: 1993

• v 2.0

(RFC 1866, forms): 1995

• v 3.0

(tables, frames): 1995, schism between Netscape and

Microsoft

• v 3.2 (style sheets): adopted 1996

• v 4 : 1998, three versions proposed by W3C, but nothing really adopted yet

• XHTML: 1999, a marriage of XML and HTML

(see www.w3c.org

)


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Lessons Learned

• Dedicated machines with incompatible formats

• New hardware platforms every 3-4 years

• Alternating between WYSIWIG and tagged text


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HTML Features

• Operating system independent

• Browser independent

• The user controls the browser

• The author controls organization

• The server controls -- well, not much!


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HTML Goals

• Interoperability (I can read your docs)

• Cross-platform compatibility (Macs can read PC docs)

• Collaborate with my colleagues (We can jointly author docs)


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HTML Realities

• New tags don’t have the same impact of yore

• Netscape/Microsoft battle is still relevant but not significant (remember D-HTML?)

• Look to XML for most interesting innovations in the near future


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HTTP: A Brief History

• Developed by CERN in 1990/1

• Became open source in 1992/3

• The server side of things


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Typical HTTP Conversation

• Open connection from browser to server

• Request a particular page and other objects

• Server responds, delivers data if possible

• Close the request


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HTTP is Stateless

• Each page request is independent

• Servers have short memories

• One-at-a-time processing

• This has all sorts of problems for web shopping or tracking browsers over extended time periods


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So How to Fix This?

• Use cookies or crypto certificates to keep track of users

• Run scripts or programs on your web server

• Use a database server and logins to keep track


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SET vs. SSL


• Protocol descriptions

• Practical applications


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SSL: Encrypt Transactions

• Why encrypt?

• Principles of cryptosystems

• Understand certificate management


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Why Encrypt? TRUST!

• Ensure your customer is authorized to use his account

• Customer wants to make sure you are the legit seller

• Ensure payment is received

• Ensure goods are received


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Steps in SSL Certificate Creation

• Select a CA to use and fill out their forms and pay them

• CA verifies information provided

• CA creates a certificate containing public key and expiration date

• The certificate is stored on your web server


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Hierarchy of Trust for Certificate

Issuance

• Visa and MasterCard will designate or become CAs

• Merchants trust these issuers or their banks

• Cardholders will obtain certificates from their banks’ CA and store in electronic wallet


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Examples of Certificate

Authorities

• VeriSign

– www.Verisign.com

• GTE CyberTrust Solutions, Inc.

– www.cybertrust.gte.com

• Thawte Consulting

– www.thawte.com


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Certificate Creation

• Demo of key generation and certificate request


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Verisign Server Certs

• www.verisign.com/server/prod

• Different features, ranging in price from

$349 to $1295/year

• Offer different warranties, encyrption levels


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Certificate Management

• Once public key certificates are issued, they must be managed to maintain integrity

– They contain expiration dates

– They may be revoked for various reasons

– Upon expiration, certificates must be renewed or reissued

• This is a consideration for using an external

CA, as opposed to managing an internal CA


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How is this accomplished?

• Secure servers and browsers

– Capable of strong encryption (up to 128 bit)

– 40 bit encryption is no longer considered adequate for financial transactions

• Digital certificates

• Ensure the identity of the certificate holder

• Also called digital IDs

• The common protocol in use today is Secure

Sockets Layer (SSL)


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Secure Sockets Layer (SSL)

• Authenticates the merchant server

– Merchant Certificate obtained from trusted Certificate

Authority

• Provides privacy through encryption of the message for both the sender and receiver

– Secure “pipe” negotiates maximum encryption compatible at browser and server for each message transmitted

• Ensures integrity of data transmitted

– Message authenticity check (algorithm)


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Secure Sockets Layer Protocol

(SSL)

Merchant’s Certificate (Digital ID) can be viewed by any secure browser

• https:// in the URL = a secure connection

• SSL allows customers to verify who the merchant is

• The merchant’s digital ID does not certify the integrity of the merchant


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Secure Sockets Layer Protocol

(SSL)

Customer Order with

Payment Information

Encrypted order sent

Customer order decrypted at merchant server

• SSL encrypts the customer order, which includes the payment information

• This data is sent from the customer to the merchant via a secure “pipe”


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What SSL

Doesn’t

Encrypt

• Once the data arrives on the secure server, it could be stored in an insecure location!

• Or if someone has physical access to your desktop or server


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Encryption Strength

• It is illegal to export outside the US products containing encryption that is stronger than 40 bits

• It is not illegal to use encryption stronger than 40 bits internationally

• Financial institutions do not consider 40-bit encryption adequate for Internet transactions


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Encryption Strength

• Newer browser and server software are capable of 128-bit encryption

• 128-bit encryption is exponentially stronger than 40-bit encryption


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SET: Authenticate Buyers

• What is the protocol

• How it works

• Advantages and disadvantages


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What is SET protocol?

• Secure Electronic Transaction protocol is a common standard that was developed jointly by Visa, MasterCard and other partners to ensure the processing of secure transactions.

• Based on RSA encryption

• Uses public and private key pairs that have a mathematical relationship


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How is SET Different from SSL?

• Digital certificates for SET will be paymentspecific

– Merchants will be certified as legitimate to accept branded payment card transactions

– Cardholders will be certified as valid account holders

– Merchants will not see customer’s account number

(it will only be passed to the acquirer)


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How is SET Different from SSL?

With SET:

Merchant Server gets Customer’s Digital ID

minus the account number + Customer Order

Customer’s Digital ID related to a specific account

+ Customer Order info

Acquirer gets order receipt +

Customer’s Digital ID with account number


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The Mechanics of SET

• (1) Payment info sent from user to merchant

• (2) Merchant confirms, fees charged

• (3) Transaction to bank, funds debited/credited

• (4) Merchant sends item to user


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MasterCard ® Example of a SET

Transaction http://www.mastercard.com/set/screen1.html


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SSL vs. SET

SSL

• Server authentication

– Merchant certificate as legitimate business

• Possible for client authentication

– Not tied to payment method

• Privacy

– Encrypted message to merchant includes account number

• Integrity

– Message authenticity check


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SET

• Server authentication

– Merchant certificate tied to accept payment brands

• Customer authentication

– Digital certificate tied to certain payment method

• Privacy

– Encrypted message does not pass account number to merchant

• Integrity

– Hash/message envelope

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Is SET the Answer to eCommerce?

• SET has been proposed as the answer to secure and interoperable eCommerce

– It is not currently mandated by Visa and

MasterCard

– There are big implementation issues for all concerned

• The SET protocol is definitely more secure than SSL


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SET Issues

• Implementation of SET has some big drawbacks:

– Lack of interoperability among systems

– Management of public key infrastructure

– Distribution of digital certificates requires action on the part of the consumer

– Will banks want to become cert authorities?

• And who will pay for all this?

• Meanwhile, eCommerce goes on


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The Future of SET

• Non-repudiation of transactions through digital certificates for both merchant and customer

• SET may be the industry standard for payments, but yet to be implemented

• It will be far more difficult for a customer to claim no knowledge of a transaction

• Demonstrations continue


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Another View of SET (Lincoln

Stein)

“An over-engineered, committee-designed solution to a nonproblem, a boondoggle invented by hidebound credit-card companies panic-stricken over the prospect of not getting their piece of the Internet pie.”

WebTechniques, 8/98


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What About eWallets and SET?

• Verifone

® vWALLET SM

• GlobeSET (SET now, server-side non-SET later)

• Transactor/Citibank Wallet (Jscript bookmark)

• eWallet.com (only SSL)

• Microsoft Wallet (in Win98, IE 4.01) (both

SSL and SET)


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What’s in an eWallet?

• Credit card accounts

• Debit card accounts

• Checking accounts


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All of These Have in Common

• Access to your accounts

• Credit card and other account numbers are stored by the service provider in a database, or on your hard disk

• These numbers are not transmitted to the merchant

• Consumer must initiate account set-up in advance of making any purchases


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How Electronic Wallets Work

Today

• Consumer must initiate request for electronic “wallet” software

• Credit card or other account numbers are given to provider one time before any purchases are made

• Closed system: only available to participating merchants and cardholders who have signed up in advance


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How Electronic Wallets Will

Work in the Future

• With SET protocol, will contain digital IDs with encrypted account information

• Since digital IDs will be tied to specific accounts, wallets will keep track of all that information

• At that point, wallets will be widely distributed and universally accepted


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Interoperability is the Key

• Wallets will become widely used when the following events occur:

– Mass distribution of wallets to consumers is easily made

– Will be accepted by all merchants, regardless of wallet brand or payment brand


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eWallet Demonstration


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Some Problems with eWallets

• Not transferable to other wallets

• Tied to a single PC

• Not available for use at many web storefronts

• Just solve a small part of the overall payment process


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Trends

• eWallets will eventually go away

• SET becomes a server-side issue

• SSL still dominates eCommerce transactions for many years


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XML vs. OBI


• Protocol implications

• Practical applications


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XML History

• v .01: First XML working group, 1996

• v 1.0: Feb 1998

• To some extent, having a version number isn’t really that important!


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Key XML Points

• A method for putting structured data in a text file

• Looks a bit like HTML but isn't

• Is text, but meant to be read by computer programs

• Is new, but based on SGML like HTML

• Is license-free and platform-independent

• Is database and file-format independent


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How Did XML Come About?

• SGML was too thick for building new applications

– Complexity of building DTDs

– No standard syntax or parsers

• HTML was too thin

– New tags got stuck between MS and NSCP

– Adding scripts inside web pages dicey

– Never designed with data structures in mind

• Solution is XML!


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Why is XML a Better

Mousetrap?

• Syntax standard of < .. > and &’s and ;’s

• DTD is optional but ...

• Tags aren’t

• All of this makes for a better-formed document


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What about OBI?

• Open Buying on the Internet

• A bunch of standards: SSL, X12 EDI,

X.509 PKI

• Proposed 3/97, revised 6/98

• Emphasis is with OPEN and not point-topoint EDI

• Products from Netscape, Commerce One,

IBM, Epic Systems


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OBI Components

• Buyer (could be software or a person)

• Buyer’s server

• Seller’s server

• Payment authority/clearinghouse


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Typical OBI Process

• Buyer connects to web site with https

• Seller verifies buyer, then displays catalog

• Buyer fills out forms, submits order

• Seller checks transaction using certs

• Servers talk to each other and approve order

• Buyer server sends order up his chain for approval

• Seller determines how to get paid


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Unresolved OBI Issues

• Who owns the catalog (buyer or seller)?

• How much infrastructure is really needed to connect them?

• Does it compete with existing EDI solutions?

• Knitting together a solid solution is more than enumerating standards!


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Trends

• XML becomes more important and useful as number of products increase

• OBI implementations still lag and are far too complex for most site operators


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Topic 2: New Web Technologies

• Caching servers

• Distributed content providers

• Load balancing tools

• Web monitoring services

• Internet appliances

• Streaming media servers

• Web conferencing


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Some General Comments

• The browser is the defacto user interface and management tool

• The IP Internet is the defacto infrastructure

• ISPs aren’t just about access anymore

• Web applications need their own network infrastructure


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Caching Servers

• Overall purpose

• Typology

• Advantages and disadvantages


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Overall Purpose

• To move remote web content closer to the user

• Reduce transit time and overall network latency

• Reduce the world wide wait

• Really, what is involved is just a big hard disk!


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General Issues

• Freshness of cache: can you keep track of when objects change

• Bandwidth conservation to reduce updates to the cache and avoid uncachable items

• Size of the cache and where it is placed on your network

• Integration into existing web and Internet access strategy


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Types of Caching Servers

• Software-only

• Specialty appliance

• Software on Unix, other general OS


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Software Only Caches

• Began with Squid, evolved into Inktomi

• Novell, Microsoft have caches to web server line

•

(+): Inexpensive, convenient

•

(-):

Don’t scale well and difficult to admin


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Pre-packaged Unix Devices

• Installed Squid and tuned copy of Unix just for caching

• Cobalt, Network Appliance, PacketStorm

•

(+): Inexpensive, convenient

•

(-):

Don’t scale well and difficult to admin


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Specialty Cache Appliances

• Dedicated caching device, typically running its own OS

• Infolibria, Cacheflow, Cisco, Lucent

•

(+): Easy to admin, optimized for performance and reliability

•

(-): Costly and may need other network infrastructure improvements


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Server Issues

• Microsoft, Cisco and Entera servers all require their own software and protocols to be loaded on all network routers

• May have to change proxy setup in every browser

• May need additional network infrastructure


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Caching Resources

• Brian Davison’s comparison site www.web-caching.com/proxycomparison.html

• Internet Research Group www.caching.com/vendors.htm


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Trends

• More caching appliances as time goes on

• Better and cheaper caching devices appear

• Most ISPs will use them within a few years if they want to retain customers


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Distributed Content Service

Providers

• Problem: even the best cache can’t get around Internet congestion issues

• Solution: a new breed of providers who have extended co-location into content replication by using a series of products that do more than just caching pages


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What Do These Things Do?

• Balance and manage loads

• Distribute content to various data centers located on different continents

• Guaranteed quality of service levels and response times

• And, of course, cache your site!


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Vendors

• Sandpiper, Akamai, Mirror Image

• Skycache and Digital Island build on top of

Inktomi cache servers

• F5.com’s Global Site, merges distributed servers

• (+): Turnkey operation ala the best of the co-los, added redundant operations

• (-): Can be expensive


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Trends

• More and more providers appear

• Most ISPs will offer some kind of content replication as the next step in co-location

• Prices will drop as competition gets fierce


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Load Balancing, Web Switches and Redirectors

• Cisco Local Director

• Network Engines’ Cluster Control

• Arrowpoint's Content Smart

• Alteon WebSystems

• Foundry Networks Server Iron

• iPivot’s Commerce Accelerator


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How Do These Things Work?

• Typically installed between router and web server

• Sometimes have to reconfigure routers or proxy server entries

• Some include caching or proxy services

• Really are layer 4 (UDP, transport) switches that examine packets for web content

• Managed via web browser, of course!


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Notable Features

• Arrowpoint ignores obvious uncachable items

• Cisco does application server load balancing and domain load balancing

• Network Engines' ClusterControl handles content management/replication

• iPivot looks at ways to do SSL better, using inline crypto


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Issues

• Performance

• Overall response times

• Security

• Reliability

• More information, see www.nwc.com/913/913r2.html


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Trends

• Prices will remain high as these are specialty items

• Will compete with distributed content providers


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Web Monitoring Services

•

WebPartner.com

, monitor server uptime

•

Uptime , another one from Phil Grenspun

(uptime.arsdigita.com)

•

ServerSittter.com

, a monitoring card that fits inside NT machine

•

Manage.com

, for entire eCommerce transaction path


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Monitors, con’t.

•

Sitescope from freshtech.com and

Netiq.com

, network monitoring software

•

Tracerlock , notify you when a page mentions your keywords (peacefire.org)

•

NetResolve , monitoring your site from 25 cities


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Why Use These Things?

• Outsource a key element of your data infrastructure

• Use the Internet to check up on itself

• You want your web up as much as your mainframe but don’t have the staff or skills to do it


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Example: WebPartner’s Services

• Free web-based registration

• Monitors set of URLs

• Notification via email when down and weekly reports

• Compares performance with a set of 100 other sites

• Demonstrate reports at www.webpartner.com


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Example: Manage.com’s Services

• Transactions performance and reliability

• Service chain analysis, including key infrastructure components

• Traffic loads: actual vs. expected

• User interface analysis

• Action plan for management

(all for $45k!)


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Trends

• More and more of these services will be available

• Free services will abound, some will actually be pretty good!

• Still need some market consolidation to be truly useful


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Internet Appliances

• Cobalt Qube

• Technauts eServer

• Encanto

• Technologics InstaGate


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What is an Internet Appliance?

• Pre-packed hardware and software

• Simple to setup, use and manage

– usually with a web browser

• Don’t have keyboards or monitors

• Integrate into existing Windows and other

NOS environments

– AppleTalk, IPX, UNIX/NFS

• Serves a variety of needs


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Target applications

• Small business Extranet

• SOHO/ROBO Intranet server

• Discussion Forum server

• Workgroup file/CD ROM sharing

• Firewall, VPN server

• Remote access router

• Remote access server

• Office email server


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Six categories of appliances

• Shared network storage

• Web server

• eCommerce server

• Security server

• Intranet applications server

• Communications server


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A partial taxonomy

Name, Company, URL

Qube 2700 WG

Cobalt Microserver Inc.

e.go Commerce

Encanto Networks

2200 SDSL Router

FlowPoint Corporation

WebRamp 300e

Ramp Networks

Price Categories

Range

999 Web

- 18999 Storage

Intranet

995 Web

499

- 799

eCommerce

Intranet

Intranet

Communications

499

- 849

Security

Intranet

Communications

Security


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General state of appliances

• Almost plug and play

• User interfaces intentionally limited

• Matching categories and needs not easy

• Setup of users and groups may be tedious

– Most not well integrated with NOS access controls

– Not an issue if this is first/only server

• Scalability?

– Units designed for small/branch office needs


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What features do you need?

Ask yourself, ask your vendor:

• If web or other Internet/Intranet server,

– How extensible? Expansion slots? Type?

– Type of built-in OS? Type of server software?

– How many ways to upload files to your web?

• If communications server,

– Types and number of network interface(s)?

• If security server,

– Firewall features? What VPN? Client software?


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Appliances: Pros

• Simplicity over NT & UNIX servers,

– especially for organizations with little or no OS admin expertise

• Reduced total cost of ownership

– Appliance may cost less than software to provide equivalent features

• Vendors seek to “user-proof” appliances

– limited access to OS, not as easy to shoot yourself in the foot

– Often more secure “out-of-box” than OS servers


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Appliances: Cons

• Can’t find and manage on corporate net

– not issue for those that support SMB/AppleShare

• May need more than browser to manage

– telnet, configuration wizards and monitors

• Separate access control, authentication

– Difficult to apply uniform user and group access controls across appliances and NOS systems

• How scalable are CPU,disk, networks


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Demonstration: Cobalt Qube

• For more information, check out my report at www.corecom.com/ia


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Trends

• More of them and cheaper too

• Still for SO/HO environments mainly, although that is changing

• Already some vendor consolidation


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Streaming Media Servers

• Microsoft NetShow (NT/Server-only but free)

• Real Server (NT and Unix but $$)


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Why Use These Products?

• Training films

• Corporate speeches and briefings

• Live broadcasts


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Pieces Required

• Web server

• Appropriate player

• Media server

• Encoding tools


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Steps to Production

• Record your event or arrange for live broadcast

• Encode your media

• Copy file to media server

• Post link on your web site to stream

• Make sure everyone has right version of players to view


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What Could Go Wrong?

Everything!

• Matching file formats with correct player versions (and picking the right .avi, .wav,

.au, MPEG, MP3, etc)

• Tying the web and media server applications together

• Setting up encoding sessions properly


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Trends

• Ease of use remains biggest obstacle

• Bandwidth-challenged users need not apply

• Encoders, file formats, et al. are getting more complex still

• Maybe some hope with MP3?


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Web Conferencing

• Differences and typology

• Issues

• Typical products


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Different Conferencing Types

• One to one, screen sharing

• One to many, broadcasting seminars

• Many to many, collaboration and distance learning


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Why Conference?

• Save money on travel costs

• Improve real-time customer support over the web

• Collaborate on work product


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Different Conferencing Data

Streams

• Just text chat, AOL IM and IRC

• Sending audio or video over the net

• Net for visuals, phone bridge for audio

• Real-time conference or stored/replayed lecture


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Conferencing Issues

• Too many pieces and products to fit together

• Three words: browser plug ins!

• Better bandwidth, low latency needed

• Can’t always share any desktop application

• Can get pricey


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Typical Products

•

Webex , for collaborations and product tours

•

Webline , for collaboration and screen sharing, chat and technical support (new email management system), using the phone out of band or VoIP inband

•

Webpodium , for video events and web presentations


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What Are They Good For?

• Regular sessions with the same attendees

• One-on-one or one-to-three meetings best

• Run tight control over computing environment of your attendees

• Have at least T-1 connection


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Trends

• Bandwidth-challenged issues as with streaming servers

• Audio/video synchronization still a big problem due to network latencies

• Live events can bring congestion quickly but lots of PR value (Victoria’s Secret as case in point)


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Topic 3: New eCommerce

Technologies

• 1Click payment providers

• eCommerce hosting vendors

• Personal shopping portals


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New Payment Providers

• 1Clickcharge.com

• qPass.com

• Cybercash’s InstaBuy.com

• eCharge.com

• Others


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First, Remember the Old

Payment Providers?

• Digicash

• Cybercash (first generation)

• First Virtual

• Mondex

• GlobeID


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Why Didn’t They Work?

• Too complex to implement

• Too much cumbersome infrastructure

• Not too many stores took their kind of money

• Too many other technical challenges

• Solved the wrong problem first (credit card snooping)


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How NOT to Design a Payment

Screen

• www.netmar.com/new/norderform.shtml


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Characteristics

• Mainly for digital content delivery

• Per day pass (WSJ)

• Charge 8- 12% per transaction

• Universal membership

• Don’t leave site while completing purchase


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Advantages

• Ease of use

• No credit card transmission over the

Internet


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Disadvantages

• Need to reach critical mass of users almost at launch

• Still rely on username/password combination which can be cumbersome

• Small companies without a lot of depth


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Ad networks/Link and Banner

Exchanges

• LinkExchange/Microsoft

• SmartAge.com

• Eliancecorp.com, charges % of net sales

• Netcentives’ ClickRewards


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ClickRewards

• Pays you in airline miles for your patronage

• Accrue miles on many sites

• You redeem benefits on their site


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Trends

• Is this deja vu all over again?

• It will take a lot to dislodge SSL as king

• Critical mass issue biggest obstacle


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Turnkey eCommerce Hosting

Providers

• GeoShop/Yahoo

• ViaWeb/Yahoo

• iCat

• Shopsite/Open Market

• iTool

• Shopzone

• Encanto


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GeoShop/Yahoo

• Builds on GeoCities “communities” but for merchants

( www.geocities.com/join/geoshops )

• $25/month for just commercial listings

• $180/month (or more!) for actual transactions

– working with Internet Commerce Services

Corp. who uses Open Market Transact servers ( www.icoms.com/pp.htm

)


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ViaWeb/Yahoo

• $100/month (<50 items) or $300/month options

• CyberCash processing $500 setup

• Solid reporting and admin options


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iCat Commerce Online Hosting

Solution

• Free for <10 items, $99/mo. for 100 items

• No per-transaction fees

• Email and browser-based notifications of purchase completion

• Advanced items like upsell, featured products, cybercash gateways


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ShopSite demo

• www.reliablehost.com/cgibin/bo/start.cgi

• Can now handle two concurrent currencies

• username: test8

• password: test


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iTool

• www.itool.com/admin/controlpanel.cfm

• $25-$100/mo.

• Username: dstrom/pwd+1


Inc.

132

Shopzone

• www.btsw.com

, $995

• Real-time credit card verification through

CyberCash

• Store builder and publisher functions to both NT and Unix web servers


Inc.

133

Encanto

• Turnkey server/software for free!

• Payment gateway included ($50 initial,

$70/month)

• Web storefront, shopping cart, catalog

• Also need secure cert, merchant bank acct.

• All managed via browser, steps are clearly documented

• Demo at www.encanto.com/ego/demo


Inc.

134

Personalized Shopping Portals

• Shopnow.com

• iGive.com for charities

• eBates.com


Inc.

135

ShopNow, eBates

• Each user registers and sets up own mini mall with links to stores

• Basic rebate program but large collection of stores


Inc.

136

iGive

• Percentage of sales goes towards charities

• Clickthroughs also are measured and accumulate $

• Members have earned $300k for charities so far


Inc.

137

Why Use These Services?

• Save money

• Build loyalty, return visits

• Make eCommerce easier? Not sure.


Inc.

138

Topic 4: eCommerce Service

Options

• Rent, Buy, or Build

•

Rent : outsource to a CSP

•

Buy suite of software

•

Build it yourself


Inc.

139

Find an CSP

• More ISPs are offering eCommerce solutions

• Have to use their software standards and payment schemes

• Could be pricey

• Just catching on in USA


Inc.

140

Evaluating CSPs

• Do they offer storefront design?

• Have in-house programmers?

• Hosting of your own web server machine?

• How many payment systems do they support?

• What kinds of accounting reports do they offer?


Inc.

141

The Catch-22 of CSPs:

• To be successful, a provider has to promote his products via the Internet and have detailed descriptions on their own web sites!

• But try to find this information isn’t easy.


Inc.

142

Some CSP Examples

• www.

psi .net/web/ecommerce.shtml

• www.

Best .com/bizcomm.html

• www.

Brainlink .com/html/

• www.

Earthlink .net

• IBM : mypage.ihost.com

• www.

Netcom .com

• business.

Mindspring .com/prodsvc/smbiz/

• www.

Mindrush .com/

• www.outer.net/ONCommerce


Inc.

143

Price Comparison assumptions

• 10 Mb disk storage

• Single email account

• InterNIC $75 fee included for domain name


Inc.

144

Provider

IBM

Earthlink

Netcom

Mindspring

Price Comparison

Setup fee (US$) Monthly fee

(US$)

260 55

295

450

175

100

300

324

Plan name, payment options

Bronze, credit cards

Starter Site

Commerce Site, credit cards

Commercial

Advantage, credit cards,

Cybercash

145 NGN99 T6 (c) 1999 David Strom

Inc.

Earthlink pricing explained

Program

Starter Site

Monthly fee

20

Total Access Acct.

20

SSL cert.

Domain fee

20

Ecommerce

TOTAL

40

100


Inc.

Setup fee

25

(waived)

10

75

175

210

146

One Way to Support Lots of

Payment Systems

• Wired-2-Shop

• www.wired-2shop.com/TestDrive/Admin/PaymentLi st.asp


Inc.

147

Storefront service providers

• www.sitematic.com, flat rate for

$40/mo

• www.stumpworld.com/Alpha

Software, $99, connects to Cybercash and OM Payment systems


Inc.

148

The Suite Approach

• Leading contenders

• What is part of the suite and what isn’t

• Prices and platforms


Inc.

149

Popular eCommerce Suites

Vendor, Product

Inex

Commerce Court

IBM

Net.Commerce

Version Price

3.2 $ 995

3.1

3.0

$5000 -

$20,000

$4600

Platform

NT

NT, AIX,

Solaris,

AS/400,

S/390

NT Microsoft

SiteServer Commerce

IBM/Lotus

Domino Merchant

2.0 $3500 -

$9000

NT


Inc.

150

Popular eCommerce Suites

(con’t)

Vendor, Product Version Price Platform

OM Transact

Open Market

Intershop Online

Intershop

WebSite Pro

O'Reilly

4.0

4.0

2.3

$250,000 Unix

$5000

$800

NT

Unix

NT, 95


Inc.

151

Four Typical Elements

• Catalog

• Storefront designer

• Ordering/inventory system

• Shopping cart/check out system


Inc.

152

The Cold Hard Reality of Suites

• Suites are nothing more than collection of products

• Lack integration among various elements

• Difficult to setup, customize, and use

• Require you to live “inside” their structure

• Limited payment options

• Sounds like early MS Office


Inc.

153

Payment Systems Included in

Each Suite

• Microsoft: Verifone, Buy Now

• IBM (Net.Commerce): Verifone, SET/eTill

• Domino Merchant: CyberCash, Verifone

• OpenMarket: Verifone

• WebSite Pro: IC Verify, PC Authorize,

CyberCash, others

• Intershop: CyberCash, ICVerify, others


Inc.

154

Sample Stores Included in Each

Suite

• Microsoft: 4 stores

• IBM: eMall, simple and advanced sample stores

• Domino: 1 store

• OpenMarket: none

• WebSite Pro: 1 bookstore

• Intershop: 3 stores


Inc.

155

Database Support

Product

Site Server

Net.Commerce

Inex Commerce iCat

WebSite

Intershop

Databases Supported

MS SQL, Oracle

DB2, Oracle

MS SQL, MS Access

4D, Sybase SQL Anywh

MS Access

Sybase SQL


Inc.

156

Dealing With ODBC

• Have to understand how to set up data sources

• Intimate knowledge of your data structure

• Re-install ODBC drivers at least once!

• Best to start with built-in database


Inc.

157

Store Wizards Included in Each

Suite

• Net.Commerce (the best)

• WebSite Pro (but doesn’t do much)

• Intershop (various wizards)

• MS Commerce (although you’ll really need to know COM!)


Inc.

158

WebSite Professional website.ora.com

• Version 2, shipping since 9/97

• US$799!

• NT (or 95)

• Supports seven different payment processors: SSL, CyberCash

• One sample store (bookstore)


Inc.

159

Sample storefront

• merchant.inline.net/admin


Inc.

160

WebSite Configuration Sheet


Inc.

161

Store Properties

• Only can operate a single payment system

• Run on a series of Access databases

• Built-in tax table, but for N.Americans!

• Well documented data structures in typical

O’Reilly fashion


Inc.

162

Recommendations

• Lowest priced suite by far!

• iHTML is robust, but will take some learning

• Nice store setup and organization of catalog

• Good low-end solution

• Other alternatives: ShopZone

( www.btsw.com

), Alpha Merchant

( www.alphasoftware.com

)


Inc.

163

Intershop

• demo at demo.intershop.com (admin/admin for store)

• Includes Sybase SQL 11

• US$5000, includes 3 mos. support


Inc.

164

Seven Different Managers

• Catalog

• Products

• Store

• Purchases

• Inventory

• Customers

• Admin


Inc.

165

Characteristics

• Everything managed via browser, which can get tedious

• But you already have a database behind it


Inc.

166

Payment Options galore


Inc.

167

Recommendations

• Most flexible payment options of any suite

• Better at processing orders than site creation

• Not good for large catalogs


Inc.

168

Microsoft SiteServer Commerce

• Still evolving

• More of a development platform than a suite

• Closely tied to IIS, SQL Server et al.


Inc.

169

Shopping with MS Commerce


Inc.

170

Recommendations

• If you are going to use any other MS apps

• If you don’t mind doing lots of integration on your own

• If you must stay on the cutting edge of MS products

• Look at www.siteserver101.com

for more tips

• You’ll need at least one other piece ...


Inc.

171

ClearCommerce.com Merchant

Engine

• Complements Site Server for payments

• Handles real-time credit card processing, fraud detection (via email)

• Works with MS Order Pipeline, DCOM and

ASP components


Inc.

172

Commerce Server Specifics

• NT, fast Pentium with 256 M RAM essential

• US$5000

• www.microsoft.com/commerce


Inc.

173

Inex Commerce Court

• Two different versions: Lite ($595) and Pro

($995)

• Runs on top of NT/IIS

• Comes with catalog, publishing functions

• Includes accounting links


Inc.

174

IBM Net.Commerce


Inc.

175

Included

• IBM’s Go Web Server

• DB2 database

• Shopping trolley system

• Credit card verifier, eTill software


Inc.

176

Several ways to setup your store

• Use nine-step wizard with populated catalog

• Use wizard with empty catalog

• Start from scratch

• Import existing databases


Inc.

177

Recommendations

• Great if you already use DB2 for inventories

• Most security-conscious suite

• More depth than iCat

• Start with all IBM defaults to save time


Inc.

178

Net.Commerce Specifics

• NT, fast Pentium with 256 M of RAM

• AIX, 390, OS/400, Solaris

• US$5000 Start, $20,000 Pro

• www.internet.ibm.com/net.commerce


Inc.

179

Latest features

• “Intelligent Catalog”

• Java-based wizards to setup and manage store

• Recognizes shopping preferences and upsells

• Improved SET payment server, ad tracking partnerships

• Integration with Domino Merchant


Inc.

180

Domino Merchant v2.0

• Uses Notes server, but not Notes clients

• Payments, catalogs, wizards galore

• Easiest to setup, difficult to add products

• A good entry-level product for now

• Screencam demo


Inc.

181

OpenMarket

• High end solution

• Worldnet offers hosting of OM servers

• Still needs customization!


Inc.

182

Recommendations

• If you can afford it ....

• Really the price covers lots of consulting time

• High transactions and throughput needs

• Use with Icoms.com front end service

($1000 + $100/month)


Inc.

183

OpenMarket Specifics

• Various Unix

• US$250,000 and up!

• www.openmarket.com


Inc.

184

Trends

• Suites will get better, but no one will really care

• Rental options will continue to get cheaper and more functional

• Web/database integration still difficult problem that suites are ignoring

• Backoffice integration still difficult problem but getting better


Inc.

185

Topic 5: Good and Bad Web

Storefront Design


Inc.

186

Sad State of Today’s eCommerce

Marketplace

• Poor quality tools

• Hard-to-find stores

• Limited payment methods

• Credit card snooping perceptions

• Older browser versions can’t view latest sites


Inc.

187

Case in Point: Buying a Bike

Rack

• Item not carried: outdated catalog

• Telesales not familiar with web

• No cross-sell or substitutions online

• Needed three phone calls to complete purchase


Inc.

188

Let’s Learn From the “Real

World”

• Compare what works for physical stores

• Try to extend to the web


Inc.

189

Critical Success Factors for

Physical Storefronts

• Location

• Branding

• Good service

• Good product selection

• Proper pricing and margins

• Traffic


Inc.

190

First Problem:

• None of these translate on the ‘net!


Inc.

191

Now Try to Agree on Definitions for Web Stores

• What determines a good location?

– Position on a search page

– Nearness to popular destination

– Ad on a popular server

• What determines branding?

– Memorable domain name

– Popular search category destination


Inc.

192

An Example of bad location:

Montana Meats

• www.imt.net/~lingerie/buffalo/buff alo.html

• Can’t they afford their own domain name?

• www.company.com/~anything is BAD

NEWS!


Inc.

193

Email Receipts Should Contain the Following Items

• Total price, including shipping

• Your address and the store’s

• Items ordered

• Whether they are in stock or not

• When they shipped

• Bonus: order number and URL to view this info online


Inc.

194

When to Send a Customer Email?

• To acknowledge the order was placed

• To say items shipped (or not ) and money changes hands


Inc.

195

Determining Traffic

• Hard to do -- is it hits, page views, registered users?

• [HITS = How Idiots Track Success]

• Hard to measure -- do you count gifs? Use log files?

• No general agreement on any metrics!


Inc.

196

Does a site actually have to sell something?

• Many actual eCommerce sites don’t do the complete transaction

• Require faxes or telephone calls!

• Some merely have catalogs

• Examples: Singapore Power Authority www.spower.com.sg/readmeter.cgi?cm

d=form

• Cisco Connection Online


Inc.

197

Principles of Good eCommerce

• Easy to find merchandize

• Good service

• Individual customization is key

• Simple navigation

• Make payments easy

• Make buyer feel transaction is secure


Inc.

198

AMP Connect

• Have customers in 100 countries

• Speak many languages

• Produce 400 catalogs covering 135,000 items

• Mailings cost US$7MM/yr

• Fax back cost US$800,000/yr

• But you can’t buy anything directly!


Inc.

199

Solution: “Step Searching”

• Saqqara.com software to enhance Oracle database

• Provide user feedback as they do the query

• Show how many matches in the database

• Different mechanisms for searching:

– by part number

– by alphabetical names

– by part family

– by picture even


Inc.

200

AMP


Inc.

201

AMP Connect (con’t)

• And can set to list parts that are available in specific countries!

• Updated daily with over 200 item changes

• Detailed drawings saves time for customers to pick the right item

• Saved AMP over US$5MM in production costs

• Saved US$1MM in translation costs


Inc.

202

Danish eShopper Survey (2/99)

• Why people shop on the web: http://www.useit.com/alertbox/9902

07.html

• Convenience and ease of use are the main reasons people buy

• After you have deliberately looked for information about a product or service, how often do you buy it? Almost always, 2%!

• Only 5% of their visits to eCommerce sites are to buy!


Inc.

203

First Principle of eCommerce:

• Make it easy to buy!


Inc.

204

Amazon.com

• Services frequent readers with a variety of programs

– Editorial comments

– If you liked this book, you’ll like...

– Notification of new books by author, topic

– Simplified “1 Click” ordering

• Uses simple pages and email

• Associates program for commission kickbacks

• Gift certificates via email


Inc.

205

Use Affiliates Programs Wisely

• They bring traffic to your doorstep

• Nice revenue sharing model

• Lots of them to choose from to model your own on:

– AssociatePrograms.com

– Refer-it.com


Inc.

206

Amazon vs Borders

• Cookies vs logins

• www.borders.com/msprotect/ncommerce/;order/list

?status=C

• Who makes it easier to buy books?


Inc.

207

Now Look at Hatfactory.com

• Easy to pay and track your purchases

• Clean and effective use of graphics

• Innovative use of cookies

• Demo (with 2 browser windows)


Inc.

208

Update your directories!

• This one is almost a year old

• www.asiapage.com/alist.html#jewellery


Inc.

209

Another Side of Service: Repeat

Business

• Make the shopper feel part of the family

• Shopping as entertainment (online auctions)

• “Do what I mean” search function (Amazon again looks at common misspellings made in the previous 24 hours for book searches)

• Periodic targeted email updates and reminders


Inc.

210

Second Principle of eCommerce:

• Deliver solid service!


Inc.

211

Dell positives

• Most notable site for computer buyers

• Customize the features you want via a web form

• Simplifies and personalizes the shopping experience

• WYSIWYB (buy)


Inc.

212

Dell problems

• Site is now very complex

• Print ads contain “eValue” codes

• Too many pages to get to actual PC configuration


Inc.

213

Canadiantire.com

• eFlyer uses email notification along with web forms

• Customize exactly what coupons and deals are sent to you


Inc.

214

Third Principle of eCommerce:

• Individual customization is key


Inc.

215

BMW Motors

• Example of what not to do

• Use gratuitous graphics

• Cheesy low-res videos

• Toys, not tools


Inc.

216

BMW


Inc.

217

Compare with Subaru

• Find specific information about each car

• Can price options to your particular needs


Inc.

218

A better example: fishing licenses

• Simple, quick, and does the job with a minimum of clutter

• www.permit.com


Inc.

219

Fourth Principle of eCommerce:

• Make navigation simple!

• Use small graphics, site maps, indexes

• Avoid graphics just to display text

• Avoid plug-ins, Jscripts to complete purchase process

• Avoid link and button clutter, frames


Inc.

220

Common mistakes with payments

• Provide too few or too many order confirmation pages

• Confusing methods and misplaced buttons on order page

• Make it hard for customers to buy things

• Don’t make your customers read error screens


Inc.

221

Fifth Principle of eCommerce:

• Make payments easy!


Inc.

222

Making the Buyer Feel Secure: the Six Components of eCommerce Trust

• Seals of approval, logos of credit card co’s

• Identifiable brand name

• Ease of navigation

• Order fulfillment easy to understand

• Clear purpose and site presentation

• Fast and simple technology

(Cheskin Research)


Inc.

223

Perceptions of Credit Card

Snooping Still Exist

• But are largely popularized by media, not consumers!

• Internet fraud stories are still common from both buyer and seller sides

• Just starting to see authentication services

(such as Cybersource) ramp up

• Trust will take a long time


Inc.

224

Sixth Principle of eCommerce:

• Make the buyer feel secure!


Inc.

225

Summary

• New web technologies being created at a furious pace

• eCommerce still far from easy and obvious

• Still lots of room for improvement in storefront design


Inc.

226

Web Trends and Technologies

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