Web Trends and Technologies
David Strom
[email protected]
(516) 944-3407
T6 11/1/99
NGN99 T6 (c) 1999 David Strom
Inc.
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Outline
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Web basics and protocols
New web technologies and trends
New eCommerce technologies
eCommerce Service Options
Storefront design basics
NGN99 T6 (c) 1999 David Strom
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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
NGN99 T6 (c) 1999 David Strom
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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 (197783)
• Multimate/Wang (1982-5)
• Word Perfect (1984-96)
• MS Word (1992-)
• HTML (1993-)
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HTML History
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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
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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
NGN99 T6 (c) 1999 David Strom
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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
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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
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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
• Similarities and differences
• 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
NGN99 T6 (c) 1999 David Strom
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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
NGN99 T6 (c) 1999 David Strom
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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)
NGN99 T6 (c) 1999 David Strom
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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
NGN99 T6 (c) 1999 David Strom
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The Mechanics of SET
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(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
NGN99 T6 (c) 1999 David Strom
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MasterCard® Example of a SET
Transaction
http://www.mastercard.com/set/screen1.html
NGN99 T6 (c) 1999 David Strom
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SSL vs. SET
SSL
• Server authentication
– Merchant certificate as
legitimate business
• Possible for client
authentication
SET
• Server authentication
– Merchant certificate tied to
accept payment brands
• Customer authentication
– Not tied to payment method
– Digital certificate tied to
certain payment method
• Privacy
• Privacy
– Encrypted message to
merchant includes account
number
– Encrypted message does not
pass account number to
merchant
• Integrity
• Integrity
– Message authenticity check
– Hash/message envelope
NGN99 T6 (c) 1999 David Strom
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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
NGN99 T6 (c) 1999 David Strom
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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
NGN99 T6 (c) 1999 David Strom
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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
• 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)
SM
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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
NGN99 T6 (c) 1999 David Strom
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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
NGN99 T6 (c) 1999 David Strom
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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
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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
• Similarities and differences
• 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?
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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
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Buyer (could be software or a person)
Buyer’s server
Seller’s server
Payment authority/clearinghouse
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Typical OBI Process
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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
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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
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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
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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
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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
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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
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Shared network storage
Web server
eCommerce server
Security server
Intranet applications server
Communications server
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A partial taxonomy
N am e, C o m p an y, U R L
Q u b e 27 00 W G
C o b alt M icro serv er In c.
e.go C o m m erce
E n can to N etw ork s
2 200 S D S L R ou ter
F lo w P o in t C orpo ration
W eb R a m p 30 0e
R am p N etw o rk s
P rice C ateg o ries
R an g e
9 99 W eb
- 189 99 S to rag e
In tran et
9 95
W eb
eC o m m erce
In tran et
4 99
In tran et
- 799
C o m m u n icatio n s
S ecu rity
4 99
In tran et
- 849
C o m m u n icatio n s
S ecu rity
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General state of appliances
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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
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Shopzone
• www.btsw.com, $995
• Real-time credit card verification through
CyberCash
• Store builder and publisher functions to
both NT and Unix web servers
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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
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Personalized Shopping Portals
• Shopnow.com
• iGive.com for charities
• eBates.com
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ShopNow, eBates
• Each user registers and sets up own mini
mall with links to stores
• Basic rebate program but large collection of
stores
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iGive
• Percentage of sales goes towards charities
• Clickthroughs also are measured and
accumulate $
• Members have earned $300k for charities so
far
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Why Use These Services?
• Save money
• Build loyalty, return visits
• Make eCommerce easier? Not sure.
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Topic 4: eCommerce Service
Options
•
•
•
•
Rent, Buy, or Build
Rent: outsource to a CSP
Buy suite of software
Build it yourself
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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
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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?
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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.
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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
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Price Comparison assumptions
• 10 Mb disk storage
• Single email account
• InterNIC $75 fee included for domain name
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Price Comparison
P ro v id e r
S e tu p fe e (U S $ )
M o n th ly fe e
(U S $ )
IB M
260
55
E a rth lin k
295
100
S ta rte r S ite
N e tco m
450
300
C o m m e rce S ite
cre d it ca rd s
M in d sp rin g
175
324
C o m m e rcia l
A d v a n ta g e ,
cre d it ca rd s,
C y b e rca sh
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paym ent
o p tio n s
B ro n z e , cre d it
ca rd s
145
Earthlink pricing explained
Program
Monthly fee
Setup fee
Starter Site
20
25
Total Access Acct. 20
(waived)
SSL cert.
10
20
Domain fee
75
Ecommerce
40
175
TOTAL
100
210
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One Way to Support Lots of
Payment Systems
• Wired-2-Shop
• www.wired-2shop.com/TestDrive/Admin/PaymentLi
st.asp
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Storefront service providers
• www.sitematic.com, flat rate for
$40/mo
• www.stumpworld.com/Alpha
Software, $99, connects to Cybercash
and OM Payment systems
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The Suite Approach
• Leading contenders
• What is part of the suite and what isn’t
• Prices and platforms
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Popular eCommerce Suites
V en d o r, P ro d u ct
V ersio n
P rice
P la tfo rm
In ex
C o m m erce C o u rt
3 .2
$ 995
NT
IB M
N et.C o m m erce
3 .1
$5000 $ 2 0 ,0 0 0
M icro so ft
S iteS erv er C o m m erce
3 .0
$4600
N T , A IX ,
S o la ris,
A S/400,
S/390
NT
IB M / L o tu s
D o m in o M erch a n t
2 .0
$3500 $9000
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NT
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Popular eCommerce Suites
(con’t)
V en d o r, P ro d u ct
V ersio n
P rice
P la tfo rm
O M T ra n sa ct
O p en M a rk et
4 .0
$ 2 5 0 ,0 0 0
U n ix
In tersh o p O n lin e
In tersh o p
4 .0
$ 5 0 00
NT
U n ix
W eb S ite P ro
O 'R eilly
2 .3
$800
N T, 95
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Four Typical Elements
•
•
•
•
Catalog
Storefront designer
Ordering/inventory system
Shopping cart/check out system
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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
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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
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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
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Database Support
P ro d u ct
D atab ases S u p p o rted
S ite S erv er
M S S Q L , O racle
N et.C o m m erce
D B 2, O racle
In ex C o m m erce
M S S Q L , M S A ccess
iC at
4D , S y b ase S Q L A n y w h
W eb S ite
M S A ccess
In tersh o p
S y b ase S Q L
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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
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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!)
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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)
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Sample storefront
• merchant.inline.net/admin
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WebSite Configuration Sheet
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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
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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)
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Intershop
• demo at demo.intershop.com (admin/admin
for store)
• Includes Sybase SQL 11
• US$5000, includes 3 mos. support
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Seven Different Managers
•
•
•
•
•
•
•
Catalog
Products
Store
Purchases
Inventory
Customers
Admin
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Characteristics
• Everything managed via browser, which can
get tedious
• But you already have a database behind it
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Payment Options galore
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Recommendations
• Most flexible payment options of any suite
• Better at processing orders than site creation
• Not good for large catalogs
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Microsoft SiteServer Commerce
• Still evolving
• More of a development platform than a
suite
• Closely tied to IIS, SQL Server et al.
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Shopping with MS Commerce
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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 ...
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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
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Commerce Server Specifics
• NT, fast Pentium with 256 M RAM
essential
• US$5000
• www.microsoft.com/commerce
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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
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IBM Net.Commerce
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Included
•
•
•
•
IBM’s Go Web Server
DB2 database
Shopping trolley system
Credit card verifier, eTill software
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Several ways to setup your store
•
•
•
•
Use nine-step wizard with populated catalog
Use wizard with empty catalog
Start from scratch
Import existing databases
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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
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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
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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
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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
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OpenMarket
• High end solution
• Worldnet offers hosting of OM servers
• Still needs customization!
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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)
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OpenMarket Specifics
• Various Unix
• US$250,000 and up!
• www.openmarket.com
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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
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Topic 5: Good and Bad Web
Storefront Design
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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
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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
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Let’s Learn From the “Real
World”
• Compare what works for physical stores
• Try to extend to the web
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Critical Success Factors for
Physical Storefronts
•
•
•
•
•
•
Location
Branding
Good service
Good product selection
Proper pricing and margins
Traffic
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First Problem:
• None of these translate on the ‘net!
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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
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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!
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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
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When to Send a Customer Email?
• To acknowledge the order was placed
• To say items shipped (or not ) and money
changes hands
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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!
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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
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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
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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!
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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
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AMP
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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
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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
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Inc.
First Principle of eCommerce:
• Make it easy to buy!
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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
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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
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Amazon vs Borders
• Cookies vs logins
• www.borders.com/msprotect/ncommerce/;order/list
?status=C
• Who makes it easier to buy books?
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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)
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Update your directories!
• This one is almost a year old
• www.asiapage.com/alist.html#jewellery
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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
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Second Principle of eCommerce:
• Deliver solid service!
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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)
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Dell problems
• Site is now very complex
• Print ads contain “eValue” codes
• Too many pages to get to actual PC
configuration
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Canadiantire.com
• eFlyer uses email notification along with
web forms
• Customize exactly what coupons and deals
are sent to you
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Third Principle of eCommerce:
• Individual customization is key
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BMW Motors
•
•
•
•
Example of what not to do
Use gratuitous graphics
Cheesy low-res videos
Toys, not tools
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BMW
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Compare with Subaru
• Find specific information about each car
• Can price options to your particular needs
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A better example: fishing licenses
• Simple, quick, and does the job with a
minimum of clutter
• www.permit.com
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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
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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
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Fifth Principle of eCommerce:
• Make payments easy!
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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)
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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
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Sixth Principle of eCommerce:
• Make the buyer feel secure!
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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
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