Chapter 9: Web Hosting and E-Business Software

Dr. Samim Al Azad (SAA2)

Assistant Professor, SB&E, NSU
 E-Business News Analysis

CNBC (July 28, 2021):

The Cloud During The Pandemic (September 2020)
https://www.dhakatribune.com/feature/2020/09/08/the-cloud-during-
the-pandemic
Click the link for more detail:
Amazon coming to Bangladesh? (May 2021)
https://www.dhakatribune.com/business/2021/05/31/amazon-coming-
to-bangladesh

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 Learning Objectives

In this chapter, you will learn about:

– Finding and evaluating Web-hosting services

– Functions of e-commerce software

§ Basic functions
§ Advanced functions

– E-commerce software for

§ small and midsize businesses
§ midsize to large businesses
§ large businesses that have an existing information technology infrastructure
(dropped from the final syllabus)

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 Web Hosting Alternatives

1. Self-hosting : Running servers in-house

– Most often used by large companies

2. Third-party Web-hosting service providers

– Often used by midsize, smaller companies
– Offer Web services, electronic commerce functions

Commerce service providers (CSPs)

– Provide Internet access and Web-hosting services (not ISP)
– Help companies conduct electronic commerce
– Offer Web server management and rent application software (MSPs, ASPs)

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 Web Hosting Alternatives (cont’d.)

§ 3 Alternatives: Shared hosting, dedicated hosting, and co-location service

2.1 Shared hosting

– Server that host more than one Web site simultaneously, and operated by the service provider at its location

2.2 Dedicated hosting

– Client Web server not shared with other clients
– Service provider (CSPs) responsibilities-
§ Owns server hardware, leases hardware to client, and maintains Web server hardware, and
software, and provides Internet connection

2.3 Co-location service

– Service provider rents physical space to client, provides power supply and Internet connection
– Clients install server hardware and software; maintain server

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 Web Hosting Alternatives (cont’d.)

§ Finding hosting service providers

– Search by term “web hosting services” on search engine
– Local telephone directory, Web directories

§ Web server-hosting decisions

– Ensure hardware platforms and software combinations are-
v upgradable when site’s Web traffic increases (Upgradability)
v scalable to meet changing requirements when clients needs grow (Scalability)
v web server requirements
§ related to site electronic commerce transaction volume and Web traffic

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 Class Discussion

Amazon Web Services https://aws.amazon.com/

Vs

Google Cloud Services https://cloud.google.com/

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 Class Discussion

§ Two major providers of cloud computing services are Amazon and Google. Each of these
providers offers a different set of options and is pursuing a somewhat different strategy.
– Amazon offers cloud computing services through its Amazon Web Services (AWS)
division. AWS lets its customers use the power of AWS’s millions of servers to buy the
computing capacity they need on a short-term basis. Companies that use AWS must
provide their own applications, databases, and content; but AWS offers an instantly
available platform that can handle application hosting, Web hosting, backup and
storage, and content delivery.
– With Google Cloud, the company focuses its cloud computing services on providing
functional replacements for software that a company might need to buy and for which it
must manage usage and licensing. For example, Google offers its Gmail product to
replace a company’s e-mail server system and offers productivity applications (such as
Google Documents) to replace other vendors’ offerings of word processing, spreadsheet,
presentation, and database software.

§ Use your favorite search engine and resources in your library to learn more about
Amazon’s AWS services and Google’s cloud computing services. Compare these two
companies’ offerings. Be sure to include a discussion of the differences in the marketing
strategies adopted by Amazon and Google for their cloud computing service offerings.

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 Basic Functions of E-Commerce Software

§ E-commerce software needs determined by

– Expected enterprise size
– Projected traffic and sales
– Budget (online store costs versus ‘brick and mortar’ costs/ external or in-house host costs)

§ All e-commerce solutions must provide (functions)

i. Catalog display
ii. Shopping cart capabilities
iii. Transaction processing

§ Larger complex sites may include some software for adding features and
capabilities to basic functions (Amazon)

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 1. Catalog Display Software

§ Catalog: organizes goods and services into departments

1. Static catalog: simple list that appear on Web page

§ Small online stores use a static catalog
§ Require simple products list, item organization not important

2. Dynamic catalog: stores item information in a database

§ Large electronic commerce sites use dynamic catalog aides and tools
§ To include many features; professional looking

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FIGURE Small electronic commerce site

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 2. Shopping Cart

Early days E-commerce

§ Used forms-based shopping Cart
– Shoppers selected items by filling out online forms
– Awkward if ordering more than one or two items

§ Problems
– Need to write down product codes, unit prices, other
information before ordering
– Problem aroused when customers forgot whether
submit button clicked
– Confusing and error prone

FIGURE Using a form to enter an order

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 Shopping Cart (cont’d.)

§ Electronic shopping carts

– Keep track of items customer selected
– May view cart contents, add items, remove items
– Ordering requires a simple click that executes the purchase transaction

§ E-shopping cart use cookies to retrieve shopping cart information later

– Allows unique user identification (Shopesite)
– Web technology unable to remember anything from one session to another

§ Shopping cart software

– BIZNET Internet Services, SalesCart, WebGenie Software

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FIGURE SalesCart shopping cart software page

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 3. Transaction Processing

§ Transaction processing
– Occurs when shopper proceeds to virtual checkout counter
§ Client’s Web browser software and seller’s Web server software switch into secure
communication state (3rd party platform)

§ TP requires integration among software-

1. Electronic commerce software: volume, discount, tax, shipping cost, and totals
2. Accounting software package: records sales and inventory movements
3. Software to update tax rates

§ Shipping company (FedEx and UPS) software integrates with e-commerce

software

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 Class Discussion

§ Your friend Madona Anderson wants to set up a small Web site devoted to
gardening. She believes her many years of experience in gardening give her
an understanding of the kinds of gardening tools, fertilizers, soil-amendment
products, herbicides, pesticides, and plants that appeal to the serious
gardener. Right now, Madona does not want to sell anything, although she
might change her mind in the future. She merely wants to display pages of
plant photography, write and store short how-to papers for novice
gardeners, and provide links to other gardening tips on the Web. She
expects the site to have about 100 pages in total.

Ø She wants your advice on whether to self-host the Web site or use a service
provider to start her endeavor. Give your opinion with justification.

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 Advanced Functions of Electronic Commerce Software

§ Most large companies have Click and Mortar business model-

– electronic commerce operations, and
– substantial business activity that are not related to electronic commerce

§ This companies need to integrate electronic commerce activities into the

company’s other operations.
§ The large businesses have some basic elements-
– collection of databases
– number of software

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 Advanced Functions of Electronic Commerce Software

§ Others include:
– Middleware Software
– Enterprise application integration
– Integration with enterprise resource planning (ERP) software
– Web services
– Supply chain management (SCM) software
– Customer relationship management (CRM) software
– Content management software
– Knowledge management software

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 Databases (DB)

§ Database: Collection of information that is stored on a computer

§ Database manager (database management software)

– DBMS makes it easy for users to enter, edit, update, retrieve information in the database
– Examples: Microsoft Access, IBM DB2, Microsoft SQL Server, Oracle, MySQL

§ Large companies make their database available to users-

– Distributed information systems: storing data in many different locations
– Distributed database systems: databases within distributed IS

§ Click and Mortar business

– Better to have one database serving two sales functions (Eliminates errors)

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 Class Discussion

§ Explain why database software is an important element in an

electronic commerce site.

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 Middleware

§ Middleware Software: Connects EC software to accounting and inventory

management database.
– Example: MW extracts information about a sale from the web site’s shopping cart software and
enters it directly into the accounting software’s sales module without any human intervention.

§ Goal: Interoperability, making information systems work together

§ Development Method
– Own/ In-house development by own IT stuff
– Purchase from vendor firms (Cost : $50,000 to several million dollars)

§ Major vendors: BEA Systems, Broadvision, Digital River, IBM Tivoli Systems

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 Enterprise Application Integration

§ Application program
– A program or set of programs that performs specific function, such as creating invoices,
calculating payroll, or processing payments received from customers.

§ Enterprise Application
– A collection of existing legacy systems that connect every part of an organization.

§ Application integration (enterprise applications integration)

– Creation of links among scattered applications and interconnect organization’s business logic
§ Integration is accomplished by programs for transferring information from one application to
another

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 Integration Websites with ERP Systems

§ Enterprise resource planning (ERP) software

packages
– Business systems integrating all facets of
a business
§ Accounting, logistics, manufacturing, marketing,
planning, project management, treasury functions

§ ERP software installation costs

– Between $2 million and $25 million

§ Major ERP vendors: Oracle and SAP

FIGURE ERP system integration with EDI (b2b website)

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 Web Services (WS)

§ Web services
– Software systems supporting interoperable machine-to-machine interaction over a network
– WS allow
Ø machine to machine communication,
Ø accomplish transaction processing, and
Ø perform other business tasks

§ What Web services can do?-

– Allowing computers to use the Web to interact with each other directly (without any human
intervention)
– Offer improved customer service
– Reduced costs (less expensive than middleware software)

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 How Web Services work

• The way programs interconnect with each other is called application program interface /API
• Web APIs for interaction over the Web
§ Originally accomplished with HTML but now XML (transmit data from one integrated
application to another)
§ Use 3 specifications or rules:
– SOAP (message passing protocol),
– WSDL (characteristics of logic unit), and
– UDDI (location of the services)

§ More advanced example

– Web services purchasing software used to obtain vendor price information
– Vendor's Web services software checks buyer’s credit, contracts with freight company

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 1. E-Commerce Software for Small and Midsize Companies

A. Basic Commerce Service Providers (CSPs)

§ CSPs offer free or low-cost e-commerce software for
building e-commerce sites but kept on CSP’s server
– Software built into CSP’s site
– Cost: less than $20 per month
– Limitations
§ Selling few items (no more than 50)
§ Incurring relatively low transaction volumes (fewer than 20
transactions per day)

• Examples: ValueWeb, ProHosting.com, 1&1 Internet,

FIG Yahoo! Merchant Services page
Yahoo!, Weebly

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 Mall-Style Commerce Service Providers

B. Mall-Style Commerce Service Providers (CSPs)

§ Provide small businesses with Internet connection, Web site creation tools, little or no
banner advertising clutter
§ Also provides
– Online store design tools and storefront templates
– Web page-generation capabilities and page maintenance
– Shopping cart software capabilities
– Payment processing services

§ Charges
– Low monthly fee, one-time setup fees, or
– Percentage of (or fixed) amount for each transaction

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 Mall-Style Commerce Service Providers (cont’d.)

§ Main mall-style CSP: eBay stores

– Cost: less than $20 per month
– Each small merchant has its own store

§ Another example: sell through Amazon.com

– Individual sells certain used items on the same page Amazon.com lists the new product

§ Basic and mall-style CSPs provide data-mining capabilities

– Helps businesses find customers with common interests
– Helps discover previously unknown relationships among data
– Provides reports

§ Mall-Style CSP in Bangladesh: Daraz.com.bd

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Estimating Operating Expenses for a Small Web Business

FIGURE Approximate costs to put a small store online

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 2. Electronic Commerce Software for Midsize to Large Businesses

§ Web Site Development Tools-

– At first need to create web page, and then
– Add some software elements (S. cart) and content management software
– Need a middleware for integrating individual applications

§ Midrange software traditionally offers connectivity to database systems, store

catalog information, and existing inventory and ERP systems
§ Three midrange electronic commerce systems
• Intershop Enfinity,
• WebSphere Commerce Suite by IBM
• Commerce Server by Microsoft

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 Midrange E-commerce Software

§ Intershop Enfinity
– Search option, catalog capabilities, and electronic shopping carts
– Online credit card transaction processing, and
– Ability to connect to existing back-end business systems and databases
– Built-in storefront templates
§ IBM WebSphere Commerce Professional
– Set of software components includes catalog templates, setup wizards, advanced catalog tools
– Provides smooth connection to existing corporate systems (Inventory databases, procurement
systems)
– Useful for B2B and B2C applications
§ Microsoft Commerce Server
– Tools included for user profiling and management, transaction processing, product and service
management, target audience marketing

END
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