• Many variations of essentially the same goods
  • Charge as many people as possible the price as high as possible
• Theoretical basis: price discrimination
  • Capturing consumer surplus
• Information goods: versioning is much easier
  • Windows 7 Pro vs. Home

• Examples
  • Comprehensiveness & convenience (WSJ, Lexis-Nexis)
  • Annoyance (Winzip)
  • Speed (Comcast, Verizon)
  • Bonus Features (DVD's)
• Free Versions
  • Awareness (Half-Life)
  • Follow-up sale (McAfee, RedHat Linux)
  • Advertisement (File Sharing Sites)
  • Comp. Advantage (Internet Explorer, Adobe)

Business Application of Versioning*

• Extreme Aversion
  • Microwave experiment
    • Two versions: 45% for midrange
    • Three versions: 60% for midrange
• Vaue-Subtracted Version
  • IBM printer & PhotoDisk

• Business-to-customer (B2C)
  • Retailing of products and services directly to individual customers (Wal-Mart.com)
• Business-to-business (B2B)
  • Sale of goods and services to other businesses (Grainger.com, Alibaba.com)
• Consumer-to-consumer (C2C)
  • Individuals using the Web for private sales or exchange (eBay.com)

• Disintermediation
  • the elimination of organizations or business process layers responsible for certain intermediary steps in a value chain, reducing costs to the consumer
• Reintermediation
  • the shifting of the intermediary role in a value chain to a new source, adding additonal value to the consumer

• Electronic Data Interchange (EDI)
  • Enables the computer-to-computer exchange between two organizations of standard transactions. Currently 80% of B2B e-commerce uses this system
  • EDI is being replaced by more powerful Web-Based alternatives

• Online Marketplace
  • Peer-to-Peer Commerce
  • Auction sites: eBay, uBid, iOffer, uCrater
  • Other Auctions
    • Dutch auction & Reverse auction
    • Penny auction: swoopo.com, bidray.com

• Sequences of 1's and 0's
  • Computers recognize them as on or off signals
• Each number is a bit
  • Byte = 8 bits
  • Word = 16 bigs, 2 bytes

• 8 bits (b) = 1 Byte (B)
• 1000 B = 1 KB
• 1000 KB = 1 MB
• 1000 MB = 1 GB
• 1000 GB= 1 TB
• 1000 TB = 1 PB
• EB, ZB, YB...

• Twisted Wire @ 10 Mbps
• Coxial Cable @ 500 Mbps
• Fiber Optics and Optical Networks @ >2 Gbps
• Wireless Transmission @ 54 Mbps
• USB Cable @ 480 Mbps
• SATA Cable @ 3 Gbps

Binary => Decimal***

10101010

• Data Processing
  • Sequential vs. Parallel
  • 32-bit vs. 64-bit
• MIPS = Million Instructions per Second
  • 3.2 GHz = 3,200 MIPS
  • Application Example: CGI & CPU

• Website Capacity and Resource Allocation
  • On-Demand computing
  • Cloud Computing
• Autonomic Computing
  • Self-updating, self-debugging programs

• SETI: Search for Extra-Terrestrial Intelligence
• Grid computing uses lots of small computers all working simultaniously on different parts of analysis

Network Topologies (Star)**

(most robust and secure)

• Every Device connected to the Internet has a unique 32-bit numeric IP address
  • A Domain Name System (DNS) converts IP addresses to English-like domain names
  • The domain name is the name that corresponds to the unique 32-bit numeric IP address for each computer connectd to the internet
  • DNS servers maintain a database containing IP addresses mapped to their corresponding names
  • To access a computer on the internet, users need only specify is domain name

• Scarcity of IPv4 addresses
  • Total IPv4 addresses: 2³²=4,294,967,296
  • 4.2 billion vs 6.3 (still growing) world pop.
  • Ubiquitous computing and IP address demand
• Uneven distribution of IPv4 addresses
  • UW was allocated a Class A IP address space, which includes 65,000 addresses, many more than the university needed
  • Stanford University has 17 million addresses, vs. 2 million for India with more than 1 billion population

• IPv6 uses 16 byte addresses, i.e. 128 bit:
  • 2¹³⁸=3.2x10³⁸ addresses
• How big is it?
  • beyond our imagination
  • for every square meter of the earth's surface, it provides 6.5x10²³ addresses
  • 18 ml of water has 6.02x10²³ molecules

Major Internet Services (E-Mail)**

• In packet-switched networks, messages are first broken down into small bundles of data called packets
• These packets are sent along different communication paths and then the packets are reassembled once they reach their destinations
• Packet switching makes more efficient use of the communications capacity of a network
• The packets include information for directing the packet to the right address and for checking transmission erros along with the data

• TCP/IP is the communications protocol used by the Internet and all Internet devices
• TCP/IP provides from breaking up digital messages into packets, routing them to the proper addresses, and then reassembling them into coherent messages.
• TCP/IP uses a suite of protocols: TCP and IP

• Handles the movement of data between computers
• Establishes a connection between the computers, sequences the transfer of packets, and acknowledges the packets sent

• Responsible for the delivery of packets
• Includes the disassembling and reassembling of packets during transmission

• Medium for Wireless Communication: Electromagnetic Wave
  • Like regular wave that oscillates, with amplitude, wavelength, frequency and phase
• Virtues
  • Travels at light speed
  • needs no physical medium
  • Propagates in all directions
    • some can penetrate/circumvent obstacles
    • others need LOS
    • Delivers energy and power

• Entertainment
  • Radio: AM, FM, XM
  • Ditital TV: National and local channels
• Communication
  • Telephone: Cell phone, 4G, EDGE, Cordless phone
  • Data communication: Wi-Fi, Bluetooth, Wi-Max
  • Analog Communication: Walkie Talkie, beeper, baby monitor
• Others
  • Military: Radar, satellite, GPS
  • Medical: X-Ray machine, MRI
  • Home: Microwave, stud finder
  • Security: Full-body scanner, metal detector
  • Law Enforcement: Speed gun
  • Products using light: Remote control, laser, projector

• Referring to the Electromagnetic Wave of 30 Mhz to 3000 Mhz
  • Right next to visible light
  • On the low end of larger electromagnetic spectrum
• Virtues of the Prime Spectrum
  • Easily penetrates walls
    • Does not require LOS
  • Slow attenuation
    • Travels long distance with low power
    • Long battery life and slim design
    • Same spectrum can be reused in multiple locations
  • One of the most valuable natural resources in the information age

• Global System for Mobile Communication (GSM)
  • T-Mobile and ATT Wireless
• Code Division Multiple Access (CDMA)
  • Sprint and Verizon
• Virtually equal quality

• 1G: analog Cellular networks for voice communication
• 2G: Digital wireless networks, primarily for voice communication; limited data transmission capability
• 3G: High speed; mobile; supports video and other rich media; always-on transmission for e-mail, web browsing, instant messaging
• 3.9G: interim state before 4G
• 4G: Packet-switching; fastest; mobility support

Global Wireless Network Standards

• IEEE 802.15 (Bluetooth) for the Personal Area Network (PAN)
• IEEE 802.11 (Wi-Fi) for the Local Area Network (LAN)
• IEEE 802.16 (WiMax) for the Metropolitan Area Network (MAN)
• IEEE 802.20 (proposed) standard for the Wide Area Network (WAN)

• Can link up to 8 devices in 10-meter area: PAN
• Low power requirements
• Replacing cables: remote, headset, earphone, etc.
• Transmission speed @ 3 Mbps (million bits per second)

Major WiFi Standards (IEEE 802.11a)**

• Confidentiality
  • The improper disclosure of information
  • i.e. Tom Cruise stealing NARC info in MI
• Integrity
  • The improper modification of data
  • i.e. hacking grade system and changing grades
• Availability
  • the unauthorized denial of service to data

• Deinal of Service
• Attacking the availability aspect of the system

• Crashing
  • causing the whole system to crash so no one can access it
• Flooding
  • flooding the site or system with too many requests to make it crash