1. Telecommunications and Networks Chapter 6 Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. 6-2 Learning Objectives Understand the concept of a network Apply Metcalfe’s law in understanding the value of a network Identify major developments and trends in the industries, technologies, and business applications of telecommunications and Internet technologies Provide examples of the business value of Internet, intranet, and extranet applications

3. 6-3 Learning Objectives Identify the basic components, functions, and types of telecommunications networks used in business Explain the functions of major components of telecommunications network hardware, software, media, and services Explain the concept of client/server networking Understand the two forms of peer-to-peer networking

4. 6-4 Learning Objectives Explain the difference between digital and analog signals Identify the various transmission media and topologies used in telecommunications networks Understand the fundamentals of wireless network technologies Explain the concepts behind TCP/IP Understand the seven layers of the OSI network model

5. 6-5 Case 1: Starbucks and Others Wi-Fi hot spots –Emerged due to fast-growing popularity of laptops –Wi-Fi coffee shops supplanted cybercafés, which relied on the expensive purchase and upkeep of PCs Public Wi-Fi access is at crossroad –Recent moves toward free and advertising-based Wi-Fi service by Starbucks and others –Web advertising can offset costs or make money Like television, Wi-Fi is increasingly given away in exchange for ads

6. 6-6 Case Study Questions Do you agree with the plans by Starbucks to offer time-limited free Wi-Fi to customers? –Part of the idea is to push the Starbucks card and reap other business benefits from doing so. Do you think free Wi-Fi is enough to instill that kind of loyalty? –Based on the experiences of the other coffee houses, do you think free access was a critical factor in developing a loyal customer base?

7. 6-7 Case Study Questions Part of the reason for Starbucks’ move had to do with increased competition from chains like McDonald’s for the morning breakfast crowd. However, Starbucks and McDonald’s hardly seem to be targeting the same public –Do you think that free wireless access by such a competitor would have moved a significant portion of Starbucks customers away?

8. 6-8 Case Study Questions Some companies offer free Wi-Fi in exchange for viewing advertisements or answering questions for market research studies –Would you be willing to do so in order to get free wireless access, say, at an airport? –Would your answer change if you were using a corporate laptop versus your own, because of security concerns?

9. 6-9 Network Concepts A network is an interconnected or interrelated chain, group, or system The number of possible connections on a network is N(N–1) or N 2 –N N = number of nodes (points of connection) 10 computers on a network = 10(10–1) = 10x9 = 90 possible connections

10. 6-10 Metcalfe’s Law The more users on a network, the more useful it becomes The usefulness (utility) of a network equals the square of the number of users Once critical mass is attained, social, political, and economic systems change Until critical mass is reached, a change in technology only affects the technology Ex: The Internet is growing exponentially. We can expect more value, for less cost, virtually every time we log on

11. 6-11 Telecommunication Trends

12. 6-12 Telecommunications-Based Services

13. 6-13 Internet Networking Technologies Internet networking technologies are being used as a technology platform –Web browser suites –HTML Web page editors –Network management software –Firewalls Being applied in Internet, intranet, and extranet applications Reinforces previous move toward client/server networks based on open-systems architecture

14. 6-14 Open Systems Open systems use common standards for hardware, software, applications, and networks –Internet networking technologies are a common standard for open systems Connectivity –Open systems provide greater connectivity and network interoperability –Middleware may be needed to help diverse systems work together

15. 6-15 Middleware The “Plumbing” Programming that mediates between two separate programs Allows a particular database to access other databases without custom programming Routes data and information between back-end data sources and end user applications Essential component of any IT infrastructure

16. 6-16 Digital Network Technologies Telecommunications are being revolutionized by the switch from analog to digital –Analog: voice-oriented transmission –Digital: discrete pulse transmission Benefits –Higher transmission speeds –Moves larger amounts of information –Greater economy and much lower error rates –Transmits multiple types of communications (data, voice, video) on the same circuits

17. 6-17 Wireless Technologies Fiber-optic –Uses pulses of laser-generated light –Reduced size and installation effort –Vastly greater communication capacity –Faster transmission speeds –Freedom from electrical interference Satellite Transmission –Can move massive quantities of data, audio, and video over global networks –Especially useful in isolated areas

18. 6-18 Business Application Trends Electronic commerce Enterprise collaboration E-business processes Other applications that support operations, management, and strategic objectives Telecommunications networks now play a vital and pervasive role in Web-enabled…

19. 6-19 Internet2 – The Next Generation High performance Users connect via Abilene at 120 Gbps Will not replace current Internet Different infrastructure In limited use already May never become totally open Infinite bandwidth

20. 6-20 Value of Telecommunications Networks Overcome time barriers Overcome cost barriers Overcome structural barriers Overcome geographic barriers Strategic Capabilities

21. 6-21 The Internet Revolution The Internet is a global information superhighway Millions of smaller, private networks 10 servers in 1991 to over 46 million today Growing by 1 million servers per month No central computer system No governing body Based on common standards

22. 6-22 Internet Service Providers For a monthly fee, they provide software, user names, passwords, and Internet access Companies that specialize in providing easy access to the Internet One ISP can easily connect to another to obtain addresses of websites or user nodes ISPs themselves are connected to one another through network access points

23. 6-23 Popular Uses of the Internet Surf Connect Download Discuss Phone Calls E-Mail Publish And more… Compute Buy & Sell

24. 6-24 Business Use of the Internet

25. 6-25 Business Value of the Internet

26. 6-26 The Role of Intranets Many companies have sophisticated and widespread intranets Intranets use Internet technologies Detailed data retrieval Collaboration HTML publishing and databases Personalized customer profiles TCP/IP network protocols Web browsers and servers Links to the Internet

27. 6-27 Intranets Encryption PasswordsFirewalls Intranets are protected by… Customers, suppliers, and other business partners can access an intranet via extranet links

28. 6-28 Intranets as Information Portals

29. 6-29 Extranets Uses Internet technologies to connect the intranet of a business to the intranets of another Direct private network links, or private secure Internet links between companies Link between a company and others via the Internet, relying on encryption of sensitive data and firewall security systems Network Links Virtual Private Networks Unsecured Extranet

30. 6-30 Extranet Connectivity and Value

31. 6-31 Telecommunications Network Alternatives Telecommunications is a highly technical, rapidly changing field Most business professionals don’t need detailed technical knowledge However, understanding basic components and their characteristics is necessary Can help you make informed decisions about telecommunications alternatives

32. 6-32 Case 2: Medicine Through Videoconferencing Every 45 seconds, someone in the U.S. suffers a stroke –The first three hours are critical to survival and recovery –Not all hospitals can handle stoke patients The Neuro Critical Care Center has on-call critical-care assistance –Bidirectional videoconferencing and imaging capabilities –Mobile Tandberg systems for bedside use

33. 6-33 Case 2: Medicine Through Videoconferencing Arizona Telemedicine Program Uses technology to permit inter-disciplinary team training Statewide broadband health care communications network Links 55 healthcare organizations in 71 communities Telemedicine services provided in 60 subspecialties More than 600,000 patients have received services

34. 6-34 Case Study Questions From the perspective of a patient, how would you feel about being diagnosed by a doctor who could be hundreds or thousands of miles away? –What kind of expectations or concerns would you have about that kind of experience?

35. 6-35 Case Study Questions What other professions, aside from health care and education, could benefit from application of some of the technologies discussed in this case? –How would they derive business value from these projects?

36. 6-36 Case Study Questions The deployment of IT in the health profession is still very much in its infancy –What other uses of technology could potentially improve the quality of health care?

37. 6-37 Telecommunications Network Model A telecommunications network is any arrangement where… –A sender transmits a message to a receiver –Over a channel –Consisting of some sort of medium

38. 6-38 Types of Communications Networks Communication Networks Wide Area Peer-to-Peer Client/Server Virtual Private Local Area

39. 6-39 Wide Area Network (WAN) Covers a large geographic area

40. 6-40 Local Area Network (LAN) Connects computers within a limited physical area, such as an office, classroom, or building

41. 6-41 Virtual Private Network

42. 6-42 Client/Server Network

43. 6-43 Network Computing Networks are the central computing resource of the organization –Thin clients provide a browser-based user interface for processing applets Thin clients include –Network computers –Net PCs –Other low-cost network devices or information appliances

44. 6-44 Network Computing

45. 6-45 Peer-to-Peer Networks Central Server Architecture P2P file-sharing software connects all PCs to a central server Clicking a link connects the two PCs and automatically transfers the file to the requesting PC The server sends the requesting PC a list of links to all active peers who have the file

46. 6-46 Peer-to-Peer Networks Pure Peer-to-Peer Architecture No central directory or server File-sharing software connects one PC to another online user When you request a file, the software searches every online user, then sends you a list of active file names Clicking a link automatically transfers the file from that user’s hard drive to yours

47. 6-47 Central Server Peer-to-Peer Networks Advantages Can better protect the integrity and security of the content and users of the network Disadvantages Directory server can be slowed or overwhelmed by too many users or technical problems

48. 6-48 Peer-to-Peer Network Diagrams

49. 6-49 Digital and Analog Signals Analog An electrical current is generated that is proportional to the quantity being observed If the temperature is 83 degrees, a measuring device would generate 8.3 volts Digital The quantity being observed is expressed as a number A measurement of 83 degrees would display as the number 83

50. 6-50 Telecommunications Media Twisted-Pair Wire –Ordinary telephone wire –Copper wire is twisted into pairs Coaxial Cable –Sturdy copper or aluminum wire wrapped with spacers to insulate and protect it Fiber-Optic Cable –One or more hair-thin filaments of glass fiber wrapped in a protective jacket

51. 6-51 The Problem of “The Last Mile” Network providers use fiber optic cable as a communications backbone –Houses connected to the backbone are wired with twisted pair –Users don’t benefit from the faster, better technology

52. 6-52 Wireless Technologies Terrestrial Microwave Earthbound microwave systems transmit high-speed radio signals Follows line-of- sight path between relay systems spaced about 30 miles apart Communications Satellites Serve as relay stations Use microwave radio signals Earth stations beam signals to the satellites Not suitable for interactive, real- time processing Telephone & Pager Systems Geographic areas divided into cells Each cell has low- power transmitter or radio relay antenna Computers & other communications processors coordinate/control transmissions to/from mobile users

53. 6-53 Wireless Technologies Wireless LANS Uses wireless radio-wave technology to connect PCs within an office or building Can be high- frequency (like digital cellular), or low frequency (spread spectrum) Bluetooth Short-range wireless Connects PCs to peripheral devices Fairly low cost to implement Other Wireless Systems Cellular phones Mobile radio PDAs

54. 6-54 Wireless Technologies Telecommunications networks now play vital and pervasive roles in… Web-enabled e-business processes Electronic commerce Enterprise collaboration Other applications that support business operations, management, & strategic objectives

55. 6-55 The Wireless Protocol (WAP)

56. 6-56 Communications Processors

57. 6-57 Comparing Technologies

58. 6-58 Communications Processors Multiplexer… allows a single communications channel to carry simultaneous data transmissions from many terminals –In time division multiplexing (TDM), the multiplexer divides the time each terminal can use the high-speed into short time slots Multiplexers increase the number of transmissions possible –Does not increase the number of physical data channels

59. 6-59 Telecommunications Software May reside in PCs, servers, mainframes, and communications processors –Vital part of all telecommunications networks –Used to manage network performance –WANs often use telecommunications monitors or teleprocessing monitors –Other networks use operating system software –Middleware helps diverse networks communicate with each other

60. 6-60 Network Management Functions Traffic Management Manage network resources & traffic to avoid congestion, optimize service levels Security Provide authentication, encryption, firewall, auditing, & enforcement Network Monitoring Troubleshoot & watch over the network, alerting administrators to problems Capacity Planning Survey network resources, traffic patterns, and users’ needs Determine the best way to accommodate network needs as it grows and changes

61. 6-61 Network Topologies

62. 6-62 Network Architectures and Protocols Protocol –A standard set of rules and procedures for control of communications in a network Handshaking –The process of exchanging predetermined signals and characters –Establishes a telecommunications session between terminals and computers Network Architecture –Master plan of protocols, hardware, software, and interfaces between end users and computer systems –Goal is to promote an open, simple, flexible, and efficient telecommunications environment

63. 6-63 OSI and TCP/IP Models

64. 6-64 Voice Over IP Internet Telephony –Using an Internet connection to pass voice data using IP instead of a telephone network –Often referred to as voice over IP or VoIP –Works like a regular phone, but skips long- distance charges –Runs over standard network infrastructure –Requires a well-configured network to work smoothly –Skype is a fast-growing example

65. 6-65 Bandwidth –The frequency range of a telecommunications channel that determines the maximum transmission rate –Speed and capacity typically measured in bits per second (bps) –Sometimes call baud rate Transmission Rates –Narrow-band = low speed –Broadband = high speed

66. 6-66 Transmission Speeds

67. 6-67 Switching Alternatives Circuit Switching –Switch opens a circuit to establish a link between a sender and a receiver –It remains open until the communication session is completed Packet Switching –Breaks messages into groups called packets –Transmits packets separately

68. 6-68 Network Interoperability Ensures that anyone anywhere on one network can communicate with anyone anywhere on another network –From a telecommunications perspective, no need to speak a common language Telecommunications would be possible without –Complete accessibility –Transparency –Seamless interoperability across all networks

69. 6-69 Case 3: Secure, Self-Managed Network Metric & Multistandard Components Corp. –Telecommunications network managed by outside firm –Frequent crashes disrupted e-mail communications and order taking –Three-year contract limited options Requirements for new network –Reliability –Scalability –Security –Economy –Responsibility

70. 6-70 Case 3: Network Project Objectives Goals –Higher reliability, security, and scalability –Lower costs Strategy –Design IP network with advanced technologies that can be managed by small IT group Technology –Use virtual private network technologies –Connect remote office and users securely –Facilitate company expansion Support –Use Hi-Link technical support whenever needed

71. 6-71 Case 3: Secure, Self-Managed Network Network bandwidth, reliability, security improved Improved network management Network congestion eliminated Downtime reduced to nearly zero Significant cost savings Benefits of new, internally managed network…

72. 6-72 Case Study Questions What were the most important factors contributing to MMCC’s success with its new, secure, self-managed network? What are some of the business benefits and challenges of self-managed and externally managed networks? Which type of network management would you advise small-to-medium business firms to use?