Critical Thinking Collaborative Technologies and the I

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CHAPTER 4

Networks, Collaborative Technology, and the Internet of Things

C H A P T E R O U T L I N E

Case 4.1 Opening Case: Sony Builds an IPv6 Network to Fortify Competitive Edge

4.1 Network Fundamentals

4.2 Internet Protocols (IP), APIs, and Network Capabilities

4.3 Mobile Networks

4.4 Collaborative Technologies and the Internet of Things (IoT)

Case 4.2 Business Case: Google Maps API for Business

Case 4.3 Video Case: Small Island Telecom Company Goes Global

L E A R N I N G O B J E C T I V E S

4.1 Describe the different types of networks and the basic functions of business networks.

4.2 Understand the purpose of IPs and APIs and compare wireless 3G, 4G, and 5G networks and how they support businesses.

4.3 Describe the growth in mobile data traffic and understand the components of the mobile infrastructure including near-field communication. List the business functions that near-field communication supports.

4.4 Evaluate performance improvements gained from collaborative technology and understand concept of the Internet of Things (IoT)

102 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things

Introduction Across all types and sizes of organizations, the Internet and networks have changed the way that business is conducted. Twenty years ago, computers were glorified typewriters that could not communicate with one another. If we wanted to communicate we used the telephone. Today computers constantly exchange data with each other over distance and time to provide companies with a number of significant advantages. The convergence of access technologies, cloud, 5G networks, multitasking mobile operating systems, and collaboration platforms con- tinues to change the nature of work, the way we do business, how machines interact, and other things not yet imagined. In this chapter you will learn about the different types of networks, how they affect the way that businesses communicate with customers, vendors, and other businesses, and how the largest network, the Internet, is enabling massive automatic data col- lection efforts from “things” rather than from people.

Case 4.1 Opening Case

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Sony Builds an IPv6 Network to Fortify Competitive Edge

Sony’s Rapid Business Growth In the early 2000s, Sony Corporation had been engaged in strate- gic mergers and acquisitions to strengthen itself against intensifying competition (Figure 4.1). By 2007 Sony’s enterprise network (internal network) had become too complex and was incapable of supporting communication, operations, and further business growth (Table  4.1). The enterprise network was based on IPv4. A serious limitation was that the IPv4 network could not provide real-time collaboration among business units and group companies.

Expansion efforts were taking too long because of the complicated structure of the network, and total cost of ownership (TCO) was increas- ing. Also, a number of technical limitations were blocking internal com- munications. To eliminate these limitations, Sony decided to invest in IPv6-based networks.

Network Limitations Many of the Sony Group companies had developed independently— and had independent networks. Devices connected to the independent networks were using the same IP addresses. That situation is compara- ble to users having duplicate telephone numbers—making it impossi- ble to know which phone was being called. Also, phones with the same number could not call each other.

Once these networks were integrated, the duplicate IP address caused traffic-routing conflicts. Routing conflicts, in turn, led to the fol- lowing problems:

1. Sony’s employee communication options were severely limited, which harmed productivity.

2. File sharing and real-time communication were not possible. 3. Introducing cloud services was difficult and time-consuming.

Migration to IPv6 Networks: An Investment in the Future With its virtually unlimited number of IP addresses, IPv6 would support Sony’s long-term, next-generation information and communications technology (ICT) infrastructure strategy and improve collaboration and productivity.

Migrating from IPv4 to IPv6 involved 700 sites, hundreds of thou- sands of networking devices, and hundreds of thousands of network users spread around the globe. During the transition, Sony realized that it was necessary to support both IP protocols. That is, while Sony wanted to eventually completely migrate to IPv6, the IPv6 would sup- plement and coexist with the existing enterprise IPv4 network, rather than replace it. Running both protocols on the same network at the same time was necessary because Sony’s legacy devices and apps only worked on IPv4.

Sony selected Cisco as a key partner in the migration and inte- gration of IPv4 and IPv6 traffic because of the maturity of its IPv6

Introduction 103

technology. The integrated network has been used by Sony as infra- structure for product development. Sony also upgraded its Cisco net- work switches at the corporate data center, campuses, and remote offices to handle concurrent IPv4 and IPv6 traffic.

Business Results The use of IPv6 eliminated the issue of conflicting IP addresses, ena- bling Sony employees in all divisions to take advantage of the produc- tivity benefits of real-time collaboration applications. Other business improvements are as follows:

• Flexibility to launch new businesses quickly. • Reduced TCO of enterprise network. • Network without communications constraints, supporting “One

Sony” through information systems:

Decreased lead time of connecting a new group to the enterprise network.

Automated network processes by ridding of manually config- ured NAT devices.

However, Sony’s networks are far from perfect, especially when it comes to its PlayStation Network Service. Unfortunately for gamers, the PSN consistently crashes without warning and for relatively long periods of time. The first crash of 2016 on January 4th caused the ser- vice to be down for about 8 hours for all users. During that time, many users could not play their games, use streaming services, or access the online store.

Questions 1. Explain how Sony’s IPv4 enterprise network was restricting the

productivity of its workers.

Sony Corporation

Global Reach

Network Solution

Sony aims to accelerate global collaboration and business across business units to achieve goal of “One Sony.”

Cisco Enterprise IPv6 network integrated with IPv4 network.

Consumer electronics equipment and services; music, pictures, computer entertainment.

More versatile network Network without communications constraints, supporting “One Sony” through information systems.

Brand

Business Results

FIGURE 4.1 Sony Corporation overview.

TA B L E 4 . 1 Opening Case Overview

Company Sony Corporation, Sony.com

Location Headquartered in Tokyo, Japan. Over 700 total network sites worldwide.

Industries One of the largest consumer electronics and entertainment companies in the world, including audio/video equipment, semiconductors, computers, and video games. Also engaged in production and distribution of recorded music, motion picture, and video.

Business challenges

• Network expansion required too much time due to complexity of enterprise network.

• Networking TCO (total cost of ownership) was continually increasing. • Numerous constraints on networks obstructing communication between com-

panies in Sony Group.

Network technology

• Integrated its IPv4 networks with new IPv6 solutions from Cisco. The integrated IPv4/IPv6 network has been used by Sony as infrastructure for the development of new products and enterprise-wide collaboration.

• Sony also upgraded its Cisco switches at the corporate data center, campuses, and remote offices to handle concurrent IPv4 and IPv6 traffic.

104 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things

4.1 Network Fundamentals Today’s managers need to understand the technical side of computer networks to make intel- ligent investment decisions that impact operations and competitive position. Enterprises run on networks—wired and mobile—and depend upon their ability to interface with other net- works and applications. Computer networks are changing significantly in their capacity and capabilities.

Network Types Computers on a network are called nodes. The connection between computers can be done via cabling, most commonly through Ethernet, or wirelessly through radio waves. Connected computers share resources, such as the Internet, printers, file servers, and other devices. The multipurpose connections enabled by a network allow a single computer to do more than if it were not connected to other devices. The most well-known network is the Internet.

Computer networks are typically categorized by their scope. Common types of networks are shown in Table 4.2. Of these, LAN and WAN are the two primary and best-known categories of networks.

Computer networks are a set of computers connected together for the purpose sharing resources.

TA B L E 4 . 2 Types of Networks

Acronym Type Characteristics Example LAN Local Area Network Connects network devices over a relatively short distance

Owned, controlled, and managed by one individual or organization

Office building School Home

WAN Wide Area Network Spans a large physical distance Geographically dispersed collection of LANs Owned and managed by multiple entities

Internet Large company

WLAN Wireless Local Area Network

LAN based on Wi-Fi wireless network technology Internet Large company

MAN Metropolitan Area Network

Spans a physical area larger than a LAN but smaller than a WAN Owned and operated by a single entity, e.g., government agency, large company

City Network of suburban fire stations

SAN Storage Area Network Server Area Network

Connects servers to data storage devices High-performance database

CAN Campus Area Network Cluster Area Network

Spans multiple LANs but smaller than a MAN University Local business campus

PAN Personal Area Network Spans a small physical space, typically 35 feet or less Connects personal IT devices of a single individual

Laptop, smartphone, and portable printer connected together

2. What problems did duplicate IP addresses cause at Sony? Give an analogy.

3. Why did Sony need to run both protocols on its network instead of replacing IPv4 with IPv6?

4. Describe the strategic benefit of Sony’s IPv6 implementation.

5. Do research to determine the accuracy of this prediction: “Today, almost everything on the Internet is reachable over IPv4. In a few years, both IPv4 and IPv6 will be required for universal access.”

Sources: Cisco (2016) and Neal (2016).

Network Fundamentals 105

Intranets, Extranets, and Virtual Private Networks Intranets are used within a company for data access, sharing, and collaboration. They are por- tals or gateways that provide easy and inexpensive browsing and search capabilities. Colleges and universities rely on intranets to provide services to students and faculty. Using screen shar- ing and other groupware tools, intranets can support team work.

An extranet is a private, company-owned network that can be logged into remotely via the Internet. Typical users are suppliers, vendors, partners, or customers. Basically, an extranet is a network that connects two or more companies so they can securely share information. Since authorized users remotely access content from a central server, extranets can drastically reduce storage space on individual hard drives.

A major concern is the security of the transmissions that could be intercepted or compro- mised. One solution is to use virtual private networks (VPNs), which encrypt the packets before they are transferred over the network. VPNs consist of encryption software and hardware that encrypt, send, and decrypt transmissions, as shown in Figure 4.2. In effect, instead of using a leased line to create a dedicated, physical connection, a company can invest in VPN technology to create virtual connections routed through the Internet from the company’s private net- work to the remote site or employee. Extranets can be expensive to implement and maintain because of hardware, software, and employee training costs if hosted internally rather than by an application service provider (ASP).

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FIGURE 4.2 Virtual private networks (VPNs) create encrypted connections to company networks.

Network Terminology To be able to evaluate the different types of networks and the factors that determine their func- tionality, you need to be familiar with the following network terminology:

• Modem It is a device designed to adapt/modify the information signals in a way that can be transported by the media. The word modem is composed of two terms: Modulator and Demodulator, the modulator adapts the information signal in order to be transported by the media and the demodulator does the inverse process at reception. Digital modems are called “CSU/DSU” (Channel Service Unit/Data Service Units).

• Modulation and coding These are the specific techniques used by the modem to adapt the signal to the media. There are several ways to do this process like Amplitude Modulation, Phase modulation, Frequency Modulation. In a few words modulation/ coding is to decide how the “1s” and “0s” are represented in terms of voltages and/or frequencies.

106 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things

• Signal It is the information we want to send, every signal is composed of a combination of 1s and 0s. Every signal has a frequency spectrum.

• Signal frequency spectrum These are all the frequency components of a signal. The more 1s and 0s are transmitted per unit of time (i.e., per second) the highest will be the frequency components of a signal. The bandwidth of the signal is measured in hertz or number of variations per second. The more 1s and 0s are transmitted within one second the higher will be the frequency spectrum or signal bandwidth.

• Media bandwidth Every media (i.e., Copper, Coaxial, and Fiber Optics) has a limitation in the range of frequency signals that can move through it without significant attenua- tion. The bandwidth of the media varies by type, is limited, and typically can’t accept the entire signals frequency spectrum (Figure  4.3). The range of frequencies that can move through the media without significant attenuation is called bandwidth and it is also mea- sured in hertz.

The mission of a modem/DSU-CSU is to adapt the information signal so that it can move through the media without significant attenuation. Typically “significant attenua- tion” means that the signal has not lost more than half of its original power.

Generally speaking, the media bandwidth (in hertz) can be defined as the range of frequencies (i.e., fmax − fmin) at which the signal has not lost more than 50% of its power. Upon coding-modulation techniques, it is possible to pack many binary symbols in one hertz (many binary symbols per second), for example, it is possible to pack 5 bits in each hertz of the signal. So if the bandwidth is 200,000 hertz then up to 1,000,000 bits/s (2000,000 hertz *5 bits/hertz) can be transmitted.

A different modulation/coding technique (i.e., for the same signal and the same media) might pack 10 bits per every hertz of bandwidth and up to 2 Mbits/s (200,000 hertz *10 bits/hertz = 2 Mbits/s). The media bandwidth provided should be capable of transport- ing this coded-modulated signal without significant attenuation.

• Capacity or digital bandwidth It is the maximum amount of bits/second that can be transmitted over the media. Upon ideal conditions, it is possible to reach the maximum capacity in a connection although this seldom happens (see Figure 4.4).

Functions Supported by Business Networks Figure 4.5 describes the basic business functions supported business networks: communica- tion, mobility, collaboration, relationships, and search. These functions depend on network switches and routers—devices that transmit data packets from their source to their destina- tion based on IP addresses. A switch acts as a controller, enabling networked devices to talk to each other efficiently. For example, switches connect computers, printers, and servers within an office building. Switches create a network. Routers connect networks. A router links computers

1 Gbps Ethernet

100 Mbps Ethernet Gigabit Passive Optical Network (GPON)

Ethernet Passive Optical Network (EPON) CableDSL

ISDN

FIGURE 4.3 Bandwidth variation by media type.

Network Fundamentals 107

to the Internet, so users can share the connection. Routers act like a dispatcher, choosing the best paths for packets to travel.

Investments in network infrastructure, including data networks, IP addresses, routers, and switches are business decisions because of their impact on productivity, security, user experi- ences, and customer service.

Quality of Service An important management decision is the network’s quality of service (QoS), especially for delay-sensitive data such as real-time voice and high-quality video. The higher the required QoS, the more expensive the technologies needed to manage organizational networks. Bandwidth-intensive apps are important to business processes, but they also strain network capabilities and resources. Regardless of the type of traffic, networks must provide secure, pre- dictable, measurable, and sometimes guaranteed services for certain types of traffic. For exam- ple, QoS technologies can be applied to create two tiers of traffic:

• Prioritize traffic Data and apps that are time-delay-sensitive or latency-sensitive apps, such as voice and video, are given priority on the network.

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Current Bandwidth Usage – Last 5 Minutes

Enterprise Current Policy Threshold

Bandwidth Monitor

Current Policy Threshold(06:51:55): 300

FIGURE 4.4 Bandwidth capacity monitor.

Communication

Mobility Provides secure, trusted, and reliable access from any mobile device anywhere at satisfactory download and upload speeds.

Relationships Manages interaction with customers, supply chain partners, shareholders, employees, regulatory agencies, and so on.

Search Able to locate data, contracts, documents, spreadsheets, and other knowledge within an organization easily and efficiently.

Collaboration Supports teamwork that may be synchronous or asynchronous; brainstorming; and knowledge and document sharing.

Provides sufficient capacity for human and machine-generated transmissions. Delays are frustrating, such as when large video files pause during download waiting for the packets to arrive. Buffering means the network cannot handle the speed at which the video is being delivered and therefore stops to collect packets.

FIGURE 4.5 Basic functions of business networks.

108 C H A P T E R 4 Networks, Collaborative Technology, and the Internet of Things

• Throttle traffic In order to give latency-sensitive apps priority, other types of traffic need to be held back (throttled).

The ability to prioritize and throttle network traffic is referred to as traffic shaping and forms the core of the hotly debated Net neutrality issue, which is discussed in IT at Work 4.1.

Net neutrality is a principle that Internet service providers (ISPs) and their regulators treat all Internet traffic the same way. It’s essentially equal opportunity for Internet speeds and access to website—no unfair fast or slow lanes and no blocking of anything that’s legal on your phone, computer, or table.

IT at Work 4.1

Net Neutrality Debate Intensifies In 2016, the battle over the complicated issue of net neutrality heated up due to AT&T’s purchase of Time-Warner. However, with AT&T’s takeover of Time-Warner, which owns HBO and DC Comics, it is almost certain that AT&T will give priority to customers who try to access its newfound property (Pachal, 2016). On the opposing side of that issue is traffic shaping. Traffic shaping creates a two-tier system for specific purposes such as:

1. Time-sensitive data are given priority over traffic that can be delayed briefly with little-to-no adverse effect. Companies like Comcast and AT&T argue that Net neutrality rules hurt con- sumers. Certain applications are more sensitive to delays than others, such as streaming video and Internet phone services. Managing data transfer makes it possible to assure a certain level of performance or QoS.

2. In a corporate environment, business-related traffic may be given priority over other traffic, in effect, by paying a premium price for that service. Proponents of traffic shaping argue that ISPs should be able to charge more to customers who want to pay a premium for priority service.

Specifically, traffic is shaped by delaying the flow of less important network traffic, such as bulk data transfers, P2P file-sharing pro- grams, and BitTorrent traffic.

Traffic shaping is hotly debated by those in favor of Net neu- trality. They want a one-tier system in which all Internet data packets are treated the same, regardless of their content, destina- tion, or source. In contrast, those who favor the two-tiered system argue that there have always been different levels of Internet ser- vice and that a two-tiered system would enable more freedom of choice and promote Internet-based commerce.

Federal Communications Commission’s 2010 Decision On December 21, 2010, the Federal Communications Commission (FCC) approved a compromise that created two classes of Inter- net access: one for fixed-line providers and the other for the wireless Net. In effect, the new rules are Net semi-neutrality. The FCC banned any outright blocking of and “unreasonable discrimination” against websites or applications by fixed-line broadband providers. But the rules do not explicitly forbid “paid prioritization,” which would allow a company to pay an ISP for faster data transmission. Net neutrality supporters include major internet companies who provide the content you read and watch online, including AOL, Facebook, Netflix, Twitter, and Vimeo who don’t want to be discriminated against by network owners. Those

against it include AT&T, Comcast Time Warner Cable, Verizon, and other internet service providers who own the networks and fear price controls.

Net Neutrality Overturned in 2014 In January 2014, an appeals court struck down the FCC’s 2010 decision. The court allowed ISPs to create a two-tiered Internet, but promised close supervision to avoid anticompetitive practices, and banned “unreasonable” discrimination against providers.

On April 24, 2014 FCC Chairman Tom Wheeler reported that his agency would propose new rules to comply with the court’s decision. These new rules were approved by the FCC in 2015. Wheeler stated that these rules “would establish that behavior harmful to consumers or competition by limiting the openness of the Internet will not be permitted” (Wheeler,  2014). But Wheeler’s proposal would allow network owners to charge extra fees to content providers. This decision has angered consumer advocates and Net neutrality advocates who view Wheeler with suspicion because of his past work as a lobbyist for the cable industry and wireless phone companies.

Rolling Back Net Neutrality Protections in 2017 The process to overhaul how the Internet is regulated is now offi- cially underway. On May 18, 2017 the FCC voted 2-1 to move forward with a proposal to roll back net neutrality protections. The contro- versial vote is the first step in a lengthy process to overturn the rules put into place during the Obama administration. Longtime net neu- trality advocates predict there will be negative consequences for businesses and consumers if net neutrality is overturned. Michael Cheah, general counsel at Vimeo, summed it up by saying that net neutrality is about “allowing consumers to pick the winners and losers and not [having] the cable companies make those decisions for them” (Fiegerman, 2017).

IT at Work Questions 1. What is Net neutrality? 2. What tiers are created by traffic shaping? 3. Why did the battle over Net neutrality intensify in 2014? 4. Did the FCC’s 2015 net neutrality rules favor either side of the

debate? Explain. 5. What consequences may occur when the 2015 net neutrality

rules are overturned?

Sources: Compiled from Federal Communications Commission (fcc.gov, 2017), Fiegerman (2017), Pachal (2016), Wheeler (2014), and various blog posts.

Internet Protocols (IP), APIs, and Network Capabilities 109

Questions

1. Name the different types of networks. 2. What is meant by “bandwidth”? 3. What is the difference between an intranet and an extranet? 4. How does a virtual private network (VPN) provide security? 5. What is the purpose of a modem? 6. Describe the basic functions of business networks. 7. How do investments in network infrastructure impact an organization? 8. Name the two tiers of traffic to which quality of service is applied.

4.2 Internet Protocols (IP), APIs, and Network Capabilities The basic technology that makes global communication possible is a network protocol com- monly known as an Internet Protocol (IP). Ea

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