COLUMBUS GROUP EXPLORE - APRIL 17, 1996
Hello, and welcome to the first edition of Explore - Columbus Group
Communications client newsletter.
We have developed this publication to provide you with the latest news on
World-Wide Web developments. We realize that a large email of this type
may be difficult to read, so we have set it up in a manner that we hope
will be easy to scroll through. In addition, you will be given password
access to a website version of Explore, which will be available on our
new site at http://columbus-group.com by the end of this week.
This newsletter has been developed specifically for you, and we welcome
any suggestions, questions or comments that you may have. To reach us,
please reply to this email (explore@columbus-group.com) or call us at
604.739.2982.
TABLE OF CONTENTS
1.0 FEATURE ARTICLE
--Shockwave; The Next Logical Step--
2.0 INSIDE SCOOP
--The Move To Intranets--
3.0 MAINTENANCE ROOM
--Balancing a Web Budget--
(Excerpts taken from Interactive Age - March 4th, 1996)
4.0 TECH UPDATE
--Java Alert--
5.0 SECURITY DESK
--Cash Seeks a Role in Digital Domain--
(Excerpts from Interactive Week February 26, 1996)
6.0 WWW5
--The latest statistics on Internet Users--
7.0 LAUGHLINE
--Did I say that?--
8.0 THE HOTLIST
--Columbus Group's top five sites of the month--
9.0 FAQ's
-What's the difference between a website hit and a website access?
-What type of browser are people using to access my site?
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1.0 FEATURE ARTICLE
--Shockwave; The Next Logical Step--
A general trend toward real time interactivity on the web persists. Most
new
technologies are focusing on one of two things; security and/or real time
information synthesis. Live stock feeds, online television broadcasts, radio
broadcasts, live discussion forums and other cutting edge technologies are
bringing the Internet closer to being an instant medium; a medium where
users
can interact and view multi-media environments. A new software plug-in from
Macromedia released earlier this year has brought full motion multi-media
one
step closer to being a reality on the Web. It's called Shockwave, and you
can
now find it on thousands of corporate and entertainment websites all over
the
Internet.
WHAT IS SHOCKWAVE AND HOW DOES IT BRING MULTIMEDIA TO THE WEB
Simply stated, Shockwave combines interactive graphics, sound and animation
in a
compressed format. Previous to Shockwave, users could only view static webpages
or slow animation sequences through Netscape's server push technology. But
now,
users can view real time animation and even play interactive games online.
Users
can expect animation and low-level games for the first few months (i.e.
spinning
logos, flashing pictures ) with files ranging in size from 75K to 300K.
Interactivity is the key benefit of Shockwave, with users being able to
select
certain objects/items and have them perform certain tasks (such as when
you move
your cursor over a face, it will smile). Shockwave is the graphic design
alternative and complement to Java, Sun Microsystems new programming language.
While Shockwave is easier to program, it does not offer the complete
capabilities that Java does, specifically for complicated network system
software. It is however, a less expensive yet effective way to communicate
a
message to a techno-savvy consumer.
SHOCKWAVE: RATE OF ADOPTION
Since Shockwave is only available as a plug-in for Netscape 2.0 users, the
rate
of adoption is highly dependent on Netscapes 2.0 level of adoption. At present,
Netscape 2.0 has captured approximately 40% of the market, with approximately
60% of these users having downloaded the Shockwave plug-in. Roughly calculated,
this means that 24% of your users would be able to see a Shockwave demonstration
on your website. We expect Netscape 2.0s share of the overall browser market
to increase to 50-60% within the next 2 months, with 80% of these users
having
downloaded Shockwave. While not presently available for Microsoft Explorer,
a
version will soon be made available. Explorer has approximately 6% of the
browser market share with a probable 10% share within 2-3 months. Given
these
estimations, over 50% of users will be able to view Shockwave demonstrations
within 2-3 months. What does all this mean? By our calculations, it means
that
you should consider including a Shockwave clip within the next 3-6 months.
SHOCKWAVE: TECHNICAL BACKGROUND
Shockwave itself is a software add-on for Macromedia Director that enables
multi-media authoring on the Internet.
Shockwave files are slightly larger in size than the average JPEG graphic
(usually hovering in size around 150K).
Only users with Netscape 2.0 or higher can view Shockwave files.
Future versions will support streaming and caching of movies that will
dramatically improve the real time interactive performance.
Shockwave consists of a post-processor, called AfterBurner, that compresses
Director files and optimizes the content by media type for quick web downloading
DOWNLOADING SHOCKWAVE:
If you haven't already downloaded Netscape 2.0 or above, you will need to
do
this first. Cut and paste the following address to download the latest version
of Netscape:
http://home.netscape.com/comprod/mirror/client_download.html
Now that you have Netscape 2.0, you can download the Shockwave plug-in at:
http://www.macromedia.com/Tools/Shockwave/Plugin/plugin.cgi
After you have downloaded Shockwave, place the software into your Plug-in
file
folder in your Netscape folder and restart Netscape. If you need more detail,
the Shockwave site will provide you with step by step instructions. Now
that you
have Shcokwave, get shocked at few of the following sites:
http://www2.apple.com/sw/
http://www.giantstep.com/united_bin/home_bin/home.cgi?33,36
http://www.nissanmotors.com/pathfinder/gear.cgi
http://www.intel.com/intel/museum/25anniv/shock/hof/hof_main.htm
http://www.accuwx.com/www/vol3/shockwave/5day.htm
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2.0 INSIDE SCOOP
--The Move To Intranets--
The Inside Scoop column is dedicated solely to discussions on the topic
of
Intranets. Intranets are secure internal corporate websites which are developed
to aid enterprise communications and data transfers. Many corporations
are
beginning to recognize the power of Intranet systems, and are installing
them to
operate within existing corporate LANs and WANs. The first article in this
series
series focuses on the seven main benefits of an Intranet Communications
System.
After experiencing the Internet for awhile, people quickly realize the power
of
accessing information in a uniform format. Your mouse clicks retrieve text
files, pictures, and even send queries to remote databases. You don't care
about what format the data was in or where you had to go to get it. Your
web
browser handles all the details. Now imagine offering your fellow employees
the
same intuitive, transparent access to your company's internal data. This
is
what an Intranet can provide.
There are seven key benefits to providing enterprise data over an Intranet:
UNIFORMITY No matter what platform is used as the client, when
viewed
through a Web browser, the data appears the same.
LOW-COST With a common set of application programming interfaces
and off the shelf server software, the cost of application
development and deployment is greatly reduced.
FAMILIARITY The Web browser provides a single familiar interface
from
which users can run all their applications.
CUSTOMIZATION Tying marketing messages to databases allows for narrow
casting down to an audience of one. Intelligent agents
in the form of database-event notifications and alarms
help
fine-tune the automated message response.
CHEAP CONNECTIONS: By using the Internet to replace corporate toll-free
"800"
numbers, the cost of the call is shifted from the company
to the customer.
ACCESSIBILITY Users can conduct sophisticated searches using form-based
criteria, without knowing Structured Query Language
or any
of the technical steps necessary to implement the query.
EFFICIENCY Database management systems are the most efficient way
for
companies to manage multiple Web pages.
Intranets are an attractive way to deliver information to employees. All
that
is needed is a workstation and connection to a TCP/IP network, standard
fare for
most offices these days. Still, many questions jump to the forefront when
justifying the expenditure. Can an Intranet yield real business benefits?
What
software should developers use to productively design internal web pages?
How
do you link an Intranet to your existing data sources? What type of management
is going to be required? Over the next few articles, we will address each
of
these questions with examples.
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3.0 MAINTENANCE ROOM
--Balancing a Web Budget--
(Excerpts from Interactive Age - March 4th, 1996)
So your organization has set up a web site that, you believe, is one of
the best
in your industry, and you have been chosen to draft the budget for the next
year
to keep it at the top. Last year's budget was probably surpassed, if not
doubled. How much should you allocate this year? How much should it cost?
This answer will vary from company to company depending on the website's
goals
and their strategy. Josh Bernoff, senior analyst at Forrester Research
Inc., in
Cambridge Mass. found that depending on corporate goals, the cost to launch
and
operate a website will range between $681,000 and $4.2 million in the next
year.
Mr. Bernoff identifies three distinct categories of websites corporations,
each
with their own specific goals and maintenance budgets. These are promotional,
content and transaction sites.
Promotional sites cost the least to launch and operate, at $304,000 in the
first year, with expenditures rising to $681,000 in year 2. Promotional
sites typically promote a brand, rather than serve a corporate homepage.
The use of outside advertising agencies to develop this type of site will
usually keep the staff costs at a minimum.
Content sites, designed to build audiences via news, weather, information
and
games are typically launched, staffed and outfitted for about 1.3 million
per
year, with costs rising to 1.8 million by the second year. These sites are
aimed at collecting revenues from advertising. Staff costs are typically
much
higher for these types of sites, and in many cases payroll will drive the
budget.
Transactional sites are out to capture a share of the $200 million and growing
electronic commerce category and require larger staffs, as well as hardware
and
information systems. These sites cost 3.4 million to set up and operate
in the
first
year, increasing to about 4.2 million by the end of the second.
Many corporations are beginning to see that benefits to their bottom line
can be
acheived by outsourcing their website maintenance. "Outsourcing gives
us
flexibility and access to resources we wouldn't be able to assemble quickly
and
efficiently on our own", said Tom Hicks, vice-president at Discovery
Channel
Online. (http://www.discovery.com) Outsourcing can dramatically reduce a
budget
for operating a website with respect to staff costs alone. **
In addition to estimating costs based on the type of site required, Bernoff
suggests that a firm set aside an additional 20% on top of the budget.
This
will enable the company to take advantage of a new opportunity or technology
three or six months down the road, without taking money from another budget.
Given the dynamic nature of website technology, its a safe bet that setting
up
an annual budget is going to be a tough chore for many years to come. In
the
short term, its probably best to set a little extra aside just in case,
that
way, your company will be in the best position to capitalize on any new
opportunities when they arise.
**[Full Website Maintenance programs offered by Columbus Group typically
run
from $500 to $10,000 per month depending on the level of service required.]
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4.0 TECH UPDATE
--Java Alert--
The technology section of our Explore newsletter will highlight the new
and
different products, services, and applications of ground-breaking technology
that are being developed in the marketplace. In this first article, the
intent
is to provide an introduction to one of the hottest applications on the
web, Sun
Microsystem's Java. This article will provide a brief background on the
origin,
purpose, and the different applications of this increasingly popular
application.
WHAT IS JAVA?
Sun Microsystems, the developers of Java describe it as a simple, object-
oriented, distributed, interpreted, robust, secure, architecture neutral,
portable, high-performance, multithreaded, and dynamic language.
Everybody got that?
Simply stated - Java is a programming language. It was originally designed
by
Sun Microsystems as a variant on the C++ langurage to allow the secure execution
of programming code in a network environment. In order to operate within
a
network, Java had to be archeticture neutral. This means that all platforms,
including Windows 95, MacOS, IBM OS/2, Sun Sparc Solaris, etc. had to be
able to
understand and execute the Java code. It is this client-server design that
has
made Java so suitable for integration onto the World-Wide Web, as surfers
accessing from a variety of platforms can execute Java programs.
HOW DOES JAVA WORK ON THE WEB?
When a Java program is written, it is coded into a data package called an
applet. The power of the applet lies in its ability to be embedded onto
webpages, in much the same way that a graphic (.gif) image is stored. When
a
visitor using a Java compatible browser views the page, the applet's code
is
transfered to their system and executed by the browser. In this way, surfers
using Sun HotJava, Netscape 2.0 for Windows and Netscape 2.01 for the Macintosh
can access advanced website applications developed in Java.
WHAT CAN JAVA DO?
In many ways, the possibilities for Java are limitless. Complex calulations,
sound and animations can all be programmed through applets. One popular
application of Java applets allows users to have stock prices continuously
updated on their screen. The client-server nature of Java enables complex
programs to be offloaded to the client's PC, significantly reducing page
rinse-in times and the load on the Web Server.
To see for yourself what Java can do visit Gamelan Java site resource at
http://www.gamelan.com/ From there you can access a multitude of Java-
enhanced pages.
WHAT DO I NEED TO SEE JAVA?
As mentioned earlier, in order to view Java a user must have a Java compatible
browser. Currently, Sun's HotJava and Netscape 2.0 for Windows and 2.01
for
Macintosh are Java capable. At this time it is estimated that about 38%
of all
surfers on the Internet are using one of these browsers. So a Java applet
installed within a site can be executed by approximately one-third of all
visitors to it.
At this time the above mentioned browsers are available to be downloaded
for
free at the following locations:
http://www.javasoft.com/hotjava.html
(SPARK/Solaris and MS Windows 95)
http://www.netscape.com/comprod/mirror/client_download.html
(MS Windows 95 and Macintosh)
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5.0 SECURITY DESK
--Cash Seeks a Role in Digital Domain--
(Excerpts from Interactive Week February 26, 1996)
The security of online transactions is a major issue on the Internet at
this
time. A number of security protocols have been written which encrypt data
over
the web so credit card numbers can be safely transmitted. Additionally,
electronic cash systems sometimes known as e-cash or cybercash have been
developed to enable web purchases without requiring the submission of a
credit
card number. This article will focus on one of the players in the development
of electronic cash for the web, and outline consumer perceptions of the
e-cash
concept.
So far, the use of strings of numbers as money on computer networks hasn1t
taken
off, indicating digital cash may have a more limited role in paying for
goods
than previously thought.
"There really isn't a major market for digital cash on the Web,"
says Forrester
Research analyst David Weisman. "People are used to buying things
over the
phone or online with a credit card. It's common behaviour."
Even those who believe there may be a role for digital cash in the future
say
its acceptance and usage will take much longer than originally expected.
"Digital cash will be a part of the overall fabric of electronic commerce,"
says
Shikhar Ghosh, co-founder and CEO of Open Market Inc.. "But at this
point there
is a complete lack of knowledge and application on the part of the mass
market."
That has led to continued resistance on the parts of many banks. "Banks
have
been presented with so many different, competing strategies for electronic
payment and digital cash, they're not sure what they have to do,"
says Marcus
Ranum, chief scientist at V-One Corp., a supplier of firewalls. "As
long as
the market stays fragmented, people will stick with credit cards when conducting
commerce over the Internet."
The big plus of digital cash is anonymity, as the sale of a good can't be
tracked to its buyer. But the more practical use of digital cash may be
in
paying for low-cost items. These are transactions that are too tiny, usually
under ten dollars to justify the use of a credit card or check.
One company, CyberCash Inc. is focusing on this low-cost transaction market
and
has developed a system which allows computer game players to download
environments, characters and props from the world-wide web on a pay-as-you-play
basis for denominations as small as 25 cents.
"The goal is to create a payment mechanism for things you cannot do
today," says
CyberCash Vice President Magdalena Yesil. "We want to capture the
area of
spontaneous purchases that are not served by subscription services."
The company is working to equip its CyberCash Wallet with an electronic
coin
purse. The Wallet is a free software program installed on a consumer's
personal
computer, allowing transactions to move between servers at a bank and a
merchant. When a consumer selects items for purchase and completes a merchant
order form, the merchant server presents an invoice to the consumer and
requests
payment. When a consumer clicks on the pay button, the CyberCash software
on
the merchant server sends a special message that activates a series of encrypted
transmissions that travel on the Internet and over conventional credit and
banking networks connected directly to the CyberCash Bank payment servers.
CyberCash have focused their energies on developing "notational"
digital cash,
where the money always resides within the banking system. Another company,
DigiCash Inc. has focused on the development of "token" digital
cash, purchased
with real dollars and then actually downloaded to a user's hard drive.
The Mark
Twain Bank in St. Louis currently buys and sells DigiCash's e-cash product
(levying a sizeable transaction fee). DigiCash has also signed an agreement
with Swedish bank Sweden Post. "For low-value transactions you cannot
beat the
versatility, privacy and finality of cash," says Dan Eldridge, DigiCash1s
vice
president.
As more banks begin to adopt e-cash products and a movement towards a
standardised platform is made, the popularity of cybercash on the Internet
may
increase. It is highly probable though, that e-cash will not develop past
a
niche product, used primarily for transactions of small denomination. The
demand for e-cash will likely decrease, as people become more confident
in the
high security that is provided for credit card submissions through the
deployment of secure transfer protocols such as Secure Hypertext Transfer
Protocol (S-HTTP) from Verifone, Secured Sockets Layer (SSL) from Netscape,
and
Private Communications Technology (PCT) and Secure Transaction Technology
(STT)
from Microsoft.
The following links provide Additional information on this topic:
http://www.digicash.com/
http://www.cybercash.com/
http://www.eit.com/creations/s-http/
http://www.netscape.com/info/SSL.html
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6.0 WWW5
We know that accurate and timely statistics on World-Wide Web users are
difficult to come by. So every month, we will track them down for you,
and
present the details in this column. For this month1s edition, we have consulted
a couple of excellent surveys conducted at the end of last year.
The GVU-Hermes Survey is a voluntary survey completed by Web users, now
in its
fourth phase. Conducted from October 10 through November 10, 1995, it received
over 23,000 responses.
The O'Reilly & Associates Inc. survey, collected May-August 1995 provided
the
first extensive study based on random telephone surveys on US households
and in
depth interviews. This survey method provides more statistically accurate
information than online surveys where answers are voluntary.
While they each produce slightly different numbers to support their findings,
both reach the same conclusions about the Internet. User demographics are
becoming less skewed towards wealthy, educated males, and more representative
of
the general population. Messages delivered over the Internet can now access
a
broader range of target markets.
Summary of Findings:
-The number of Internet users in the US will be 15.7 million by October
1996.
-The gender of users is now about 33% female up 10% over the previous year.
-Average age of users has decreased by several years to about 31.
-Average income of users is still high (in the $60,000 US range) but dropping.
-The majority of Web users still tend to access the Internet through their
work,
or educational institution. The number who access from home through Internet
Service Providers (AOL, CompuServe, Internet Direct, etc.) is increasing
and is
where the largest growth in new users will occur.
-Commercial transactions are still viewed with some skepticism, with security
of
transaction information (particularly credit card numbers) being a primary
concern.
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7.0 LAUGHLINE
Have you ever said something and immediately hoped that nobody was paying
attention. Unfortunately for these two - somebody was.
"There is no reason anyone would want a computer in their home."
Ken Olsen, president, chairman and founder of Digital Equipment
Corp.,
1977
"I think there is a world market for maybe five computers."
Thomas Watson, chairman of IBM, 1943
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8.0 THE HOTLIST
Here's the lowdown on our top 5 sites of the month.
1. http://www.pepsi.com
Excellent graphics and a good use of Netscape frames combined with Real-Audio,
Shockwave, Java, and VRML make this site a must see. Pepsi knows their
marketing, and are using online memberships and surveys to capture important
data about their site audience.
2. http://www.duckman.com
This little site based on the now defunct cartoon show (voiced by Jason
Alexander of Seinfeild fame) makes excellent use of Shockwave and frames
providing a fun and funky experience.
3. http://www.discovery.com
Want to know about the plight of the Pacific Sea Tortoise? The Discovery
Channel has come online with an excellent web presence. Program listings,
email
reminder for your favourite shows, bulletin boards, catalogue shopping,
and much
more - all delivered with the touch of class you'd expect.
4. http://www.oscar-mayer.com
100% beef guaranteed! Interactive games, a talent search, Real Audio and
the
history of Wiener Mobile all combine to deliver a great site from this somewhat
unlikely source.
5. http://www.pointcast.com
Download the beta version of the PCN browser. It's a browser, a screen
saver,
and a news network rolled into one customizable package. Very cool.
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9.0 FAQ's
What's the difference between a website hit and an access?
Both of these terms are used to describe how often users are viewing files
within a website. A hit is recorded for every file opened within the site,
while an access counts only the number of .html pages viewed. Imagine a
typical
homepage consisting of an .html file with 6 .gif and 3 .jpeg image files
imbedded in it. When this homepage is viewed, 10 files in total will be
opened
(1 .html + 6 .gif + 3 .jpeg = 10 files) resulting in 10 hits being recorded.
At the same time, only one access will be counted, as only one .html file
has
been opened.
What type of browser are people using to access my site?
The safe answer here is Netscape. Over 82% of all web surfers are using
a
version of the Netscape Browser. No other supplier has a significant market
share. Here's the breakdown:
Netscape 2.0....................38%
Netscape 1.1....................41%
Netscape 1.0.....................3%
Netscape pre-1.0.................1%
Microsoft Internet Explorer......6%
Mosaic...........................4%
America Online (AOL).............3%
IBM OS/2 WebExplorer.............1%
Netcom NetCruiser................1%
Other............................2%
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