Use of the Internet actually consists of the use of two distinct facilities: connection and servers. In essence, dialing the Internet from a computer and modem is like switching on a television. It's either on or it's off. Once on (ie connected), all the services of that device are available to you. In the case of the TV, these services may include NBN, TEN, FoxTel, hired videos, teletext or a Nintendo game. Similarly, when the Internet is "on", you can access any server on the Internet to send and receive email, browse web pages, order goods, download software, chat with other users, play games or whatever.

So, you can connect to the Internet via one ISP (Internet service provider), but generally access any server on the Internet. For instance, you might have a dial up connection account with Telstra Big Pond. While connected, you can generally access your email stored at some other provider's server, such as Ozemail, Hotmail or Microplex, anyone's web server and download software from all over the world.

Broadly speaking, any company which provides Internet connection facilities or servers is referred to as an ISP or Internet Service Provider. Most ISP accounts incorporate connection and servers. So the typical user has an email account with the same provider who supplies the dial up connection. As already stated, however, it is important to realise that the connection and servers are technically separate.

Only a few years ago, establishing a private connection to the Internet cost tens of thousands of dollars per year. With the advent of consumer focused ISPs, the cost has progressively reduced. Today, the typical home Internet user has a dial up account for which they are charged according to how often they use it. The connection is initiated whenever the user wants to access some Internet services and disconnected when they finish for that session.

But such a "dial on demand" account is not well suited for business use. By contrast, a permanent connection can make business use of the Internet not only useful but also rewarding. A permanent connection means that your computer or whole network is connected to the Internet 24 hours a day, 365 days a year. Your computer is always "on line". The Internet is always "switched on".

Access to services anywhere is the world is immediate, without waiting for the modem to dial. Many dial on demand restrictions disappear, such as:

1. Incurring another local phone charge for each session.
   
2. Hurrying through browsing web pages so the hourly ISP charges stop.
   
3. Frequently being unable to connect because all phone lines at the ISP are busy.
   
4. Waiting for the modem to dial and complete the connection.
   
5. Slow access speeds through some of the minor ISPs.
   
   

With a permanent connection, Internet use and results are second nature, enabling you to:

1. Look up a phone number in the on line Yellow Pages or White Pages.
   
2. Searching the world in a few seconds for information about a particular product or problems that you're experiencing.
   
3. Browse an on line catalogue from a supplier with complete colour photos and specifications in as much detail as you desire. No fax, phone call or out of date product brochure can possibly convey the same information.
   
4. Fill in an on line order form.
   
5. Deal with suppliers and associates at your own convenience without playing phone tag or giving up after 5 pm.
   
6. Deal direct with the manufacturers of goods, regardless of location or time zone.
   

Today, a business can keep a permanent connection to the Internet from as low as $22 per month. The one off set up cost for the connection is usually around $550. A dedicated phone line is needed, so an additional line installation and rental may be required if no spare is available. Alternatively, broadband services such as ADSL are becoming more affordable, typically costing $64 per month and providing ten times the speed of a modem.

Most businesses have more than one computer. In many cases, each computer has its own modem for its own dial on demand Internet connection. This duplication is very inefficient and costly. A single Internet connection can be shared amongst all the computers at once, especially via a permanent connection.

For many reasons, apart from the Internet, it makes sense to network together all computers in a business. Because the network is within the premises, it is called a "local area network" or LAN. Connecting all computers in a business to a network is now very cheap, as low as $20 purchase per computer. Most businesses with multiple computers already have some form of network installed.

Rather than connecting just one computer's modem to the Internet, the modem can instead be plugged into the LAN as a whole, facilitating Internet access for all users through the one modem connection. However, the modem can not be plugged directly into the LAN cabling. A "router" has to connect the modem to the LAN. A router has a socket for the modem and a network socket for the LAN, acting as a type of adapter. It also acts as a filter or "firewall", preventing outside Internet users from accessing your internal information. A router costs between $200 and $800, depending on functionality.

The router has to be configured before it can be used. The details include those that you would normally enter into a single computer to connect it to the Internet. Such techno-babble as "TCP/IP address", "ISP phone number", "subnet mask" and so on have to be set up.

The good news is that the router only has to be customised once for your network and ISP connection. A business would normally have a consultant set up the whole permanent connection, router and so on in a few hours, rather than spend weeks of their own time setting up these once off requirements.

So far, all of the services discussed have been passive. That is, you are using someone else's server, retrieving or submitting information to it. You are acting as a client to other business’ servers. You have control of your own use of the Internet but you can't provide resources for others. But having a permanent connection opens one particularly important door: hosting your own Internet services.

Already having a permanent connection for the whole business, it is simple to add one more computer to the LAN to provide services for external Internet users and your own staff. For most small businesses, the requirements of this "server" are very minimal. An old unused computer otherwise gathering dust can usually be configured with mostly free server software.

Internet servers provide "standard" resources compatible with any computer platform. For instance, a Macintosh can provide web and email services to Windows and UNIX clients without any compatibility problems. Communication standards such as SMTP, IMAP, FTP and HTTP allow easy interoperability, streamlined upgrades to faster hardware or more flexible software and a mixture of various software packages and platforms all happily coexisting. The rapid development of Internet standard software has facilitated its spread from Internet only servers to servers inside LANs. An "intranet" is a LAN which uses Internet standard services.

Hosting your own services reduces your Internet costs, saving hundreds of dollars per month in ISP fees for services such as hosting your email accounts and web site.

Each computer on the Internet is issued a number, such as 203.57.42.254. Because these numbers are not easily remembered by us mere mortals, they are translated into “host names” and “domain names” such as “tandb.com.au”. Most companies in Australia have a domain name ending in ".com.au". You've probably noticed an increasing number of television and print advertisements now including an Internet domain name, such as www.hoyts.com.au, www.sony.com.au, www.greengrocer.com.au, ninemsn.com.au. A domain name is your business's identity on the Internet. Anyone who knows your domain name will know where to find your web page, browse through your products and send you email. Publicising your domain name can be as simple as including it on your stationery. If you already have an ISP's domain name on your stationery (eg an old email address), all inquiries can automatically be forwarded to your new address until the stationery is updated. Like a business name, a domain name has to be registered, at a cost of about $70 per year.

The most common use of the Internet is still email. Electronic mail enables you to compose an accurate and succinct message which can be composed at your convenience, sent in seconds directly to anyone in the world for reading and response at their convenience. Email is cheaper and faster than fax or post. It provides a written record in an indexed filing system. Correspondence from months ago is easily accessible.

By hosting your own email server, your staff can send email within the office, between departments or amongst a work group comprising internal and external staff. Office memos in email form are delivered immediately and remain for later reference. You can have departmental addresses such as sales@mycompany.com.au and accounts@mycompany.com.au which are forwarded on to the correct individuals. With your own server, you have complete control over the addresses, where it's forwarded, automated replies and other facilities which would normally cost hundreds of dollars from an ISP.

If you've visited good web pages of other companies, then you know how useful it can be to have instant access to their product listings, photos, instructions, technical help, and contact details. Publishing useful information for your existing and potential customers can be a distinguishing service. Your customers have 24 hour pre and post sales support with negligible ongoing costs to you. Your site can usually be linked to other relevant sites to provide your customers with specialised information about your products or industry. For instance, a small video shop can easily link its catalogue to the existing mountains of information already published about each movie that they stock.

Many search engines exist on the Internet, such as Yahoo, Excite, Looksmart and AltaVista. They compile an index of all known web sites which any Internet user can search. By publishing useful information and adding your site to the indexes, new customers anywhere in the world, who may otherwise have never heard of you, will be directed to your on line catalogues. They will be browsing your web site because they are looking for specific products or services which were found on your site.

Having a web site is not an all encompassing marketing strategy. Careful consideration must be given to its target audience, maintenance, cross promotion and suitability for your business. But whatever you set up will provide marketing for close to zero ongoing cost.

The content of your web site should be focused on information rather than sparkle. The average user of a word processor can be quickly taught how to update simple web pages. A web site can be enhanced to provide interactive services such as on line shopping for customers to purchase goods with credit cards or submit order forms.

1. A permanent Internet dial up connection. ISP charges are as low as $500 set up and $20 per month for modem, or typically $126 setup and $60 per month for ADSL.
   
2. A router connecting the whole LAN via one modem to the Internet. $200 - $800 once for the router.
   
3. A registered domain name. $70 per year.
   
4. Internal domain, email and web servers. Usually free software. A revitalised old computer or a purchase of under $600 should be a sufficient minimum. A professional business IMAP email server such as CommuniGate Pro will cost about $960, but quickly pay for itself in saved time and useful business features.