LECTURE 2: THE OSI REFERENCE MODEL AND NETWORKING

This is the second lecture on Network Systems Design and Management. This lecture discusses
the Open Systems Interconnect (OSI) Reference Model and its role as far as networking is
concerned. This lecture explains how standards ensure greater compatibility and interoperability
between various types of network technologies. You will learn how the OSI reference model
networking scheme supports networking standards. In addition, you will see how information or
data makes its way from application programs (such as spreadsheets) through a network medium
(such as wires) to other application programs located on other computers on a network. As you
work through this lecture, you will learn about the basic functions that occur at each layer of the
OSI model, which will serve as a foundation as you begin to design, build and troubleshoot
networks.

2.2 Specific Objectives

At the end of the lesson you should be able to;
 Explain and give a brief overview of the Open Systems Interconnect (OSI) Reference
Model.
 Discuss the evolution of the ISO Standards.
 Explain advantages and/or purposes of the OSI Reference Model.
 Explain the functions of the seven layers of the reference model and the various networking
devices that operate at that layer.

2.3 Lecture Outline

2.3.1 The Overview of The OSI Reference Model

2.3.2 The evolution of ISO networking standards
2.3.3 Advantages and Use of The OSI Model
2.3.4 The Seven Layers
[Link] Physical Layer Functions
[Link] Data Link Layer Functions
[Link] Network Layer Functions
[Link] Transport Layer Functions
[Link] Session Layer Functions
[Link] Presentation Layer Functions
[Link] Application Layer Functions
2.4 Lecture Activities
2.5 Self-test Questions
2.6 Summary
2.3.1 The Overview of The OSI Reference Model

During the past decades, there has been a tremendous increase in the numbers and sizes of
networks. Many of the networks, however, were built using different implementations of
hardware and software. As a result, many of the networks were incompatible and it became
difficult for networks using different specifications to communicate with each other. To address
this problem, the International Organization for Standardization (ISO) researched many network
schemes. The ISO recognized that there was a need to create a network model that would help
network builders implement networks that could communicate and work together
(interoperability) and therefore, released the Open System Interconnection (OSI) Reference
Model in 1984.

When analyzing or learning a complex subject, it often helps to break it down into separate parts.
The Open System Interconnect (OSI) reference model divides the networking process into seven
manageable layers. Each layer of the OSI model defines a specific function of the network.
These functions are defined by the International Organization for Standardization (ISO) and are
recognized worldwide. The OSI reference model is used universally as a method for teaching and
understanding network functionality. Following the OSI model when designing, building,
upgrading, or troubleshooting will achieve greater compatibility and interoperability between
various types of network technologies.
The Open Systems Interconnection (OSI) reference model is an industry standard framework that
is used to divide the functions of networking into seven distinct layers. It is one of the most
commonly used teaching and reference tools today in networking. The International
Organization for Standardization (ISO) developed the OSI model in the 1980s.

There are seven layers in the OSI reference mode. Each layer provides specific services to the
layers above and below it in order for the network to work effectively. At the top of the model is
the application interface (layer), which enables the smooth usage of such applications as word
processors and web browsers. At the bottom is the physical side of the network. The physical
side includes the cabling (discussed earlier in this chapter), hubs, and other networking hardware.

2.3.2 The evolution of ISO networking standards

The early development of LANs, MANs, and WANs was chaotic in many ways. The early 1980's
saw tremendous increases in the numbers and sizes of networks. As companies realized the
money they could save and the productivity they could gain by using networking technology,
they added networks and expanded existing networks almost as rapidly as new network
technologies and products could be introduced.

By the mid-1980's, these companies began to experience growing pains from all the expansions
they had made. It became harder for networks that used different specifications and
implementations to communicate with each other. They realized that they needed to move away
from proprietary networking systems.
Proprietary systems are privately developed, owned, and controlled. In the computer industry,
proprietary is the opposite of open. Proprietary means that one or a small group of companies
controls all usage of the technology. Open means that free usage of the technology is available to
the public.

To address the problem of networks being incompatible and unable to communicate with each
other, the International Organization for Standardization (ISO) researched network schemes like
DECNET, SNA, and TCP/IP in order to find a set of rules. As a result of this research, the ISO
created a network model that would help vendors create networks that would be compatible with,
and operate with, other networks.

The process of breaking down complex communications into smaller discrete tasks could be
compared to the process of building an automobile. When taken as a whole, the design,
manufacture, and assembly of an automobile is a highly complex process. It’s unlikely that one
single person would know how to perform all the required tasks to build a car from scratch. This
is why mechanical engineers design the car, manufacturing engineers design the molds to make
the parts, and assembly technicians each assemble a part of the car.

The OSI reference model (Note: Do not confuse with ISO.), released in 1984, was the descriptive
scheme they created. It provided vendors with a set of standards that ensured greater
compatibility and interoperability between the various types of network technologies that were
produced by the many companies around the world.

How does the OSI model work?

A message begins at the top application layer and moves down the OSI layers to the bottom
physical layer. Communication across the layers of the reference model is achieved because of
special networking software programs called protocols. Protocols are discussed in the sections
that follow. The OSI was intended to be a model for developing networking protocols. However,
most of the protocols now used on LANs do not necessarily respond exactly to these layers.
Some protocols fall neatly within the boundaries between these layers, while others overlap or
provide services that overlap or span several layers. This explains the meaning of “reference” as
it is used in conjunction with the OSI reference model

Tip: Mnemonics to help remembering the 7 layers of the OSI are “All People Seem To Need
Data Processing”, or “Please Do Not Throw Sausage Pizza Away”.

2.3.3 Advantages and Use of The OSI Model

The OSI reference model is the primary model for network communications. Although there are
other models in existence, most network vendors, today, relate their products to the OSI
reference model, especially when they want to educate users on the use of their products. They
consider it the best tool available for teaching people about sending and receiving data on a
network.
The OSI reference model allows you to view the network functions that occur at each layer.
More importantly, the OSI reference model is a framework that you can use to understand how
information travels throughout a network. In addition, you can use the OSI reference model to
visualize how information, or data packets, travels from application programs (e.g. spreadsheets,
documents, etc.), through a network medium (e.g. wires, etc.), to another application program
that is located in another computer on a network, even if the sender and receiver have different
types of network media.

In the OSI reference model, there are seven numbered layers, each of which illustrates a
particular network function. This separation of networking functions is called layering. Dividing
the network into these seven layers provides the following advantages:

The OSI model is used for the following reasons:

 It divides the aspects of network operation into less complex elements.
 It enables engineers to specialize design and development efforts on specific functions.
 It prevents changes in one area from affecting other areas, so that each area can evolve
more quickly.
 It allows network designers to choose the right networking devices and functions for that
layer.
 It helps with testing and troubleshooting the network. When testing or troubleshooting a
network, start with Layer 1. If there are no problems with this layer, proceed to the next
layer and so on until the problem is found or the network can be shown to be free of
problems.

2.3.4 The Seven Layers

The bottom layer is Layer 1 and deals with the actual transmission of signals throughout the
network. As data is moved from the bottom of the model to the top, it is moved from hardware to
software components until it reaches Layer 7 called the application layer. In order for two
devices on the network to communicate, they both use the OSI model to ensure that data is sent
and received in the same manner. Data being received moves through the layers from bottom to
top and data being transmitted moves through from top to bottom. This method ensures common
grounds for devices to communicate.

The seven layers of the OSI model are the following:

 Application (Layer 7) - The main function of the application layer is to provide network
services to the end user applications. These network services include file access,
applications, and printing.
 Presentation (Layer 6) - This layer provides formatting services to the application layer
by ensuring that data that arrives from another computer can be used by an application.
For instance, it translates characters from mainframe computers into characters for PCs,
so that an application can read the data. This layer is also responsible for encryption or
compression/decompression of data.
  Session (Layer 5) - The session layer establishes, maintains, and manages conversations,
called sessions, between two or more applications on different computers. The session
layer is involved in keeping the lines open for the duration of the session and
disconnecting them at the conclusion.
 Transport (Layer 4) - This layer takes the data file and divides it up into segments to
facilitate transmission. This layer is also responsible for reliable transport between the
two hosts.
 Network (Layer 3) - The network layer adds logical or network addresses, such as
Internet Protocol (IP) addresses, to information that passes through it. With the addition
of this addressing information, the segments are now called packets. This layer is where
the best path is determined to move data from one network to another. Routers perform
this operation and are thus referred to as Layer 3 devices.
 Data Link (Layer 2) - This layer deals with error notification, topology, and flow
control. This layer recognizes special identifiers that are unique to each host, such as
Burned in Addresses (BIA) or Media Access Control (MAC) addresses. The packets from
Layer 3 are placed into frames containing these physical addresses of the source and
destination hosts.
 Physical (Layer 1) - This layer includes the media such as twisted-pair, coaxial, and
fiber-optic cable to transmit the data frames. This layer defines the electrical, mechanical,
procedural, and functional means for activating, maintaining and deactivating the
physical link between end systems. If the link between hosts or networks is severed or
experiencing problems, data may not transmit. That is why the health of the cables is vital
for every network.

[Link] Physical Layer Functions

[Link].1 Working on the Physical Layer

Since the physical layer includes all the media upon which the entire network is based, it is the
layer with which the cable installer will be most concerned. Media includes twisted pair, fiber-
optic, and coaxial cable as well as free space for waves from radio, infrared, and other wireless
technologies. This section of the chapter discusses the functions of the physical layer, the role of
repeaters and hubs, the effect of wiring errors, and how to avoid common wiring errors during
installation.

Encoding is another function of Layer 1. Encoding is the conversion of the information into bits
(0s and 1s). It is these bits that are then transmitted on the cable. When the source host sends data
such as an e-mail message with its addressing information, the physical layer converts the data
into bits and then transmits those bits over the medium. When the destination host receives these
bits, Layer 1 converts the bits back into the original format of the e-mail message.

Two types of LAN devices that operate at this layer are repeaters and hubs. Their role is to
regenerate the signals that pass through them.
[Link].2 Repeaters

As a signal travels on a wire, it grows weaker. This is referred to as attenuation. To keep the
signal from becoming unrecognizable to the receiving host, a repeater is placed on the wire. A
repeater is a networking device that takes in the weakened signal, cleans it up, and regenerates it
before sending it on its way. Repeaters are generally used near the outer edges of networks where
attenuation is most likely to occur.

[Link].3 Hubs

Like repeaters, active hubs also regenerate signals. The difference between the two is that hubs
have many more ports than repeaters. Hence hubs are often called multi-port repeaters. Unlike
repeaters, hubs are often used as the central point in a star topology or as the secondary points in
an extended star topology to join segments of a network. One drawback to using hubs as the
central points in networks is that it forwards all data to every host on the network. Since the
speed of network is dependent on the amount of traffic that is on the wire, unnecessary traffic
results in a slowdown of the network. Therefore, networking devices that can filter traffic will
help cut down on the amount of traffic between segments of a network. The devices that can
filter traffic are Layer 2 and Layer 3 devices.

[Link].4 The Effect of Wiring Errors

When there are problems with a network, troubleshooting should begin with Layer 1. It is
estimated that about three-quarters of all network problems are Layer 1 problems. Many of these
could be avoided when installing cable. Wiring is a critical component in the process of
transmitting data across a network. Common installation errors can be made and the effect these
have on a network should be avoided by implementing proper wiring techniques.

One of the most common wiring errors by cable installers is laying cables near other wires,
particularly power cables, or sources of power. Power cables emit background noise, which can
interfere with the signals on network cables. Other sources of electromagnetic noise like
fluorescent lights and machines can also cause problems with signals on wires.

Another common error is improperly terminating wires with jacks and plugs. This can lead to the
wires emitting signals that interfere with the signals on other wires, a condition called crosstalk.
When errors are caused by crosstalk or other interference, it means that data is lost and must be
retransmitted.

Finally, wires can be damaged as they are pulled into place. Pulling cables too tightly, nicking
them, or bending them can cause problems that may not be apparent immediately, but can cause
the electrical properties of the wire to change slowly over time.

All of these problems can be avoided during installation. A professional cable installer will take
into account the location of power cables and other electromagnetic sources, take care when
terminating wires to prevent crosstalk, and take care when pulling wire. It is important that these
errors are avoided when installing cable.
[Link] Data Link Layer Functions

Unlike Layer 1 networking devices, Layer 2 LAN devices help filter network traffic by looking
at the MAC addresses in the frame. These MAC addresses are physical addresses burned into the
network interface cards (NICs) on PCs and devices. The data link layer devices reference these
addresses when performing its functions. The two types of LAN network devices that look at the
MAC addresses are bridges and switches. This section discusses the functions of both and how
they are used to filter traffic and reduce congestion on a network.

[Link].1 Bridges

The existence of a physical address or media access control (MAC) address for each computer
makes it possible to use a networking device that can read these addresses to filter traffic.
Filtering traffic helps to solve the problem of network congestion. One device that can read
MAC addresses is called a bridge. A bridge keeps a table with all MAC addresses on the
network. This table enables the bridge to recognize which MAC addresses are on each side of the
bridge. A bridge works by keeping traffic destined for one side of the bridge to that side alone.
Since frames are not forwarded throughout the whole network and are contained in the
appropriate network segment, network traffic is minimized. Less network traffic means less
congestion, which results in a more efficient and faster network.

Less traffic can also mean a decrease in collisions. Collisions occur when data packets collide on
the media. The most common type of network is Ethernet. In an Ethernet network, a complete
data frame is transmitted one at a time. Only when that frame transmission is complete can a new
frame begin. If more than one frame is sent at a time, they may collide and the contents are
destroyed. The frames have to be resent, tying up the network and possibly causing other
collisions. The number of collisions may become so great that the network uses most of its
resources to detect and recover from collisions. This results in excessive network congestion and
significant slow down of the network. To solve this problem, bridges and switches are used to
create several collision domains rather than just a single large one.

[Link].2 Switches

A switch is sometimes referred to as a multi-port bridge, yet its functions are far more advanced.
A switch can divide the network into many subnetworks, or smaller networks, depending on the
number of ports on the switch. A switch helps to keep network communications from reaching
beyond their destination.

A switch allows multiple connections within it. When two hosts are communicating, they use
only a pair of ports. This allows other hosts on other ports to communicate without causing
collisions or affecting other transmissions.

Switches are also useful because several ports can be grouped together into a virtual local-area
network (VLAN). VLANs can be used to secure certain parts of the network or to manage
departments within a company. For instance, a company may group all accounting PCs and
relevant servers on the same VLAN so that they can communicate with each other and not allow
any other user access to the information.

While switches and bridges are used to filter network traffic based on MAC addresses, Layer 3
devices look at the network addresses to determine the path that data will take.

[Link] Network Layer Functions

The other layers of the OSI model deal with network addressing, reliable delivery of data,
managing connections, data formatting, and supporting applications. The first of these layers to
be discussed is Layer 3, the network layer.

The network layer deals with higher level addressing schemes and path determination. The
network layer address is the Internet Protocol (IP) address of a computer. Each computer on a
network has an IP address to identify its location on the network. It indicates to which network
and subnetwork a computer belongs. The IP address can be changed when a computer is moved
to another location. On the other hand, the MAC address, Layer 2, is burned into the NIC at the
factory so it is a permanent address that never changes. Even if the host moves to another
location on the network or to another network altogether, the MAC address is the same.

In addition to addressing, another function of the network layer is to help determine the best path
that data will take through the LAN or a WAN. This is achieved by using a device called a router.

[Link].1 Routers

A router is a Layer 3 networking device that connects network segments or entire networks. It is
considered more intelligent than Layer 2 devices because it makes decisions based on
information received about the network as a whole. A router examines the IP address of the
destination computer to determine which path is best to reach the destination. Path determination
is the process that the router uses to select the next hop, that is, the path to the next connected
router that will move the data toward its destination. This process is known as routing.

After routers determine the path, the transport layer is responsible for reliable data delivery.

[Link] Transport Layer Functions

The transport layer, Layer 4, is responsible for segmenting the data file and regulating the flow
of information from source to destination. This end-to-end control is provided using a variety of
techniques, such as sequence numbers, acknowledgements, and windowing.

Since data packets may be sent by different paths and arrive at the destination at different times,
sequence numbers ensure that the data file will be reassembled so that it appears as the same file
sent. When the data file is segmented, each segment receives a sequence number. When the data
segments reach the destination, they are sorted in order according to the sequence numbers so
that the original data file can be reassembled.

Windowing is a flow control mechanism used in conjunction with acknowledgements. First a

window size, that is, the number of bytes that is sent at any one time, is agreed upon by both the
sending and receiving hosts. After those bytes have been sent, the sending host must receive an
acknowledgement from the receiving host before it can send any more segments. If for some
reason the destination host does not receive the information, it does not send an
acknowledgment. Because the source does not receive an acknowledgment, it knows that the
information should be retransmitted and that the transmission rate should be slowed. The phrase
"quality of service" is often used to describe the purpose of Layer 4 because of its use of
windowing and acknowledgements.

[Link] Session Layer Functions

Whereas the transport layer is responsible for the reliable delivery of the data, the session layer,
Layer 5, is responsible for managing the transmission session. The session layer sets up,
maintains, and then terminates sessions between hosts on the network. This includes starting,
stopping, and resynchronizing two computers as they communicate, a process called dialog
control. Another primary role of the session layer is to provide services to the presentation layer.

[Link] Presentation Layer Functions

After a session has been terminated, data passes to Layer 6, the presentation layer. This layer
facilitates communication between applications on diverse computer systems to occur in a
manner that it is transparent to the applications. It does so by reformatting the data. For example,
data received from a mainframe computer uses EBCDIC characters that cannot be read by a PC.
The presentation layer translates the EBCDIC characters into ASCII, the format used by PCs.

The presentation layer also performs data compression and encryption functions. Compression is
when frequently repeated words or combinations of characters can be indicated by a single
character, thus reducing the size of the file. When the destination host receives the compressed
file, it uses a compression key to decompress the file to its original size.

Encryption protects data from being read by unauthorized viewers. Encryption is crucial for
sensitive data, such as financial transactions, personal information, or company trade secrets that
are being transmitted to a computer on the same network or across the Internet. When the
destination host receives the encrypted file, it uses a key to decrypt the file. After the data has
been decrypted, decompressed, and formatted, it passes to the application layer.

[Link] Application Layer Functions

The uppermost layer of the OSI model, Layer 7, is the application layer. This is the layer closest
to the end user. The application layer does not provide services to any other OSI layer. Instead it
provides services to applications used by the end user. This includes spreadsheet programs, word
processing programs, banking terminal programs, e-mail, Telnet, file transfer protocol (FTP)
programs, and hypertext transfer protocol (HTTP) programs.

2.4 Lecture Activities

 Identify the network devices that have been implemented in your organization.
 Examine the main functions of these devices and their implications on the network.
 Discuss any possible areas of improvement on your network.

2.5 Self –Test Questions

 What does OSI stand for?
 Outline and briefly explain the network devices that operate in Layer 2 and 3 of the
OSI Reference Model.
 Explain how the OSI Reference Model can be used in network design.

2.6 Summary
In this lesson we have learnt:
 What ISO-OSI Reference Model is all about.
 About the advantages of the OSI Reference Model.
 About the seven layers of the OSI Reference Model.
 About the functions of each of the layers and the different network devices that
operate at these layers.
2.7 Suggestion for Further Reading
The learner can read further on the OSI Reference Model by reviewing examples where it has been
employed both in troubleshooting applications and designing and troubleshooting networks and
networking devices. The learner can also compare the OSI Reference Model and the TCP/IP
Protocol Suite.