A Business Case for Peering in 2010 William
A Business Case for Peering in 2010 William B. Norton Executive Director, Dr. Peering. net wbn@Dr. Peering. net 30 -31 August 2010 Frankfurt, Germany 2/28/2021 11: 30: 43 AM 15 YEAR ANNIVERSARY PARTY 1 st DE-CIX CUSTOMER SUMMIT This work was sponsored in part by DE-CIX and Dr. Peering. net
Background 1987 – building Internet Ops community 1998 – building Peering Intelligence 2008 – consulting, education
Dr. Peering. net Peering Resources • • • • Internet Service Providers and Peering A Business Case for Peering About the White Paper Process The Art of Peering - The Peering Playbook The Art of Peering - The IX Playbook Chief Technical Liaison Ecosystems: 95 th Percentile Measurement for Internet Transit Asia Pacific Peering Guidebook Evolution of the U. S. Peering Emerging Video Internet Ecosystems European vs US Internet Exchange Points Internet Data. Center Build vs Buy Decision Internet Service Providers and Peering All freely available • • • Internet Transit Pricing Historical and Projections Modeling the value of an Internet Exchange Point NANOG History Peering: Motivations to Peer A Study of 28 Peering Policies Peering Simulation Game Peering: Top 10 Ways to Contact Peering Coordinators Peering: Top 10 Reasons NOT to peer Public vs Private Peering - the Great Debate The Folly of Peering Ratios Top 9 IX Selection Criteria Video Internet - The Next Wave of Massive Disruption to the U. S. Peering Ecosystem
This is how I level set INTERNET TRANSIT
Definition of Transit Definition: Internet Transit is the business relationship whereby one ISP provides (usually sells) access to all destinations in its routing table Simple Well defined No netops req’d Traffic flows opposite direction of routing announcements 95 th%
95 th Percentile P
Internet Transit Declines Noone makes $ Can’t go down trend
Market Prices for Transit Source: http: //drpeering. net/white-papers/Internet-Transit-Pricing-Historical-And-Projected. php
Good news – Traffic always grows P 60%V 80%
Group: What happens at $0/Mbps? • Brain. Storm – shout – Tell me how a content distribution business can make money when – The transit price is $0/Mbps
AFTER INTERNET TRANSIT DOES PEERING MAKE SENSE ANYMORE?
Analysis of Traffic Flow Vs. direct
Analysis of Traffic Flow Def. P
Definition of Peering Definition: Internet Peering is the business relationship whereby companies reciprocally provide access to each others’ customers. Peering is not a perfect substitute for transit, & is not transitive. Back to traffic flow…
Analysis of Traffic Flow Top 50
Peering Top 50 Histogram http: //drpeering. net/forms/peering-top-fifty-list. xlsx Cost
Cost of Peering is NOT FREE 1) Transport Fees 2) Colocation Fees 3) Peering (Port, membership, etc) Fees 4) Routing equipment #s
Cost of Peering $8000/mo $6000/mo $2000/mo Plug some #’s in 1) 10 G Transport Fees: $6 K/mo Colo $1000/mo 2) Colocation Fees: $1 K/mo 3) Peering (10 GPort, membership, etc) Fees: $2 K/mo Alternative to Peering: Transit at $5/Mbps 4) Routing equipment: $8 K/mo How do we compare peering and transit? Total Cost of Peering: $17 K/mo Can peer ~ 7 Gbps (for free) = $17 K/7000=$2. 43/Mbps best case scenario 1 M, 2 M, 3 M
Peering Cost $17 K/month $180. 00 Peering Cost in $/Mbps Exchanged $160. 00 $140. 00 $120. 00 $100. 00 $80. 00 $60. 00 $40. 00 $20. 00 $0. 00 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 Peering Metrics
Effective Peering Bandwidth / Minimum Cost of Traffic Exchange $180. 00 Peering Cost in $/Mbps Exchanged $160. 00 $140. 00 $120. 00 $100. 00 $80. 00 $60. 00 $40. 00 Minimum Cost of Traffic Exchange=$2. 34/Mbps $20. 00 0 70 0 90 0 11 00 13 00 15 00 17 00 19 00 21 00 23 00 25 00 27 00 29 00 31 00 33 00 35 00 37 00 39 00 41 00 43 00 45 00 47 00 49 00 51 00 53 00 55 00 57 00 59 00 61 00 63 00 65 00 67 00 69 00 0 50 30 10 0 $0. 00 Effective Peering Bandwidth=7000 Mbps
Peering Break Even Point $2. 34/Mbps Range…
Effective Peering Range Peering Break Even Point $2. 34/Mbps Effective Peering Bandwidth Generalized
Peering Break Even Point Minimum Cost of Traffic Exchange Effective Peering Range Effective Peering Bandwidth Peering Metrics
The Business Case for Peering in 2010 Frankfurt Madrid Budapest
Value Of an Internet Exchange Assume that the next best alternative to peering at DECIX is transit At $2/Mbps. If the DECIX were to disappear tomorrow, the peering population would be $2 M per month worse off. The DE-CIX is very valuable to the peering population there.
TOP TEN LISTS
Top Top 10 10 n Lists Why Peer? Why not Peer? Top 10 ways seasoned Peering Coordinators Contact Target ISPs
Top 4 Motivations to Peer ①Lower Transit Costs ②Lower Latency ③Usage-based traffic billing ④Marketing Benefits
Top 10 Reasons NOT to Peer ① Traffic Asymmetry ② Transit Sales Preferred ③ Ports are for Revenue ④ Keep Transit Prices from sliding ⑤ Prefer SLAs ⑥ Traffic Ratio denial ⑦ Transit is Cheaper ⑧ Personality Conflicts ⑨ We aren’t true Peers ⑩ We don’t have the cycles
Top 10 ways to contact Peers ① face-to-face at informal meeting in an Internet Operations forum like NANOG, IETF, RIPE, GPF, APNIC, AFNOG, etc. , ② face-to-face at Commercial Peering Forums like Global Peering Forum (you must be a customer of one of the sponsoring IXes) ③ face-to-face at IX Member Meetings like DECIX, LINX, or AMS-IX member meetings. ④ introductions through an IX Chief Technical Liaison or a peer that knows the right contacts ⑤ via electronic mail, using the pseudo standard peering@ispdomain. net or a personal contact, ⑥ from contacts listed on an exchange point participant list, or peeringdb registrations, ⑦ with tech-c or admin-c from DNS or ASN registries, ⑧ Google for peering contact AS peering , ⑨ from the target ISP sales force, at trade show or as part of sales process, ⑩ from the target ISP NOC.
Top 9 IX Selection Criteria ①Telecommunications Issues ②Deployment Issues ③ISP Current Presences ④Operations Issues ⑤Business Issues ⑥Cost Issues ⑦Credibility Issues ⑧Exchange Population Issues ⑨Existing Exchange vs. New Exchange?
Q&A Will this in a document form help you make the internal case for peering? What would appeal to your team?
- Slides: 32