business case for ixps why are they useful as businesses?

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Business case for IXPs why are they useful as businesses? DE.CIX Presentation - Session 1 - TunIXP workshop on Internet Exchange Points, Tunis - 2013-04-29

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Page 1: Business case for IXPs why are they useful as businesses?
Page 2: Business case for IXPs why are they useful as businesses?

2013-04-29 ATI workshop on Internet Exchange Points, Tunis Arnold Nipper, CTO/COO and Founder [email protected]

Business case for IXPs why are they useful as businesses?

Page 3: Business case for IXPs why are they useful as businesses?

• What is an IXP?

• Why do IXPs exist?

• IXP as a market place

• IXP as a focal point for telecommunication industry

• How to market an IXP

#3

Page 4: Business case for IXPs why are they useful as businesses?

• A network infrastructure with the purpose to facilitate the exchange of Internet traffic between Autonomous Systems and operating below layer 3

• At least three or more members/customers connected

• (provides a members/customers list and traffic stats)

• What else?

What is an IXP?

#4

Page 5: Business case for IXPs why are they useful as businesses?

• The Internet was strictly hierarchically until early 1990‘s

– Packets between networks had to cross the NSF backbone

– Expensive and non performant

• BGP allows for arbitrary topologies

– First version (RFC1163) from 1991

– Networks may interconnect at any level

– The Internet is flat

– Hierarchy only in terms of providers (Tier 1, Tier 2)

Why do IXPs exist?

#5

Page 6: Business case for IXPs why are they useful as businesses?

• Networks have to interconnect somehow

• Interconnecting at dedicated places creates synergies

– The more networks, the greater the synergy

– Allows for higher capacity into the interconnect point

– Minimizes the number of interconnect points

• Direct interconnect

– Gives you full control over your packets

– Saves costs (at least if you have enough data)

Why do IXPs exist?

#6

Page 7: Business case for IXPs why are they useful as businesses?

• Most often IXP are associated with peering only

• According to the definition it‘s a place to „exchange“ Internet traffic. This might be

– Peering

– Upstream / Downstream

– …

• The IXP gear has to be located somewhere Colocation

– Lots of other service around

IXP as a market place

#7

Page 8: Business case for IXPs why are they useful as businesses?

• Where to place a (new) IXP?

– Where fibre landing stations are?

– Where financial hubs are?

– Where lots of people are?

– ???

• Once established, IXP form some sort of gravity

– Telecommunication circuits are „sticky“

– The more there are, the more will come

IXP as a focal point for telecommunication industry

#8

Page 9: Business case for IXPs why are they useful as businesses?

• Locally

– try to span your IXP across all relevant colocations

– Talk to ISPs, colocation, business development for your town/area

• Region

– Attend *nog, RIR meetings

– Become a member of your IXP association

• Generally

– Do a SWAT analysis

– Develop a clear strategy

How to market an IXP

#9

Page 10: Business case for IXPs why are they useful as businesses?

Thank you Join DE-CIX now! DE-CIX Competence Center Lindleystrasse 12 60314 Frankfurt/Germany Phone +49 69 1730 902 - 0 [email protected]

28. April 2013 – DE-CIX Management GmbH #10

DE-CIX Competence Center @ Kontorhaus Building

Frankfurt Osthafen (Docklands)