understanding remote peering - ustelecom
TRANSCRIPT
USTelecom Webinar:
Understanding Remote Peering Tuesday, July 23 | 1:00 PM (ET)
Presented by William B. Norton
Chief Strategy Officer, International Internet Exchange (IIX), Executive Director, DrPeering International,
Author of “The Internet Peering Playbook: Connecting to the Core of the Internet”
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Understanding Remote Peering
William B. Norton Chief Strategy Officer, IIX
Executive Director, DrPeering International [email protected] [email protected]
US Telecom Webinar Live from Silicon Valley July 23, 2013 10AM PST
Meet the Presenter • Started working on Internet (NSFNET) in
1988
• 1st “Chairman” of North American Network Operator Group (NANOG) (1994-1998)
• 1998-2008 Co-Founder & Chief Technical Liaison, Equinix Inc. (NSDQ: EQIX)
• 2008-Present - Executive Director, DrPeering Int’l
• Two-day On-Site Peering Workshops (EU/Africa)
• The Internet Peering Playbook
• 2013 Chief Strategy Officer, International Internet Exchange (IIX)
Remote Peering is an important topic…
Remote Peering
• Hot Topic
• 130 of the 630 at AMS-IX are remote peering
• 50% of new at DE-CIX are remote peering
• This is not a fringe peering technique anymore
Source: Job Witteman (AMS-IX), Andreas Sturm (DE-CIX) Pre-webinar seminar…
Pre-Webinar Survey…
• Interest in Remote Peering? – Understand emerging Internet Operations trend
– Understand Peering
– Building a NG Network – see how R.P. applies
• Make sure to cover – Remote Peering impact on costs & architecture
– Applicability to Data Centers, IXPs, ISPs, CPs, etc.
• Remote Peering Pain Point – Deployment challenges
Agenda…
Agenda
1. Connecting to the Edge: Internet Transit
2. Connecting to the Core: Internet Peering
3. Connecting to the Core from afar: Remote Peering
– Remote Peering Use Cases
– Implications of Remote Peering
3 Internet Interconnection Techniques
Internet Transit…
1) INTERNET TRANSIT Connecting to the Edge of the Internet
Internet Transit Service Model
• 99.9% of all
• Announce Reachability
• Metered Service
• Simple
• “Internet This Way”
9
95th Percentile Billing Calculation • 5 minute samples
• Month of deltas
• 95th percentile
• Max(in,out)
10
Transit Pricing with Commits
• Volume discounts
• Contracts with terms and duration Commit Unit Price MinSpend
10 Mbps $12 per Mbps $120 /month
100 Mbps $5 per Mbps $500 /month
1 Gbps $3.50 per Mbps $3,500 /month
10 Gbps $1.20 per Mbps $12,000 /month
100 Gbps $0.70 per Mbps $70,000 /month
11
Internet Price Declines (U.S.)
• “Can’t go lower”
• “No one is making $”
• Pricing varies widely
• Trend unmistakable
12
2) INTERNET PEERING Connecting to the Core of the Internet
What is Internet Peering? • Definition: Internet Peering is the business relationship whereby two
companies reciprocally provide access to each others’ customers.
14
Internet Peering 3 Key Points
1. Peering is not a transitive relationship
2. Peering is not a perfect substitute
3. Peering is typically settlement free
15
The Top 5 Motivations to Peer 1. Lower Transit Costs
(#1 ISP Motivation to Peer)
2. Improve end user experience
(#1 Content Motivation)
3. Better control over routing-strategic
(Yahoo!, NetFlix 2008)
4. Usage based billing – make more money by peering
(AboveNet)
5. Sell more underlying transport capacity
(Telecom Italia)
16 Important Traffic is Peered
Important Traffic is Peered
Transit – your traffic is in same bucket Peering – you control this traffic
Does Peering cost less?
The Cost of Peering
Transport into DE-CIX $2000/mo local $4000/mo nearby $6000/mo far
Assumptions Far
Transport into IX: $6,000 per month
Colocation Fees: $1,000 per month
Peering Fees: $2,000 per month
Equipment Costs: $2,000 per month
Total Cost of Peering: $11,000 per month
18 Costs allocated across volume peered… Source: 2010 DE-CIX meeting, Frankfurt
Cost of Internet Peering
100 Mbps $110.00 per Mbps
200 Mbps $55.00 per Mbps
300 Mbps $36.67 per Mbps
400 Mbps $27.50 per Mbps
500 Mbps $22.00 per Mbps
600 Mbps $18.33 per Mbps
700 Mbps $15.71 per Mbps
800 Mbps $13.75 per Mbps
900 Mbps $12.22 per Mbps
1000 Mbps $11.00 per Mbps
1100 Mbps $10.00 per Mbps
1200 Mbps $9.17 per Mbps
1300 Mbps $8.46 per Mbps
1400 Mbps $7.86 per Mbps
1500 Mbps $7.33 per Mbps
1600 Mbps $6.88 per Mbps
1700 Mbps $6.47 per Mbps
1800 Mbps $6.11 per Mbps
1900 Mbps $5.79 per Mbps
2000 Mbps $5.50 per Mbps
2100 Mbps $5.24 per Mbps
2200 Mbps $5.00 per Mbps
Peering CostMbps ExchangedAssumptions Far
Transport into IX: $6,000 per month
Colocation Fees: $1,000 per month
Peering Fees: $2,000 per month
Equipment Costs: $2,000 per month
Total Cost of Peering: $11,000 per month
Cost of Peering allocated across the amount of traffic peered for free.
19 Generalized in Peering Vs. Transit Graph.
• Definition: The Peering Break Even Point is the point where the unit cost of peering exactly equals the unit price of Internet Transit.
20
We will use this graph to compare Transit, Peering and Remote Peering
Market Dynamics affecting these graphs…
Market Trends
Peering Cost Drops
…but Transit Price Drops Faster
21 These dynamics present brick wall…
Some question if peering makes sense today…RP
3) REMOTE PEERING Connecting to the Core of the Internet from afar
Definitions – What is Remote Peering?
• Definition: Remote Peering is peering without a physical presence required at the peering point.
• Definition: A Remote Peering Provider is an entity that sells access to exchange points across their transport infrastructure.
24 Review the costs of the Traditional Peering Model…
Traditional Peering Point to Multipoint Peering Example
Colocation Expense
Router CapEx
…and Remote Peering…
Remote Peering Point to Multipoint Remote Peering Example
Peering Fabrics Extended as VLAN To customer
No router No colo
Remote Peering Service Model…
Remote Peering Service Model
London Internet Exchange
Amsterdam Internet Exchange
German Internet Exchange
Why it works…
Remote Peering How does it work? Remote Peering Provider is already installed at the IXPs. Waves provisioned, instant turn up. Neutral RPP no business clash Peering Focus Speeds IXP deploy Little paperwork One Contract
Peering Fabrics Extended as VLAN To customer
No router No colo
Remote Peering Provider Node
Case Studies and Use Cases
CASE STUDY Four site European Deployment
Traditional Peering LinkedIn Case Study (NANOG 48 Peering BOF)
Colocation Expense
Router CapEx
Dublin
London
Frankfurt
Amsterdam Source: LinkedIn Spain (not shown)
$6K/mo
$3.5K/mo
$275K/mo
Peering Fabrics Extended as VLAN To customer
No router No colo
Summary…
Remote Peering LinkedIn Case Study (NANOG 48 Peering BOF)
$6K/mo
Dublin
London
Frankfurt
Amsterdam Spain (not shown)
Traditional Peering vs. Remote Peering
Source: Zaid Ali Kahn, LinkedIn
For the price of transport alone, one can remotely peer.
Use Cases…
USE CASES What Remote Peering Means to the Internet Peering Ecosystem
For NG Networking
• Blend Transit,
• Strategic Internet Traffic is remotely peered
• No capital costs
• Control over routing
For Int’l Networks
• Remote peer into cheap ecosystem
– Buy Transit
– Peer Away
• 98% Africa traffic from US/Europe
For Cable Companies / ISPs
• Case: Canadian MSO peers in U.S.
• But Remote Peering in LA and Miami for free Asia and South American Internet routes
For Content Companies
• Important Traffic is peered – Gold plated packets
– Peering simplified
– Peering Delivered
– Lower people cost
– Strategic intent
– Performance
• A/B testing
Commodity Transit is cheap, but some applications require more control / better performance
For Internet Service Providers, Remote Peering justifies building into more and even smallish regional IXPs. More controls over routing No Capital costs
Fast turn-up/transition strategy…
IMPLICATIONS FOR THE INTERNET PEERING ECOSYSTEM
What Remote Peering Means to the Internet Peering Ecosystem
1) For all Network Operators Remote Peering extends the life of peering
Effective Peering Range
Peering makes sense across a wider range of Mbps. Peer away 2-3Gbps and all costs are covered.
Breathe of fresh air into Peering
More peersmore IXP value…
2) For IXPs, Remote Peering increases the value of IXPs
More new peers, more traffic, more routes More Valuable IXPs
Colo->instant critical mass
Colocation Companies 3) For Colocation Centers the Remote Peering Provider enables instant critical mass ALL PEERING ROUTES ARE REACHABLE!
Reachable peers Remotely makes colocation center immediately valuable (Value > Cost)
Trials and transition
4) For all, rapid turn-up means Remote Peering enables a fast deployment/transition strategy:
1. Remote Peering
2. Full Network Deployment
Summary…
Remote Peering Summary
• New but rapid adoption
• Connect to the Core from afar
• $0 Capital Cost
• Minimal deployment time
• IXP VLANs extended to the customer router
Book Offer
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