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LU-CIX General Assembly Day
Remote Peering – A Shift in Internet Architecture
Ruth Plater, Head of Marketing
25 July 2013, Luxembourg
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Agenda
ü Who is IX Reach?
ü Peering Vs. Transit
ü Traditional Peering Model
ü Challenges to this Model
ü Remote Peering Model and it’s Impact
ü International Vs. Local
ü The Reaction of Internet Exchange Points
ü Conclusions
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Who is IX Reach?
ü Global Layer 2 Ethernet and MPLS network
ü 30 Major global cities (and growing)
ü 20 Internet Exchanges in Europe and the US
ü 75+ data centres on-net
ü Network connectivity and colocation solutions providers
ü Global leaders in remote peering
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Peering Vs. Transit
Peering
ü Settlement-free interconnection between two networks
ü Cost efficient
ü Traffic optimisation and low latency
ü Scalability and redundancy
ü Improved end-user experience – closer to the eyeballs
ü Community and marketing
Transit
ü Connecting smaller ISPs, for a fee, to the larger Internet
ü Historically more expensive
ü No control over routes
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Traditional Peering Model
Source: Re-Designed from Dr. Peering
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Challenges to this Model
ü Fixed costs (ports, colocation, routers)
ü Faster decline in Transit costs, with no end in sight
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Remote Peering Model
Source: Re-Designed from Dr. Peering
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How does Remote Peering Help?
ü Further cost reductions:
ü No colocation or hardware infrastructure at each IX required
ü No deployment/install fees
ü Bundled transport and connections at the Exchanges
ü Lower operational costs – customers only pay for the CDR they need
ü Reduction in upstream costs and reliance on multiple transit connections
ü Paperwork is vastly reduced for the IXPs
ü Single point of contact for legal, technical and billing for the customer
ü Turning up peering is a lot faster
Peering is therefore more accessible to smaller/medium sized networks and
developing markets.
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More to Consider: International Vs. Local
ü We used to say “peering keeps traffic local”
ü Remote peering promotes international traffic exchange
ü But it makes less sense over longer distances
ü Content providers want to be closer to the eye-balls
ü As a result more of a business case for local IXPs to be built
ü Network operators in developing markets connecting “locally” with each other in
remote locations
ü Higher adoption of remote peering to cut costs and headaches
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Reaction of IXPs to this Shift
ü Larger IXPs with critical mass are less at risk than smaller IXs without critical
ü IXPs are behaving more and more like networks:
ü Expanding geographically (both domestically and internationally) - becoming
multi-site IXPs
ü Larger IXs are expanding into new global markets (UAE-IX powered by DE-
CIX)
ü Small IXs are expanding regionally and offering remote peering to bigger IXs
ü Some have their own partial networks and offer connectivity
It is becoming increasingly difficult to differentiate between international and local
peering, and Networks and Internet Exchanges.
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LU-CIX: Central European Peering Hub
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LU-CIX: Central European Peering Hub
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Conclusions
ü Transit costs continue to fall and there’s no end in sight
ü Peering is still valuable for a network and operators normally use (or at least
consider) a blend of peering direct, remote peering AND transit
ü Remote peering reduces the costs of peering further
ü However, this makes less sense over longer distances
ü Remote peering is a great way to get closer to eyeballs
ü The roles of networks and IXPs will change in the future – it’s already happening!
ü Developing markets will play a vital part in this shift
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