understanding remote peering - ustelecom
TRANSCRIPT
![Page 1: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/1.jpg)
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”
![Page 2: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/2.jpg)
Questions for the Instructor or for a
Logistics Issue
Use the chat feature on the online player
or
Email [email protected]
![Page 3: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/3.jpg)
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
![Page 4: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/4.jpg)
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…
![Page 5: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/5.jpg)
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…
![Page 6: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/6.jpg)
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…
![Page 7: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/7.jpg)
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…
![Page 8: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/8.jpg)
1) INTERNET TRANSIT Connecting to the Edge of the Internet
![Page 9: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/9.jpg)
Internet Transit Service Model
• 99.9% of all
• Announce Reachability
• Metered Service
• Simple
• “Internet This Way”
9
![Page 10: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/10.jpg)
95th Percentile Billing Calculation • 5 minute samples
• Month of deltas
• 95th percentile
• Max(in,out)
10
![Page 11: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/11.jpg)
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
![Page 12: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/12.jpg)
Internet Price Declines (U.S.)
• “Can’t go lower”
• “No one is making $”
• Pricing varies widely
• Trend unmistakable
12
![Page 13: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/13.jpg)
2) INTERNET PEERING Connecting to the Core of the Internet
![Page 14: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/14.jpg)
What is Internet Peering? • Definition: Internet Peering is the business relationship whereby two
companies reciprocally provide access to each others’ customers.
14
![Page 15: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/15.jpg)
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
![Page 16: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/16.jpg)
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
![Page 17: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/17.jpg)
Important Traffic is Peered
Transit – your traffic is in same bucket Peering – you control this traffic
Does Peering cost less?
![Page 18: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/18.jpg)
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
![Page 19: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/19.jpg)
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.
![Page 20: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/20.jpg)
• 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…
![Page 21: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/21.jpg)
Market Trends
Peering Cost Drops
…but Transit Price Drops Faster
21 These dynamics present brick wall…
![Page 22: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/22.jpg)
Some question if peering makes sense today…RP
![Page 23: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/23.jpg)
3) REMOTE PEERING Connecting to the Core of the Internet from afar
![Page 24: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/24.jpg)
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…
![Page 25: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/25.jpg)
Traditional Peering Point to Multipoint Peering Example
Colocation Expense
Router CapEx
…and Remote Peering…
![Page 26: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/26.jpg)
Remote Peering Point to Multipoint Remote Peering Example
Peering Fabrics Extended as VLAN To customer
No router No colo
Remote Peering Service Model…
![Page 27: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/27.jpg)
Remote Peering Service Model
London Internet Exchange
Amsterdam Internet Exchange
German Internet Exchange
Why it works…
![Page 28: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/28.jpg)
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
![Page 29: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/29.jpg)
CASE STUDY Four site European Deployment
![Page 30: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/30.jpg)
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
![Page 31: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/31.jpg)
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)
![Page 32: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/32.jpg)
Traditional Peering vs. Remote Peering
Source: Zaid Ali Kahn, LinkedIn
For the price of transport alone, one can remotely peer.
Use Cases…
![Page 33: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/33.jpg)
USE CASES What Remote Peering Means to the Internet Peering Ecosystem
![Page 34: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/34.jpg)
For NG Networking
• Blend Transit,
• Strategic Internet Traffic is remotely peered
• No capital costs
• Control over routing
![Page 35: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/35.jpg)
For Int’l Networks
• Remote peer into cheap ecosystem
– Buy Transit
– Peer Away
• 98% Africa traffic from US/Europe
![Page 36: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/36.jpg)
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
![Page 37: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/37.jpg)
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
![Page 38: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/38.jpg)
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…
![Page 39: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/39.jpg)
IMPLICATIONS FOR THE INTERNET PEERING ECOSYSTEM
What Remote Peering Means to the Internet Peering Ecosystem
![Page 40: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/40.jpg)
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…
![Page 41: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/41.jpg)
2) For IXPs, Remote Peering increases the value of IXPs
More new peers, more traffic, more routes More Valuable IXPs
Colo->instant critical mass
![Page 42: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/42.jpg)
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
![Page 43: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/43.jpg)
4) For all, rapid turn-up means Remote Peering enables a fast deployment/transition strategy:
1. Remote Peering
2. Full Network Deployment
Summary…
![Page 44: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/44.jpg)
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
![Page 45: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/45.jpg)
Book Offer
• Send email to [email protected]
– Subject: webinar book
• Amazon.com: $83.31
• IIX Sponsorship: $9.99
![Page 46: Understanding Remote Peering - USTelecom](https://reader030.vdocuments.us/reader030/viewer/2022020912/6203487824f6b61e9c66332b/html5/thumbnails/46.jpg)
Upcoming Events
Impact of SDN on the Evolution of Service Provider Networks
Thursday, August 1 | 1:00 PM (ET)
USTelecom CSM Training Seminar
USTelecom SIP Training & Certification
USTelecom WebRTC Courses
Learn more at http://www.ustelecom.org/events-education