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The Structure of Today’s Public Internet
The
21st Century Internet Peering Ecosystem
©2012 DrPeering Interna=onal Licensed material – [email protected] hCp://DrPeering.net
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Tier 1 ISPs migrate back into IXPs
• 1999 WP: Interconnec=on Strategies for ISPs
• Working closely to understand their mo=va=ons
• Iden=fy pain point: 18 mos past FOC date
• IXPs can do 24 hr turnaround
• Documented the math • 5 ISPs in completely cover the cost of metro circuits
• And no 18 mo turnaround
• 8 independent RFPs released
• 2001: EQIX wins most
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Where the Tier 1 ISPs peer
Spread the load, more paths to des=na=on, beCer performance for customers.
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SIX
EQIX Ashburn. VA
EQIX Dallas, TX
EQIX Chicago, IL
EQIX San Jose, CA
EQIX Los Angeles, CA AtlantaIX
<Various…>
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Evolu=on of the U.S. Peering Ecosystem
• 1999/2000 Economic Collapse of the Telecom Sector
• Growth in used equipment market • Upstream for cable cos goes bankrupt (@Home) 30 days no=ce to be ISPs!
• Peer-‐to-‐peer file sharing fills pipes • Transit prices drop
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Evolu=on #1 – Cable companies peer
• 40% P2P (Kazaa) • Capacity upgrades filled immediately
• Cable doesn’t compete with cable
• Conference call
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Cable Companies Peer
• Significant evolu=on because – Massive Volume of traffic peered
– Kazaa Effect • 20%+ bump • “More local”
– Grandma Story – Cable companies adopted open Peering Policy
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Evolu=on #2 – Large Scale Network Savvy Content Providers Peer
• #1 Improve end user experience
• Reduce transit costs • Move to new data center anyway
• Large volume traffic • Open Peering Policies • Leaders: Yahoo!, Google, Electronic Arts, Sony Online, Microsou, etc. 7
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LSNSCP Peer
• Significant because:
1) End-‐User performance 2) Transit cost reduc=on 3) Needed to move anyway (out of bankrupt data center)
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Evolu=on #3: Cable Companies and LSNSCP Peer
• Open Peering • Massive traffic pulled from Tier 1 ISPs
• Fat Middle of the Internet Peering Ecosystem
• “Donut Peering” • Leaders pave the wave
• “We expect customers to to that which is ra=onal” – Level 3 9
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Evolu=on #4: CDNs Dominate Traffic Volume
• “Web Objects” uploaded to CDN
• Video Objects are massive
• Selling Transit but delivering from a place closer to the eyeballs
• Open Peering policy • 10G deployment story
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Evolu=on #5: Video
P2P LawsuitsProducts Adjusted
Release Window ShortenedSimultaneous Int’l Releases
Digital Download - Rent/BuyCommercial-sponsored TV: Hulu
5M SkypeTV 2010
VideoConf
Innovation
Hollywood System Morphs...
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A fundamental shiu in the power base of the Internet Peering Ecosystem
#6: Access Power Peering
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Evolu=on #6: Access Power Peering
• 2010 – 40-‐50% of all Internet Traffic is Video
• Video unlike other content: quality maCers – Ar=facts & suspension of disbelief
– Massive volume
• Cable Companies peering policy changes – Balanced ra=os – Paid Peering offered
• Video is or soon will be the dominant applica=on
• Massive customer demand
• Who has the power? – Eyeball networks? – Content distributors?
• We will demonstrate this with a recent story
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2010-‐2012 CAPTIVE ACCESS POWER PEERING
The Hot Topic Today in the Internet Peering Community
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Cap=ve Access Power Peering Example
Level3 broad business deal Fiber, transit, free peering (on-‐net), etc. *3 Ways to reach Comcast 1) Transit (LLNWàGLBXàComcast) 2) Paid Peering (LLNW-‐>Comcast) 3) Peering (LLNW-‐>Comcast) w/vol & <2.5:1
ra=o Video is highly asymmetric up to 30:1 Comcast peering ra=o requirement<2.5:1 All paths require Comcast Peering is direct, high performance Transit is subject to loss/latency OTT Video requires high performance No alterna=ve path to Comcast eyeballs but through Comcast (Cap=ve customers)
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Cap=ve Access Power Peering Example
*3 Ways to reach Comcast 1) Transit (AàGLBXàComcast) 2) Paid Peering (A-‐>Comcast) 3) Peering (A-‐>Comcast) w/vol & <2.5:1 Video is highly asymmetric up to 30:1 Comcast peering ra=o requirement<2.5:1 All paths require Comcast Peering is direct, high performance Transit is subject to loss/latency OTT Video requires high performance No alterna=ve path to Comcast eyeballs but through Comcast (Cap=ve customers) If you are in the video distro biz you must buy paid peering from Comcast
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Cap=ve Access Power Peering Example
*3 Ways to reach Comcast 1) Transit (AàGLBXàComcast)or WORSE! 2) Paid Peering (A-‐>Comcast) 3) Peering (A-‐>Comcast) w/vol & <2.5:1 Video is highly asymmetric up to 30:1 Comcast peering ra=o requirement<2.5:1 All paths require Comcast Peering is direct, high performance Transit is subject to loss/latency OTT Video requires high performance No alterna=ve path to Comcast eyeballs but through Comcast (Cap=ve customers) If you are in the video distro biz you must buy paid peering from Comcast
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Cap=ve Access Power Peering Example
*3 Ways to reach Comcast 1) Transit (AàGLBXàComcast)or WORSE! 2) Paid Peering (A-‐>Comcast) 3) Peering (A-‐>Comcast) w/vol & <2.5:1 Video is highly asymmetric up to 30:1 Comcast peering ra=o requirement<2.5:1 All paths require Comcast Peering is direct, high performance Transit is subject to loss/latency OTT Video requires high performance No alterna=ve path to Comcast eyeballs but through Comcast (Cap=ve customers) If you are in the video distro biz you must buy paid peering from Comcast
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1) NetFlix Applica=on 2010
NetFlix distributes Video via CDNs Massive growth O(100’sGbps) Great Service Level 3 bids cheaper and wins the NetFlix business Who wins? Who loses?
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1) NetFlix Applica=on 2010
NetFlix distributes Video via CDNs Massive growth O(100’sGbps) Great Service Level 3 bids cheaper and wins the NetFlix business Who wins? NetFlix – lower prices Level 3 – new customer Has eyeballs as customers also Who loses? Akamai – revenue for leading & growing video customer Comcast – revenue from Akamai
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2) Level 3 requests more peering interconnects
Akamai loses T$ Comcast loses PP$ Level 3 freely peers the traffic Level 3 requests more interconnects
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2) Level 3 requests more peering interconnects
Akamai loses T$ Comcast loses PP$ Level 3 freely peers the traffic Level 3 requests more interconnects Comcast says No – you pay like AKAM&LLNW
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2) Level 3 requests more peering interconnects
Akamai loses T$ Comcast loses PP$ Level 3 freely peers the traffic Level 3 requests more interconnects Comcast says No – you pay like AKAM&LLNW Level 3 Acquiesces Level 3 pays paid peering fees to Comcast =Cap=ve Access Power Peering Comcast’s consistency hardens the Cap=ve Access Power play into a trend.
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3) Result & Observa=on
NetFlix
LimeLight Networks Comcast AkamaiPP
Level 3
PP$ $
millions of broadband homes
NetFlix NetFlix
Transit
$
PeeringPP
$
t
v
$
Comcast leverages peering to get $$ from all sides No alterna=ve to reach Comcast customers “Cap=ve” Customers Can’t peer around them Can’t choose compe=tor Exploi=ng Market power posi=on: Cap=ve Market Where is this going? Is this the right model?
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Last Break
Next Up:
The Internet Peering Playbook: The Art of Peering Aka
The Tricks of the Trade
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