understanding remote peering - connecting to the core of the internet
DESCRIPTION
Understanding Remote Peering – The New Wave of Interconnection at the Core of the Internet. Using real-world case studies, this free webinar explains remote peering and what it means to ISPs, content providers and the global Internet peering ecosystem. Learn from William B. Norton who has presented three popular USTelecom webinars on Internet peering. Background The Internet peering ecosystem is going through a historic and rapid paradigm shift. The largest ISPs and content providers have always interconnected their networks at the core of the Internet using a technique called "Internet peering," the free and reciprocal exchange of access to each other's customers. In this way, networks of scale can exchange a large enough amount of traffic for free with one another to offset the cost of deployment (equipment, colocation, and transport to the colocation center). This justification is the basis for the business case for peering. However, a recent trend -- called "remote peering" -- has emerged as a way to get these peering benefits but without the cost of additional equipment, transport, or colocation. The remote peering model is where a remote peering provider delivers transport to the customer router with Virtual Local Area Network (VLAN) extension(s) from the largest exchange points in the world. In this way, the customer gets all of the benefits of peering (performance, control over routing, direct relationships with the peer networks, etc.) without the large initial capital and operational costs. This is not just a fringe or small change to peering - it is a fundamental shift in the Internet architecture. Remote peering is a new technique that helps make peering accessible to a much larger population. As a result of the cost shift, an increasing percentage of networks are peering across great distances. The peering paradigm of "peering keeps local traffic local" is no more. During the free webinar you will hear case studies from the field where medium-sized content companies are able to enter the peering ecosystem and connect to multiple Internet Exchange Points over a single circuit. These companies have graciously allowed their cost numbers to be shared so the traditional peering model can be compared against the emerging remote peering model. Also, the webinar will highlight the strongest arguments on both sides of the debate over whether remote peering is good or bad for the global Internet peering ecosystem. William B. Norton, Executive Director, DrPeering International and Author of the new 2014 Edition of “The Internet Peering Playbook: Connecting to the Core of the Internet” which includes a new chapter dedicated to remote peering.TRANSCRIPT
Understanding Remote Peering
William B. NortonChief Strategy Officer, IIX
Executive Director, DrPeering [email protected]@DrPeering.net
US Telecom WebinarLive from Silicon ValleyJuly 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 Transit2. Connecting to the Core: Internet Peering3. Connecting to the Core from afar: Remote Peering– Remote Peering Use Cases– Implications of Remote Peering
3 Internet Interconnection Techniques
Internet Transit…
1) INTERNET TRANSITConnecting to the Edge of the Internet
Internet Transit Service Model• 99.9% of all• Announce
Reachability• Metered
Service• Simple• “Internet
This Way”
795th percentile measurement
95th Percentile Billing Calculation• 5 minute samples• Month of deltas• 95th percentile• Max(in,out)
8Transit Prices Drop
Internet Price Declines (U.S.)
• “Can’t go lower”• “No one is making $”• Pricing varies widely• Trend unmistakable
9Internet Peering…
2) INTERNET PEERINGConnecting 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.
11
Internet Peering3 Key Points
1. Peering is not a transitive relationship2. Peering is not a perfect substitute3. Peering is typically settlement free
12
The Top 5 Motivations to Peer1. 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)
13Important Traffic is Peered
“Important Traffic is Peered”-- Andreas Sturm, DE-CIX
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
15Costs allocated across volume peered…Source: 2010 DE-CIX meeting, Frankfurt
Cost of Internet Peering
Cost of Peering allocated across the amountof traffic peered for free.
16Generalized 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.
17
We will use this graphto compare Transit, Peering and Remote Peering
Market Dynamics affecting these graphs…
Two Peering Market DynamicsPeering Cost Drops…but Transit Prices Drop Faster
18These two dynamics present a modern peering brick wall…
Some question if peering makes sense today…RP
3) REMOTE PEERINGConnecting to the Core of the Internet without additional network gear
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.
21Review the costs of the Traditional Peering Model…
Traditional PeeringPoint to Multipoint Peering Example
Colocation Expense
Router CapEx
…and Remote Peering…
Remote PeeringPoint to Multipoint Remote Peering Example
Peering FabricsExtended as VLANTo customer
No routerNo colo
Remote Peering Service Model…
Remote PeeringService Model
LondonInternetExchange
AmsterdamInternetExchange
GermanInternetExchange
Why it works…
Remote PeeringHow does it work?
Remote Peering Provider isalready installed atthe IXPs.
Waves provisioned,instant turn up.
Neutral RPPno business clash
Peering FocusSpeeds IXP deployLittle paperworkOne Contract
Peering FabricsExtended as VLANTo customer
No routerNo colo
RemotePeeringProviderNode
Case Studies and Use Cases
CASE STUDYFour site European Deployment
Traditional PeeringLinkedIn Case Study(NANOG 48 Peering BOF)
Colocation Expense
Router CapEx
Dublin
London
Frankfurt
AmsterdamSource: LinkedIn Spain (not shown)
$6K/mo
$3.5K/mo
$275K/mo
Peering FabricsExtended as VLANTo customer
No routerNo colo
Summary…
Remote PeeringLinkedIn Case Study(NANOG 48 Peering BOF)
$6K/mo
Dublin
London
Frankfurt
AmsterdamSpain (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 CASESWhat Remote Peering Means to the Internet Peering Ecosystem
For Content Companies
• Important Traffic is peered– Gold plated packets– Remote Peering simplifies– Remote Peering Delivers• Lower people cost• Strategic intent• Performance
• “End-User Performance”• A/B testing and “the blend”
Commodity Transit is cheap,but some applications requiremore control / better performance
Cable Companies…
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
Int’l Networks…
For Int’l Networks
• Remote peer into cheap ecosystem– Buy Transit– Peer Away
• 98% Africa traffic from US/Europe
NG Networks…
For NG Networking
• Blend Transit,• Strategic Internet
Traffic is remotely peered
• No capital costs• Control over routing
ISPs peer more…
For Internet Service Providers,Remote Peering justifiesbuilding into more andeven smallish regional IXPs.
More controls over routing
No Capital costs
IMPLICATIONS FOR THE INTERNET PEERING ECOSYSTEM
What Remote Peering Means to the Internet Peering Ecosystem
If there is time…
1) For all Network OperatorsRemote Peeringextends the life of peering
EffectivePeering 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 increasesthe value of IXPs
More new peers, more traffic, more routesMore Valuable IXPs
Colo->instant critical mass
3) For Colocation Centersthe Remote Peering Provider enablesinstant critical mass
ALL PEERING ROUTES ARE REACHABLE!
Reachable peersRemotelymakes colocation center immediately valuable (Value > Cost)
Trials and transition
4) For all, rapid turn-up means Remote Peering enables a fast deployment/transitionstrategy:
1. Remote Peering2. Full Network Deployment
Summary…
Summary Implications and Predictions
Remote Peering will accelerate existing colocation centers to critical mass, allowing them to become peering points andcommand a premium (~$2000/rack vs. $400/rack)
Many more colocation centers will then pop up, with massive power for high-densityVideo server deployments with immediately with access to peering critical mass.
Maybe 1000 peering points across the U.S. to handle massive volumes of video in the next few years.
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
• Send email to [email protected]– Subject: webinar book
• Amazon.com: $83.31
• IIX Sponsored: $9.99
• Ch12: Remote Peering – *FREE PDF* for review– [email protected]