Netnod Spring Meeting 2011 Stockholm, Sweden Wouter … at EDPnet... · Wouter Van Renterghem – Carrier Relations ... the benefits of peering are better network ... " Wouter Van

Netnod Spring Meeting 2011 Stockholm, Sweden

Wouter Van Renterghem – Carrier Relations Europe & USA

Netnod Spring Meeting 2011



Peering

Do we all still need peering ?


Edpnet in a nutshell

• Independent Belgian telecom provider with a real passion for technology

• Specialized in affordable high-capacity connections in Europe, Russia and the USA

• Portfolio : • internet connectivity, • data transfer, • telephony and • datacenter solutions

for residential and professional customers and large organizations.


Edpnet’s transcontinental optical network

• Fully redundant, stretching 3 continents • Based on the latest DWDM technology • Fully redundant POPs • Perfect platform to communicate in real-time with customers

and partners around the world.

Our ambition

• To make life for organizations and individuals easier


• Products Wholesale = Transit, Last Mile, Point-to-Point, Collocation and Voice

• Focus = Europe, Russia and USA • Group: 90 Employees • Announces ~ 216 v4 and ~3 v6 Prefixes • Peering traffic: ~85% • AS9031


List of all known Peering locations in Europe


~140 Peering Points


Why Peering in general?

• Quality (keep control) • Price (Att: can be more expensive than transit, extra NOC engineers

to manage peers, …) • More Traffic if you have multihomed customers (shorter AS Paths)


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Backhauling

Peering

Transit Prices in the Market are seen starting from €1/Mbps (e.g. edpnet, ...)

10 gig Netnod port: 2208 € / month 10 gig backhauling: 917 € / month

Price per Mbit (10 Gig flat Port)


Still peering interested ?

you should be! …..


Q: what is the perfect strategy? A: What is your Demand ?


Q: what Peering Exchange to join? A: What is your Demand ?

Each IX has it´s Market Position: • some are free, most others have an MRC • geo-focus: regional, national, global • language-focus: german, french, spanish… • user-types: eyeball, content or mixed

So the Answer is: what are you searching for ?


Peering GEO-Optimization


Q: which Transit should I take? A: What is your Demand ?

some important rules: • don´t trust your friends’ opinion • don´t trust the marketing and sales guys • don´t trust the homepages or pdf/ppt

see here some examples:


Cont.: which Transit should I take?

typical sales statement #1: “we dug all the way to … we laid our own fiber… we control all…”

the reality: no they often haven't – they leased or bought a fiber pair like most others from the few who really dug and control it.


typical sales statements #2: “we are a tier-1…”

…no they aren´t – marketing wish mixed with reality.



typical sales statements #3: “we are one of the best peered networks…”

… says the sales guy who’s NOC in the meantime is denying all peering requests and sending transit offers instead



“we are the best ip provider … because we are connected to ams-ix, de-cix, netnod, …

…but: have you analysed their peering strategy? do 3 out of 100 possible peerings really count as connected? is 30 Mbps peering traffic for a global tier-1/2 network normal ?



Transit Carriers well known Problem Summary:

• long path via far away Linx, Amsix, DECIX… • bad reach of small and medium Networks • peer eastern networks on western IX´s • presenting of inner-EU path´s via US Hubs • fighting peering wars…

so how can you solve this ?...


the Solution to keep Quality high, is…

… Peering


Who should Peer?

Everyone ! (I thought so )


What do you think would happen if transit pricing = peering pricing?

(Some feedback from the market)


Some thoughts …

... transit is already cheaper than peering. Only a few carriers can justify the cost of peering because of the amount of throughput. At low traffic throughput, peering is not cost effective. However, the benefits of peering are better network performance and control ...


… in Latvia (and other smaller countries) you cannot subscribe to international peering. International connectivity is provided by large local ISPs. It is cheaper to buy transit than to buy a connectivity to any city outside the country in order to peer with somebody.


And how will this effect:


• Peering Exchanges

• Transit providers

• Your network design

• small ISP's <-> large ISP's


… they will be replaced by free provider initiatives (e.g. swissix) …


… ix´s will become more and more a sponsored basic infrastructure that’s run by datacenter owners like equinix exchange , ...

... the big 3 (de-cix, amsix, linx) will not run into trouble quickly ... But some pressure will be put on medium sized commercial ix’s that are trying to be more than only a national ix. ...

... Connections will concentrate to the big ones - de-cix for example - substitute all smaller medium ix´es against one big decix pipe...

... the side effect is, that quality will go down and round trip times will go up. but that’s normal... if you pay peanuts you “mostly” get monkeys - if you pay quality you “mostly” get quality!


… only companies large enough to justify a peering connection for increased resilience and shorter paths would connect, so that would mean fewer customers …


… peering exchanges will be the least effected ones as they always provided the neutral exchange of content between networks and will continue to do so. They might even see an increase in peering partners as transit providers will not be able to deliver the Transit to their clients’ location as transport cost outweighs Transit revenues …


• Transit Providers

… maybe quality transit with good coverings of the "reduced to national" ix´s will be a niche market with customers for this product …

… what about the idea of end up in three super-transit carriers: 1. dtag-telia-kpn-edpnet-telefonica against 2. att-level3-gblx-cogent against 3. chinatelecom-tata-flag-reliance => good for the customer? good for the market ? good for the quality ?

… more traffic and less revenue ...


• Transit Providers

… they cannot maintain revenues and gross margins as they will not be able to ramp up volumes to compensate for the price decline/Mbps. Transit quality will drop due to increased contention ratios on network, ultimately leading to consolidation and bankrupcies ...


• Your network design

… Carrier Ethernet will play an important role on that, because: 1. Low cost transport and efficient network architecture; 2. Not affected by the price situation of ip 3. …

… for local providers, the local backbone is more important. They will keep relying on their peers for increased network reliability …


• small ISP's <-> large ISP's

… There will be new small ISP's that only use transit to provide Internet to their customers. I don't think larger ISP's will be affected except by the higher amount of traffic …

… lower volume will not be disadvantageous anymore for smaller ISP's as they can buy at allmost the same rates as large ones but could be discriminated on the peering front …

… for larger ISP's peering makes sense for network quality and economic reasons, for smaller ISP's peering makes sense for economic reasons only, so the only ones likely to change their strategy are small ISP's …


We know you’ve got questions


Thanks for your attention !



Contact us (or meet us at the bar!) :

" Peter-Paul Engelen – Vice President of Operations USA

" Andrey Ermurak – Head Of Business Development Russia & Nordics

" Wouter Van Renterghem – Carrier Relations Europe & USA

E-mail: [email protected] Web: www.edpnet.net

AS9031

Documents

Netnod Spring Meeting 2011 Stockholm, Sweden Wouter … at EDPnet... · Wouter Van Renterghem – Carrier Relations ... the benefits of peering are better network ... " Wouter Van