Peering Decision Tree. William B. Norton Co-Founder, Chief Technical Liaison

Transcription

1 Peering Decision Tree William. Norton o-founder, hief Technical Liaison

2 Definitions of Peering and Transit Def: Peering is the business relationship whereby ISPs reciprocally announce reachability to each others transit customers. Peering Peering WestNet USNet EastNet Transit Routing Table Transit Transit Def: Transit is the business relationship whereby one ISP sells access to all destinations in its routing table. 2

3 Example: Peering and Transit Transit ompnet Transit Transit WestNet Peering USNet EastNet Peering Peering Transit 3

4 European Peering Study Transit $$$ Partial Transit $$ Paid Peering $ Peering -$ Usage-based motivation More work to be done here 4

5 Peering Decision Tree Paper ased on Interviews with 50+ ISP Peering oordinators, Validated at NANOG & LINX meetings 3 General Phases of Peering: 1) Identification of Potential Peer 2) Initial ontact and Qualification 3) Implementation Discussions Paper available upon request: wbn@equinix.com With Peering White Paper in Subject 5

6 I. Phase 1: Identification of Peer: Traffic Engineering Data ollection and Analysis Motivations for peering: Financial: Reduce load on expensive Transit service Traffic src/dest Measure vs Intuit Usage-based illing Engineering: Lower latency Result Top 10 list ISP A Transit $$$ Seek interconnection Transit ISP Part of larger business deal Transition Strategy ISP Transit $$$ 6

7 ase Study: Flawed Tier 1 Migration Strategy Step 1: uy Transit, Market Services Step 2: uild your own infrastructure, establish Peering to Reduce Transit Step 3: onvert paid Transit into free Peering Step 3 difficult. War stories ISP A Transit $$$ ISP Transit $$$ Transit ISP 7

8 Phase 1: Identification of Potential Peer Phase 1 Dominant Traffic Flow? Large New ustomer Impact expected? Part of a larger business Transaction? Traffic transiting expensive transit service? Will Peering Have a positive affect on my network? Proceed to Phase 2 8

9 II. Phase 2: ontact & Qualification Initial Peering Discussion The most difficult thing How to make contact with potential peer ISP? person or Exchange point participant list Tech-c/admin-c from DNS/ASN registries Engineering Forums NANOG, IETF, RIPE, etc. T rade shows: speakers and booth staff Target ISP sales force Target ISP NO 9

10 Peering ontact Database Initiated at NANOG 17 : Get me your card Handwrite: Peering To: peering@<ispdomain>.net if avail Handwrite: AS Number ross out stuff you don t want in spreadsheet This process ISPs Will Peer I Peering ontact Database to all ~monthly Peering White Paper? Write PWP on card or wbn@equinix.com 10

11 II. Phase 2: ontact & Qualification, Initial Peering Discussion Once contact is made Sometimes Mutual NDA Exchange ilateral Peering Agreement (LPA) Traffic Data justification shared One basis: Peering iff Peeringost < TransitSavings? Requirements Exchange (e.g. Must be at n Public Peering Points, xmbps, private peering migration strategy, etc.) Either Party may walk away.. If still interested, implementation discussion 11

12 Phase 2: ontact and Qualification Phase 2 ontact with Peering@ or personal ontact? ontact with Exchange Point contact List? ontact Using DNS/ASN Registry? ontact at Operations Forums? ontact at Trade Shows? ontact via Sales Force? ontacts within the broader business Transaction? (optionally) Sign NDA Share traffic statistics, Policies, LPA, I.e. justification why they should both peer End Peering Discussion No Do both parties find motivation to continue peering discussion? Proceed to Phase 3 12

13 III. Phase 3: Implementation Discussions How to interconnect? Direct ircuit-based Interconnection VS. Exchange-ased Interconnection White Paper available: Interconnection Strategies for ISPs request to: 13

14 ost omparison at n=5 S S S S O-12 S costdfn()=(n-1)*/2 $11,400 n=5 costd=(4)*$11,400/2 costd=$22,800/mo G G G U U U A A A G U A O-12 O-12 O-12 G U A O-12 costexchfn()=d+(n-1)*x/2+racks $23,000 n=5, 1 Rack@$1500 costexch=$23,000+(4)(200/2)+$1500 costexch=$24,900/mo More expensive to use Exchange-ased Interconnection Strategy at n=5. N>5? 14

15 Exchange-based vs. Direct ircuit Interconnection ost omparison of Interconnection Strategies Monthly ost of Interconnection $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Direct ircuits Model MUX ig Pipes Model Dark Fiber Model $ # of participants For Interconnection Strategies for ISPs wbn@equinix.com See for slides 15

16 9 Exchange Selection riteria Telecommunications Access Issues Deployment Issues (getting in & up) ISP urrent Presences (there yet?) Operations Issues (restrictions?) usiness Issues (neutrality/alignment) ost Issues ($$) redibility Issue (backing,attraction) Exchange Population (side effect) Existing vs. Emerging Exchange? Exchange 16

17 VExchange Value of the Internet Exchange Vapacity ost Of oming In (ircuits+ Routers+ StaffTime) First arrier(s) First ISP(s) First P(s) Large Facility Scaling ritical Mass Point (Vexchange=ostExchange) The Exchange Startup Hump NParticipants 17

18 Phase 3: Exchange riteria Telecom Access Issues Deployment Issues ISP urrent Presences Operations Issues usiness Issues ost Issues redibility Issues Exchange Population Issues Existing v. Emerging Exchange Issues Fiber Vendors in exchange? Multiple arriers? Deploy +Install gear easy? No No Are We in there? Add 1 to score Are they in? PNIs Allowed? Security Meets Req s? Scales Well? Does Participation Support ompetitor? Is the total cost In line With the enefits? Does This exchange Have the financial backing To survive? Does This exchange Have the credibility To bring in attractive ISP Peers? Are there Others there That I d Like to Peer with? Does Exchange exist today? Add 1 to score Add 1 to score Weigh Telecom Access Weigh Deployment Weigh urrent Presences Weigh Operations Issues Weigh usiness Issues Weigh ost Issues Weigh redibility Weigh Exchange Population Weigh Existing v. Emerging 18

19 IV. Summary Findings from Interviews Three phases to peering: 1) Identification of Potential Peers 2) ontact & Qualification 3) Implementation Discussions 9 Selection riteria for Exchanges (Vary in relative weighting of criteria) 19

20 Thanks to! Thanks to those who helped with the latest draft (1.3): Ren Nowlin (Onyx), Joe Payne (IX), Dave Diaz (NetRail), Jake Khuon (Frontier Globalenter), Patricia Taylor-Dolan (Level 3 ommunications), athy Wittbrodt (Excite@Home), John urran (NextLink), Jeff Rizzo and Dan Gisi (Equinix), Tom Ryan (NewEdge), Alex ligh (GX Network), Steve Meuse (GTE), Keith Mitchell (LINX), Aaron Dudek (Sprint), Waqar Kahn (Qwest), rian Dickson (TeleGlobe) 20

21 Web Farm Traffic Asymetry Whose resources are consumed as a result of peering? EXODUS Peering Small Web Request GTEI Generates Large Web Response 21

22 Transit Provider X A The Peering Game IXN X IXW Y IXE X Y Transit Provider Y IXS D 22

23 The Peering Simulation Game Rules Goal: Maximize bank holdings. Make money by acquiring customers by expanding ISP network and reduce transit costs by peering Play: select a card and expand your network by selecting that many adjacent squares of regional customers Gain transit revenue of $2000 for each customer square Pay transit cost of $1000 for each square of traffic that other ISPs own If at Exchange Point, two ISPs can negotiate peering: $2000 recurring cost and loss of 2 turns, ISPs negotiate cost sharing Peering ISPs do not have to pay transit for each others squares 23

24 Transit Provider X A A A A A A IXN X IXW Y A rolls 5, Wants to peer w/ moves to IXN Pays Transit on others squares (3*$1000) Receives revenue on 6 squares (6*$2000) $12,000 - $3,000 = $9,000 IXE X Y IXS D Transit Provider Y 24

25 Transit Provider X A A X IXW Y A A A A IXN A rolls rolls 5, 3, Going to IXE Pays Transit on others squares (3*$1000) Receives Pays Transit revenue on others on 6 squares (6*$2000) (8*$1000) Receives $12,000 revenue - $3,000 on 4 squares = $9,000(4*$2000) $8,000 - $8,000 = $0 X IXE Y Transit Provider Y IXS D 25

26 Transit Provider X A A A A A IXN A X IXW Y Transit Provider Y A rolls rolls rolls 5, 3, 6, an an get to get IXW, to IXE likes IXS Pays Transit on others squares (3*$1000) Receives Pays Transit revenue on others on 6 squares (6*$2000) (8*$1000) Pays $12,000 Transit on Receives revenue - $3,000 others on 4 squares = squares $9,000(11*$1000) (4*$2000) Receives revenue on 7 squares (7*$2000) $8,000 - $8,000 = $0 $14,000 - $11,000 = $3,000 IXS X IXE Y D 26

27 Transit Provider X A A A A A IXN A X IXW Y Transit Provider Y A rolls rolls 5, 3, an get D rolls rolls 6, an get to to IXW, IXE 1, Late entrant heading IXS to IXE Pays Transit on others squares (3*$1000) Receives Pays Transit revenue on others on 6 squares (6*$2000) (8*$1000) Pays $12,000 Transit on Receives revenue - $3,000 others on 4 = squares $9,000(11*$1000) Pays Transit on others squares (4*$2000) (17*$1000) Receives revenue on 4 squares (7*$2000) Receives $8,000 revenue - $8,000 on 2 squares = $0 (2*$2000) $14,000 $11,000 $3,000 $4,000 - $17,000 = -$13,000 IXS X IXE Y D D 27

28 Scoreboard after Round 1 ISP A: $9,000 ISP : $0 ISP: $3,000 ISPD: -$13,000 On to Round 2 28

29 Transit Provider X A A A A XA IXW Y Transit Provider Y A A A A IXN A rolls rolls rolls A 5, rolls 3, 6, 3, an an get Attaches get D rolls to to IXW, IXE to 1, IXW Late entrant heading IXS to IXE Pays Transit on others squares (3*$1000) Receives Pays Transit revenue on others on 6 squares (6*$2000) (8*$1000) Pays Pays $12,000 Transit Transit on Receives revenue - $3,000 others on others on 4 = squares squares $9,000(11*$1000) (13*$1000) Pays (4*$2000) Receives Receives Transit revenue revenue on others on 4 on squares squares 9 squares (17*$1000) (7*$2000) (9*$2000) Receives $8,000 revenue - $8,000 on 4 squares = $0 (2*$2000) $14,000 $18,000 $11,000 - $13,000 $3,000 = $5,000 Wants $2,000 to - peer $17,000 with = -$15,000 split costs? YES: -$1,000 + both lose a turn Neither has to pay transit to each other! IXS X IXE Y D D 29

30 Transit Provider X A Position 9 Revenue A A squares A A A IXN A1 lost turn Peering w/ reduced A cost $8000/turn A XA IXW Y Transit Provider Y A rolls rolls rolls A 5, rolls 3, 6, 2, 6, an an Attaches get get D rolls to to IXW, IXE to to 1, IXE*IXN IXW Late entrant heading IXS to IXE Pays Transit on others squares (3*$1000) Receives Pays Transit revenue on others on 6 squares (6*$2000) (8*$1000) Pays Pays $12,000 Transit Transit on Receives revenue - $3,000 others on on others on 4 = squares squares $9,000(11*$1000) (13*$1000) (21*$1000) Pays (4*$2000) Receives Receives Transit on others squares (17*$1000) revenue revenue on 4 on squares 810 squares (7*$2000) (8*$2000) (10*$2000) Receives $8,000 revenue - $8,000 on 4 squares = $0 (2*$2000) $14,000 $16,000 $20,000 $11, $13,000 $21,000 $3,000 = = $3,000 -$1,000 $2,000 Wants to to - peer $17,000 peer with with = -$15,000 A split split costs? YES: NO: -$1,000 You both pissed lose me a off, turn Neither : has if to $0 pay & transit lose to both each turns other oth walk away IXS X IXE Y D D 30