Agenda for the Day Morning: Afternoon:

Transcription

1 Agenda for the Day Morning: Overview of Internet economic building blocks Afternoon: How to translate Internet growth into overall economic growth, follow-up on issues of interest, Q&A

2 TunIXP Workshop on IXPs April 29-30, 2013 Tunis Bill Woodcock Executive Director Packet Clearing House

3 ISP Lifecycle: Simple Aggregator Single Transit Provider IXPs ISP Network Customers

4 ISP Lifecycle: Redundancy and LCR Redundant Transit Providers IXPs ISP Network Customers

5 ISP Lifecycle: Local Peer Redundant Transit Providers IXPs ISP Network Single IXP Customers

6 ISP Lifecycle: Backbone Network Redundant Transit Providers IXPs ISP Network Multiple IXPs Customers

7 Hot Potato Routing Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

8 Hot Potato Routing Red Customer sends to Green Customer via Redundant Transit Providers Red NSP Network IXP Red NSP Redundant Transit Providers Green NSP Network Red Customer IXP Green Customer

9 Hot Potato Routing Red NSP delivers at nearest IXP Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

10 Hot Potato Routing Green NSP backhauls from distant IXP Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

11 Hot Potato Routing Green ISP delivers to Green Customer Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

12 Hot Potato Routing Green Customer replies via Green NSP Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

13 Hot Potato Routing Green NSP delivers at nearest IXP Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

14 Hot Potato Routing Red NSP backhauls from distant IXP Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

15 Hot Potato Routing Red NSP delivers to Red Customer Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

16 Hot Potato Routing Red Network is responsible for its own costs Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

17 Hot Potato Routing Green Network is responsible for its own costs Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

18 Hot Potato Routing Symmetry: Fair sharing of costs Redundant Transit Providers Redundant Transit Providers IXP Red NSP Network Red Customer IXP Green NSP Network Green Customer

19 The efficiency of the Internet depends upon this principle: For any two parties who wish to exchange traffic, there must be a pair of exchanges, one near each party.

20 The Corollary: Countries which haven t yet built Internet Exchange Points disadvantage themselves, and export capital to countries that already have.

21 Packet Clearing House Distribution of IXPs Half of all countries still have no IXP, while others have dozens.

22 Global Bandwidth Production 8T 7T 6G 5G 4T 3T 2T 1T

23 Bandwidth Production per IXP 1.25T 1T 750G 500G 250G

24 Number of IXPs

25 Number of IXPs About one every three weeks

26 Growth of IXP Physical Plant

27 Growth of IXP Physical Plant

28 Growth of IXP Physical Plant

29 Growth of IXP Physical Plant

30 Growth of IXP Physical Plant Building

31 Growth of IXP Physical Plant Building

32 Growth of IXP Physical Plant Building

33 Growth of IXP Physical Plant Building

34 Growth of IXP Physical Plant Building

35 Growth of IXP Physical Plant Building

36 Growth of IXP Physical Plant Building Building

37 Growth of IXP Physical Plant Building Building

38 Growth of IXP Physical Plant Building Building

39 Growth of IXP Physical Plant Building Building

40 Growth of IXP Physical Plant Building Building

41 Growth of IXP Physical Plant Building Building

42 Growth of IXP Physical Plant Building Building Building

43 Effect of an IX on Transit Purchase Sometimes people assume that the introduction of low-cost bandwidth from a local IX is a literal substitute for high-cost bandwidth from existing transit providers, and that this will result in a reduction of total costs. This is not true, and stems from trying to view ISP economics in terms other than APBDC and exponential growth.

44 Effect of an IX on Transit Purchase In fact, transit contracts tend to be constrained to fixed terms, are not subject to cost-effective early cancellation, and are time- and labor-intensive to initiate.

45 Effect of an IX on Transit Purchase 1gbps Unused capacity 55mbps International traffic 70mbps 155mbps Domestic traffic 30mbps Transit Bandwidth Prior to Domestic Peering

46 Effect of an IX on Transit Purchase 1gbps Unused capacity 85mbps Unused capacity 970mbps International traffic 70mbps 155mbps Transit Bandwidth After Domestic Peering Domestic traffic 30mbps

47 The Virtuous Cycle of Upgrades The Internet has doubled in size every ten and a half months for the past thirty years. Keeping up with this exponential growth is a process of addressing each revealed bottleneck and moving on to the next in a continuous virtuous cycle of upgrades, eventually returning to each bottleneck many times.

48 The Virtuous Cycle of Upgrades

49 Packet Clearing House The Virtuous Cycle of Upgrades Regulatory, Policy and Governance Critical Infrastructure International Cables Internet Exchange Point Local Loop National Backbone

50 Packet Clearing House The Virtuous Cycle of Upgrades Regulatory, Policy and Governance Critical Infrastructure International Cables Internet Exchange Point Local Loop National Backbone IXPs provide a domestic source of Internet bandwidth that is not dependent on International transit or transport.

51 Packet Clearing House The Virtuous Cycle of Upgrades Regulatory, Policy and Governance Critical Infrastructure International Cables Local loops (or last miles of copper, fiber, or wireless must be available to connect Local networks to Loop customers and resources like IXPs, critical National infrastructure, Backbone and international cables. Internet Exchange Point

52 Packet Clearing House The Virtuous Cycle of Upgrades Regulatory, Policy and Governance Critical Infrastructure International Cables Long-haul backbone fiber must be available to interconnect Local IXPs in one city with customers Loop in another. They form the web of circuits between National a country s Backbone cities. Internet Exchange Point

53 Packet Clearing House The Virtuous Cycle of Upgrades International Regulatory, cable systems Policy and must be Governance available for domestic ISPs to bring traffic Critical in from foreign Infrastructure IXPs, and for foreign ISPs to receive traffic International from domestic Cables IXPs. Internet Exchange Point Local Loop National Backbone

54 Packet Clearing House The Virtuous Cycle of Upgrades Critical Regulatory, infrastructure Policy and like root and Governance cctld nameservers, CERTs, and Critical law Infrastructure enforcement intercept must be speedy enough to keep International Cables up with the rest of the network. Internet Exchange Point Local Loop National Backbone

55 Packet Clearing House The Virtuous Cycle of Upgrades The public policy Regulatory, environment Policy and must support Governance and encourage new market entrants and Critical competition Infrastructure among existing players to ensure continuous price/ International Cables performance improvement. Internet Exchange Point Local Loop National Backbone

56 Packet Clearing House The Virtuous Cycle of Upgrades Regulatory, Policy and Governance Critical Infrastructure International Cables Internet Exchange Point Local Loop National Backbone...by which time we re ready to upgrade our IXP again. And so on, around the circle.

57 Interface Speeds Constrained Funding for optoelectronic physics basic research was withdrawn in the wake of the 2001 telecom investment collapse. There s a approximately four-year productization pipeline, so the effect became clear from about 2005 onward. 10,000,000 tbps 1,000,0001 tbps 115% annual exponential ,000 gbps 10 gbps 10,000 6 gbps / year linear 1 gbps 1, mbps mbps 10 1 Jan-92 Dec-93 Jan-96 Dec-97 Jan-00 Dec-01 Jan-04 Dec-05 Jan-08 Dec-09 Jan

58 Thanks, and Questions? Copies of this presentation are available in PDF format. Bill Woodcock Executive Director Packet Clearing House This presentation is by Packet Clearing House CC BY-NC-SA