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Peering BOF III

Peering BOF III. William B. Norton Co-Founder, Chief Technical Liaison Equinix Inc. <wbn@equinix.com>. NANOG 19 Washington, DC. Rough Agenda for Peering BOF III. 7:45 Introduction to the Peering Simulation Game: pick ISPs, Transit Providers, IXP Operator, rules 8:00 Play Simulation

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Peering BOF III

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  1. Peering BOF III William B. Norton Co-Founder, Chief Technical Liaison Equinix Inc. <wbn@equinix.com> NANOG 19 Washington, DC

  2. Rough Agenda for Peering BOF III 7:45 Introduction to the Peering Simulation Game: pick ISPs, Transit Providers, IXP Operator, rules 8:00 Play Simulation 8:50 Wrap up, post mortem 9:00 Adjourn to bar, meet Peering Coordinators To facilitate: • Green dots to ID as Company Peering Coordinator • White Paper: Peering Decision Tree • White Paper : Interconnection Strategies • Peering Contact Database exchange • Beer

  3. The Peering Simulation Game William B. Norton wbn@equinix.com

  4. Upstream Transit Provider 3 minute Intro to Peering Transit $$ ISP A Peering provides routes only to each others customers ISP B Transit $$ • Transit costs big bucks. • (But it is a convenient plug in the wall that says • “Internet  this way”) • 2) Peering costs very little and reduces transit costs. • 3) Q: Who to peer with and • how to justify costs of peering?

  5. A B C D Transit Provider X The Peering Game IXN X X IXW IXE Y Y IXS Transit Provider Y

  6. 3 Peering Simulation Game Rules • Goal: Maximize bank holdings. Make money by acquiring customers and reduce transit costs by peering • Play: Roll the dice and expand your network by selecting that many adjacent “squares” of customers Gain transit revenue of $2000 for each customer square you own Pay transit fees of $1000 for each square of traffic that other ISPs own 3. If at Exchange Point, two ISPs can negotiate peering: • $2000 recurring cost and loss of 2 turns, ISPs negotiates who covers the costs of peering • Peering ISPs do not have to pay transit for each others squares starting the next turn Quick round…

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

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

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

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

  11. Scoreboard after Round 1 • ISP A: $9,000 • ISP B: $0 • ISPC: $3,000 • ISPD: -$13,000 • On to Round 2

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

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

  14. Let’s play WELCOME TO BILLAND 4 ISPs that have never played before 2 transit providers that have played before 1 Exchange Point Operator that has played before Open Board $35,000 VC Funding We want to hear your thought process and peering negotiations Winner - prize

  15. Play Game

  16. Upstream Transit Provider Content Peering Transit $$ ISP A Peering provides routes only to each others customers (asymmetric traffic, true,… But, both companies benefit) Tier 1 Content Transit $$ • Transit costs big bucks. • (But it is a convenient plug in the wall that says • “Internet  this way”) • 2) Peering costs very little and reduces transit costs. • 3) Q: Who to peer with and • how to justify costs of peering?

  17. Content Peering Financial Model At Max: 100 Mbps@$1000/mo  $10/Mbps/mo 1000 Mbps@$2000/mo  $ 2/Mbps/mo Source: Qwest/L3 quotes for OC-3 Transit@$60K/mo=$388/Mbps/mo Equinix GigE Peering Package (LINX/AMS-IX similar)

  18. Beering BOF III Summary • Cost of peering insignificant relative to long term savings of transit costs • Peering Simulator vs. Peering Reality? • Peering Coordinators • Green Dot – Willing to talk peering • Double Green Dot – Willing to buy beer! • Peering Contact Database – your card w/AS# • White Papers Available (wbn@equinix.com) • “Interconnection Strategies for ISPs” • “Peering Decision Tree” • Soon: “Content Peering” • NANOG Survey Form – if you want Peering BOFs • Let’s talk over BEER(s)!

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