1. Do ATM-based Internet Exchanges Make Sense Anymore? William B. Norton Co-Founder & Chief Technical Liaison Equinix, Inc.

2. Internet Researcher Focused studies on ISP Peering 1.Identify Relevant Internet Operations Topic 2.Speak with prominent Peering Coordinators 3.Write/Evolve Draft White Paper 4.Walk Peering Coordinators through paper 5.Goto Step 3 ^Internet Service Providers and Peering Summary Findings of Peering Research….

3. Peering is a game of relationships

4. Today: Research Focus Many ISPs pulling out of MAE-East Why? “..Financial Reasons..” Apply “A Business Case for Peering” WP Result: “Do ATM-Based Internet Exchange Points Make Sense Anymore” white paper v1.5 ~200 ISPs have seen this research paper, ~50 Walk-throughs Data Points…

5. The Cost of Transit Variable based on usage ($/Mbps) Range: $350/Mbps down to $35/Mbps Greater volume = Lower unit price Observation: Over the last 4 years, Transit Prices have dropped like a rock. $1200/Mbps (AboveNet, 1998) now costs $120/Mbps (AT&T, 2002)

6. The Cost of Peering Observation: Transport Prices have dropped like a rock. Observation: New Router prices have dropped like a rock. Observation: Used Router Market is also very healthy (cheap). Apply these to peering at ATM IX…

7. ATM-based Peering Model Ethernet-based Peering Costs…

8. Ethernet-Based Peering Model When do each of these Peering Infrastructures make sense?

9. Peering Analysis Graph (axis)

10. Peering Analysis Graph (EPB) Definition: The Effective Peering Bandwidth is the maximum bandwidth available for peering, defined as the minimum of the available transport bandwidth and the usable bandwidth on the shared peering fabric.

11. Peering Analysis Graph (minCost) Definition: The Minimum Cost of Traffic Exchange is the unit cost of traffic exchange when the Effective Peering Bandwidth is fully utilized.

12. Peering Analysis Graph (EPR) Definition: The Effective Peering Range (EPR) is the range in which peering at an Internet Exchange makes sense (financially), measured as the range between the Peering Breakeven Point and the Effective Peering Bandwidth.

13. Q: Do ATM-based Internet Exchange Points Make Sense Anymore? Scenario 1: Medium Scale Peering –ATM-IX –Ethernet-based IX –Transit Scenario 2: Large Scale Peering –ATM-IX –Ethernet-based IX –Transit Medium Scale Peering

14. Assume: OC-3 into IX for Peering Assume: Transit Commit of 500Mbps Data Point: $125/Mbps Transit Price Assume: Used Cisco 7200 w/OC-3+FastE –Price=$9K*2, 36 month term=$500/month –Used Juniper M20 on eBay $14 Upgrade Peering when at 75% Avg. Util. Price Survey for ATM Peering

15. Peering at ATM/OC-3 IX Price Survey for FastE Peering

16. Peering at FastE/OC-3 IX OC-3 (155 Mbps) Router Fast Ethernet (100 Mbps) Eth Ethernet-based IX

17. Effective Peering Range Shown Graphically…

18. Effective Peering Range Summary…

19. Peering vs. Transit Large Scale Peering…

20. Large Scale Peering Assume: OC-12 into IX for Peering Assume: Transit Commit of ~900Mbps Data Point: $100/Mbps Transit Price Assume: New Juniper M5 w/OC-12+GigE –Price=$54K, 36 month term=~$1500/month –Used Juniper M40 on eBay $35 Upgrade Peering when at 75% Avg. Util. Price Survey for ATM Peering

21. Peering at ATM/OC-12 IX Ethernet-Based Peering

22. Peering at GigE/OC-12 IX OC-12 (622 Mbps) Router Cisco 7300 gigE Ethernet (1000 Mbps) Eth

23. Peering vs. Transit Effective Peering Range…

24. Effective Peering Range Graphically …

25. Effective Peering Range Effective Peering Range Gap…

26. Effective Peering Range Gap Do ATM-based IXes make sense?

27. Conclusion Today’s Economy (Inexpensive Equipment, Transit, Transport, Ethernet IXes) have conspired to make ATM-based IXes a low value proposition –ATM-based IXes make sense for a very narrow range –Ethernet-based Peering are always less expensive than ATM-based Peering Transit plays a key role in cost-effective traffic exchange (Ethernet Peering+Transit more cost effective than ATM Peering) “Do ATM-based Internet Exchange Points Make Sense Anymore?” Author’s Notes

28. Author’s Note Top 5 Reasons ISPs are Peering at ATM-IX 1.Haven’t done the math 2.Must peer with ATM Participant x not at Ethernet-based IX – don’t care what it costs 3.Contract Term yet to expire 4.“To be a player…” 5.Let sleeping dogs lie – changes in peering might trigger re-qualification request from peer. Acknowledgements…

29. Acknowledgements For this white paper I’d like to thank a few folks in particular for their review, insights, and comments on this paper: Dorian Kim (NTT/Verio), Ingrid Erkman (ICG), Dave McGaugh (ELI), Eric T. Bell (Time Warner Telecom), Chris Parker (StarNet), Lane Patterson (Equinix), Jay Adelson (Equinix), Morgan Snyder (Equinix), John Hardie (Equinix), David Diaz (BellSouth), Joe Wood (Accretive Networks), Robert Seastrom (inter.net), Kevin Epperson (Level3), Petri Helenius (FICIX), Scott Sheppard (BellSouth), Ralph Doncaster (iStop.com), Leo Bicknell (ufp.org), Paul Vixie (vix.com), Ian Somerton and Dave Wodelet (Shaw/BigPipe), Tony Hain (Cisco), Jeff S. Wheeler (five-elements.com), Cliff Hafen, Dory Liefer, Shannon Lake (Omnivergent), Nenad Trifunovic (WorldCom), Andre Gironda (eBay), Jeb Linton (EarthLink), Daniel Golding (SockEye), Peter Moyer (Juniper), and others that preferred no recognition for their contributions to this paper. Questions…

30. Questions? Copies of this research paper available via e-mail to wbn@equinix.com “Do ATM-based Internet Exchange Points Make Sense Anymore?” Other Resources Available…

31. Resources Available for Peering Coordinators Gigabit Peering Forums Other White Papers document Peering Practices Peering Contact Database

32. Gigabit Peering Forums

33. Other White Papers “Interconnection Strategies for ISPs” “Internet Service Providers and Peering” “A Business Case for Peering” “The Art of Peering: The Peering Playbook” “Do ATM-based Internet Exchange Points make sense anymore?” “The Peering Simulation Game” Freely available from the author: wbn@equinix.com

34. Peering Contact Database For Peering Coordinators Only Toss in your Business Card & Receive a copy of everyone’s Business Cards Every 6 weeks (or so) Managed as a community service. E-mail to wbnorton@wbnorton.org (Or give me your business card)