1. Interconnection, Bandwidth and Datacenters “Water, water everywhere - And not a drop to drink.” Remco van Mook, Equinix SwiNOG, May 23. 2013

2. Remcos-MacBook-Pro:~remco$ whoami

3. Topics for Today Interconnection Markets The Bandwidth Challenge Datacenters: Equinix ZH5

4. NO, NOT JUST INTERNET EXCHANGES Act 1: Interconnection Markets

5. 5 The Price of Bandwidth, in bulk, per Mbps Western Europe, early-mid 2011 A EUR80 fiber cross connect: Internet Exchange traffic: Backbone traffic Western Europe: Transatlantic traffic, wholesale: Internet Transit, wholesale: Internet Transit, retail Broadband Internet, consumer: National Ethernet service: 3G mobile data, national: GSM voice call, national: 3G mobile data, roaming low: 3G mobile data, roaming high: GSM voice call, roaming: SMS Text Messages: SMS Text Messages, roaming: $0.01 $0.25* $0.50 $1 $2 $15 $50 $180 $11,400 $483,840 $834,000 $3,127,500 $3,338,496 $210,000,000 $1,166,400,000 Carrier Pigeon: $2500 (est)

6. 6 The New Price of Bandwidth, in bulk, per Mbps Western Europe, mid 2012 (based on 10Gbps) A EUR80 fiber cross connect: Internet Exchange traffic EU: Internet Exchange traffic US: Backbone traffic Western Europe: Transatlantic traffic, wholesale: Internet Transit, wholesale: $0.01 $0.18* $0.35* $0.15 $0.50 $0.65 Pain ahead!

7. 7 Definition time! A Healthy Interconnection market 1.Has sufficient critical mass to be self-perpetuating 2.Has at least a regional significance 3.Minimizes duplication of effort

8. 8 3 Basic Motivators Why does a network expand its footprint? 1.Increase Revenue 2.Reduce Cost 3.Improve Quality These decisions are made: 1.For different reasons, 2.By different people, 3.In different parts of an organisation.

9. 9 No seriously, where?

10. 10 No seriously, where? Take Frankfurt, for example:

11. 11 No seriously, where? Or Amsterdam:

12. 12 Why does it work?

13. 13 Consolidated effort You need: 1.Space, Power and Local Connectivity 2.Local/National eyeballs 3.Transport providers 4.National and International Content 5.Carriers 6.Foreign eyeballs To work TOGETHER to create a SINGLE interconnection zone

14. Act 2: The Bandwidth Challenge

15. 15 Cisco’s VNI – All IP Traffic

16. 16 AMS-IX Traffic over a 20 year period (2015 based on a CAGR of 40% and mid-2012 data)

17. 17 Evolution of Networking Standards (Planned) release dates of IETF Ethernet standards

18. 18 Hmm, that looks familiar… Those lines look the same! Besides, I recognise that 100,1000,10000,100000 series from somewhere… Let’s see those charts again on a logarithmic scale!

19. 19 AMS-IX Traffic over a 20 year period (2015 based on a CAGR of 40% and mid-2012 data)

20. 20 Evolution of Networking Standards (Planned) release dates of IETF Ethernet standards 2017! 400000

21. 21 As long as equipment performance keeps up… We now move to Andy Bechtolsheim, presenting at NANOG 55 “There is a big gap between the processes that are used for networking chips and the ones used for state of the art CPUs.” “ASIC designs are not on Moore’s Law.” “There is basically a bottleneck around I/O.”

22. 22 Oh, snap. To summarize, linear growth…

23. 23 Takeaways Traffic keeps growing exponentially Network hardware backplanes are not We need to get creative to solve this And rethink how we’re interconnecting the Internet

24. 24 Abridged history of Internet interconnection 1980sHey, it works! Early 1990sBuy my pipes! Late 1990sWanna Peer? Mid 2000sMine’s bigger than yours, go away. Late 2000sI’ll build my own, then. Mid 2010sWhy am I building this network again?

25. 25 “Why am I building this network again?” “Those damn users keep eating more bandwidth.” “I’m not getting paid enough.” “Forget about peering, I’ll just buy transit” “Let’s create a walled garden charge a premium for guaranteed access!” Eyeball Version

26. 26 “Why am I building this network again?” Off-net is the new hotness! For some content providers, over half of their traffic is served from inside eyeball networks, trending upwards… It helps to create walled gardens! This does not scale! Content Version

27. 27 A short explanation of a “Walled Garden” (Adult language version)

28. 28 This does not scale! Instead of ~20 locations to interconnect worldwide, we’re looking at over 200 deployments close to eyeball networks It doesn’t even work for a lot of things (interactive content, cloud) This sets a huge barrier to entry There is not enough physical infrastructure to support this!

29. Act 3: Equinix ZH5

30. Switzerland. The Secure Heart of Europe. ZH5. 30 6.5 km Dark Fiber between ZH5 and ZH4 for the price of a Cross Connect Dual Site Strategy for CHF 120.- MRR connectivity cost Facts & Figures 1.IBX+ 2.Leed Gold Standard 3.ISO 9001 and ISO 27001 4.80+ carriers 5.6‘680 m2 colocation area 6.14 MVA power 7.Biggest IT Ecosystem in Switzerland 8.High carrier density, 80+ Carriers 9.Located in the economical and business center of Switzerland 10.Scalability - power and space wise

31. Equinix Switzerland – Datacenters. 31 CityDCSpaceOpening ZurichZH1540 m 2 1998 ZH2373 m 2 2004 ZH3230 m 2 2006 ZH41100 m 2 2010 ZH56680 m 2 2013 GenevaGV12060 m 2 2000 GV22500 m 2 2009 Established 1998 (Telehaus -> iXEurope -> Equinix) ISO 9001 and 27001 certified Redundancy of equipment N+1 Carrier-neutral Facilities

32. 32 Switzerland. The Secure Heart of Europe. Questions? remco@equinix.com