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APRICOT 2007 Peering Tutorial

Join the Peering Tutorial at APNIC to learn about the definitions and motivations behind peering, as well as the dynamics of the peering ecosystem. Gain insights from industry experts and explore the benefits of peering relationships.

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APRICOT 2007 Peering Tutorial

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  1. APRICOT 2007 Peering Tutorial Instructor: William B. Norton Co-Founder & Chief Technical Liaison Equinix, Inc. wbn@equinix.com Orchid Room Bali, Indonesia

  2. Agenda • 9:15 – 10:30 Introduction to Peering – Definitions, Applying the definitions – Motivations to peer or not • 10:30-11:00 Break • 11:00-12:30 Peering Simulation Game

  3. Internet Researcher • EQIX: Carrier Neutral Colocation • 90% Externally Focuses • Observe: documentation on HW&Protocols • Lack of Operations documentation • Research How does Peering work? White paper process..

  4. Community Operations Research • Ground Truth w/dozens of experts • Write White Paper v0.1 • Walk community through WP for comments • Revise White Paper into new version • Present White Paper at conferences • Solicit comments over lunches and dinners White papers so far…

  5. Internet Operations White Papers 1) “Interconnection Strategies for ISPs” 2) “Internet Service Providers and Peering” 3) “A Business Case for Peering” 4) “The Art of Peering: The Peering Playbook” 5) “The Peering Simulation Game” 6) “Do ATM-based Internet Exchanges Make Sense Anymore?” 7) “Evolution of the U.S. Peering Ecosystem” 8) “The Asia Pacific Internet Peering Guidebook” 9) “The Folly of Peering Traffic Ratios?” 10) “Internet Video: The Next Wave of Disruption” Freely available. See Web site or send e-mail to wbn@equinix.com Start at the most basic definitions

  6. Definitions of Peering Take Notes

  7. The Internet is a Network of Networks. Def: Transit …must itself get attached to someone who is already attached to the Internet. 1)Transit Provider sells metered access to the An ISP sells access to the Internet, so… Global Internet Transit Provider A $ meter Transit Provider B

  8. 2) Peering is a business relationship whereby two companies RECIPRICALLY exchange access to each others customers. Def: Peering Why Peer? 1. Reduce Transit Costs 2. Lower Latency 3. More Control over Traffic Transit Provider A Peering Transit Provider B

  9. What is this Internet Peering Ecosystem anyway? Global Internet Peering Ecosystem JP Internet Region AU Internet Region US Internet Region Tier 1 ISPs Tier 2 ISPs Content Providers Characteristics of these Ecosystem Organisms?

  10. Ecosystem Member: Tier 1 ISP P Def: A Tier 1 ISP is an ISP that has access to the ENTIRE Internet Region Routing Table Solely via Peering Relationships P Tier 1 ISP $ $ … T T (Doesn’t buy transit from anyone to reach any destination in the Internet Region.) Motivation: Is NOT motivated to Peer in region to reduce transit fees, Is NOT motivated to peer with anybody else. Behavior: “Restrictive” Peering Policy

  11. $ $ Ecosystem Member: Tier 2 ISP T T … P Def: A Tier 2 ISP is an ISP that has to purchase Transit to access some part of the Internet Region. P Tier 2 ISP $ $ … T T Motivation: Is motivated to Peer in region to reduce transit fees. Behavior: “Open” Peering or “Selective” Peering Policy Active in Peering Forums

  12. $ $ Content Providers T T … Def: A Content Provider focuses on content development and does not Sell access to the Internet. Content Provider Motivation: SLAs w/well known ISP Behavior: “No Peering” Policy

  13. Generic Peering Ecosystem Tier 1 ISPs $ flow up T T T T TT T T T Tier 2 ISPs T T T Active Peering Groups Peering Forums IX Meetings Content Providers Test: Apply defs…

  14. Quiz 2) Definition of Peering: ________________ • Draw: – Piece of paper Tier 1 ISP X P Tier 1 ISP Y $ $ T T 1) Definition of Transit: ________________ Tier 2 ISP B Tier 2 ISP A $ T Content Provider C 3) Definition of an “Open” Peering Policy: _____________________ 4) Definition of a “Selective” Peering Policy: _____________________ 5) Definition of a “Restrictive” Peering Policy: ____________________

  15. Apply Defs: Peering Dynamics & Motivations Tier 1 ISP X P Tier 1 ISP Y $ P? $ T No, like $. P? T No, like $, P? & I Like customer Tier 2 ISP Tier 2 ISP $ B T Content Provider No, I already hear your routes for FREE! Synch Point: You have all the defs needed to predict behavior in the Peering Ecosystem. You should be able to answer the question at hand.

  16. Why Telstra Won’t Peer in Australia?

  17. Why Telstra Won’t Peer in Australia? That’s right. They don’t have to.

  18. Why Telstra Won’t Peer in Australia? They don’t have to. And, No different from other Tier 1’s in the world Let’s look at the evolution of another Peering Ecosystem…

  19. U.S. Evolution #1 Cable Companies Peer T1 ISPs Evolution #1 Significant Evolution… 1) Volume of traffic is huge 2) Cable Cos Open Peering 3) “Kazaa Effect” amplifies peering benefits T2 ISPs Content

  20. U.S. Evolution #2 Large Scale Content Players Peer T1 ISPs Significant Evolution… 1) Volume of traffic is huge 2) Content is Open Peering 3) Improves End-User Experience 4) Leading Players are paving the way T2 ISPs T2 ISPs Content Content …need to move out of Bankrupt colo anyway…

  21. U.S. Evolution #3 Cable Cos Peer w/Large Scale Content Players T1 ISPs Significant Evolution… 1) Volume of traffic pulled away from T1s is huge 2) Reduces perceived need for T1s (for local delivery anyway) 3) T1s still needed for distance T2 ISPs T2 ISPs T2 ISPs Content Content Content Content Literally right on the Cable Company Network

  22. The Process of Peering

  23. Peering Decision Tree: 3 Phases of Peering Agreed on Terminology Then the Interviews with Peering Coordinators and the 3 Phases of Peering: 1) Identification or Potential Peer – the who 2) Initial Contact and Qualification – the why 3) Implementation Discussions – the how

  24. What does Internet Transit Cost? Transit Price Commit to 1 mbps $100 per mbps Commit to 5 mbps $80 per mbps Commit to 15 mbps $70 per mbps Commit to 25 mbps $50 per mbps Min/month $100 $400 $1,050 $1,250 Transit Cost Model $120 $100 $80 $/mbps $60 TransitPrice $40 $20 $0 1 5 9 13 17 21 25 29 33 37 41 45 Mbps Exchanged Motivations

  25. Why Peer? Motivations for Peering • Financial: Reduce load on expensive Transit service • Traffic src/dest • Measure vs Intuit • Usage-based Billing • Engineering: Lower latency Transit $$$ ISP A Seek transport Interconnection $ x Transit ISP ISP B Transit $$$ • 1stStage of Peering: •  Top 10 destination ISP list Top 10 list

  26. Sample Top 10 Destination List Internet Service Provider A Make Web-Based Lookup Table AS Number Mbps Destination ISP 6172 24.35 HOME-NET-1 701 8.90 ALTERNET-AS 1668 8.14 AOL-PRIMEHOST 4766 7.08 APNIC-AS-BLOCK 3320 5.12 RIPE-ASNBLOCK4 577 4.24 BACOM 6327 3.90 SHAWFIBER 1 3.89 BBNPLANET 7018 3.66 ATT-INTERNET4 9318 3.13 APNIC-AS-3-BLOCK 5769 2.67 VIDEOTRON 6830 2.30 HCSNET-ASNBLK 9277 2.22 APNIC-AS-3-BLOCK 10994 2.08 TAMPA2-TWC-5 1239 2.05 SprintLink Contact [HOME-NOC-ARIN] [IE8-ARIN] [AOL-NOC-ARIN] [SA90-ARIN] [RIPE-NCC-ARIN] [EQ-ARIN] [IAS-ARIN] [CS15-ARIN] [JB3310-ARIN] [SA90-ARIN] [NAV1-ARIN] [MD205-ARIN] [SA90-ARIN] [JD6-ARIN] [SPRINT-NOC-ARIN] Def: Peering

  27. I. Phase 1: Identification of Peer: Traffic Engineering Data Collection and Analysis • Reduce load on expensive Transit service • Traffic src/dest • Measure or Intuit Seek interconnection Transit $$ ISP A Transit ISP ISP B Transit $$ • ResultTop 10 list • 2ndGoal: Lower latency

  28. Part of Broad Business Relationship? Large new customer impact? Dominant Traffic Flow? Yes Phase 1: Identification of Potential Peer Traversing Expensive Transit Circuit? Yes Yes Will Peering have a positive affect on my network? Yes Yes Proceed to Phase 2: Contact Peer

  29. II. Phase 2: Contact & Qualification, Initial Peering Discussion A) Part of broader business transaction? a) E-mail person or peering@<ispdomain>.net b) Exchange point participant list c) Tech-c/admin-c from DNS/ASN registries d) Engineering Forums NANOG, IETF, RIPE, etc. e) Trade shows: speakers and booth staff f) Target ISP sales force g) Target ISP NOC

  30. II. Phase 2: Contact & Qualification, Initial Peering Discussion • Mutual NDA • BiLateral Peering Agreement (BLPA) • Traffic Value Data shared – One basis: PeeringCost<TransitSavings? • Requirements Exchange – (e.g. Must be at n Public Peering Points) • Either Party may walk away…..

  31. Finding the Right Contact tech-c or admin-c in DNS/ ASN Registry peering @ or personal contact Larger Business Transaction Exchange Point Contact list Operations Forum Trade Shows Sales Force Phase 2: Contact and Qualificatio n Initial Contact Sign NDA, see policies Share traffic data, BLPA Do both parties find motivation to continue peering discussion? No Yes Proceed to Phase 3: Implementati on Discussion Close discussion

  32. III. Phase 3: Implementation Discussions How to interconnect? Direct Circuit-based Interconnection Vs Exchange-Based Interconnection White Paper available: “Interconnection Strategies for ISPs” Email to: <wbn@equinix.com>

  33. Exchange-based vs. Direct Circuit Interconnection Cost Comparison of Interconnection Strategies $400,000 Direct Circuits Model $350,000 Monthly Cost of Interconnection $300,000 MUX Big Pipes Model $250,000 $200,000 Dark Fiber Model $150,000 $100,000 $50,000 $- 1 4 7 10 13 16 19 22 25 28 # of participants 31 34 37 40 43 46 49 52 55 58 61 64 See http://www.nanog.org/mtg-9905/norton.html for slides

  34. Exchange Selection Criteria Criteria Includes: • Telecommunications Access Issues • Deployment Issues (getting in & up) • ISP Current Presences (there yet?) • Operations Issues (restrictions?) • Business Issues (neutrality/alignment) • Cost Issues ($$) • Credibility Issue (backing,attraction) • Exchange Population (side effect) • Existing Exchange vs. New Exchange? Facilities Allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Facility fills Facility becomes widely known Critical mass is achieved Bulk selling of rack 10-packs Cross connect revenue grows rapidly Large Facility Scaling First Carrier First ISP(s) First CP(s) Secondary Carrier(s) Multiple ISPs provide CP redundancy “The Startup Hump” Time

  35. Exchange Environment Evaluation Exchange Environment Selection Criteria Telecom Access Issues Business Issues Cost Issues Credibility Issues Operations Issues Exchange Population Existing vs. Emerging Deployment Issues ISP Current Presences Peering Implementation and Operation

  36. IV. Summary • Findings from Interviews: Several phases lead to peering: 1) Identification of Potential Peers 2) Contact & Qualification 3) Implementation Discussions (Vary in rigor and policy) • 9 Selection Criteria for Exchanges (Vary in relative weighting of criteria)

  37. Peering Decision Tree Traffic Engineering Data Collection and Analysis Where is traffic destined? Where is it handed off in a peering or transit relationship? How will traffic on my backbone change as a result of regional peering? If beneficial to peer, where to peer? Yes Mostly e-mail/phone, conversations Sign mutual NDAs Peering Criteria met? If not, reestablish contact when criteria met. Discuss benefits to each of peering based on traffic data (MRTG Weekly MBps Avg) Does each side benefit equally? Peering Poker. Peering Negotiation Yes "Interconnection Strageties for ISPs" http://www.nanog.org/mtg-9905/norton.html demonstrate economic and technical dynamics of these two methods of interconnection Peering Methodology Discussion Yes Yes Exchange- Based Peering Direct-Circuit Peering Telecommunications Access Issues Deployment Issues Current Presence Exchange Population Operations Issues Cost Issues Credibility Who can sell me Circuits and when? Dark Fiber? Is there carrier diversity? How fast can I get connectivity into the exchange? Easiest to peer where one of us already has a presence Is it easy to evolve my presence? More Racks? More bandwidth? Operations restrictions? "Must use" 1 carrier? "Must buy transit from a particular ISP?" Do I have to connect to a switch? Is the switch congested? Is exchange well backed? Will it be around next year? WIll it attract the "right" ISPs? When will critical mass be reached? How do I and how fast can I get equipment into the exchange? Can I get in? Do I have to physically show up, flight, schedule, time costs, etc. or remote hands install? How fast can contracts get done? Side benefits of exchange point? Who else can I peer with there? Are there transit sales possibilities? What are the fees? Cost of alternative exchanges? What are the parameters surrounding fees? Do I have to connect to switch?

  38. When does Peering Make Sense Financially?

  39. Definition of Transport Def: Transport refers to the physical/data link layer media (e.g. circuits, gigE switching fabric, gigE over fiber cross connects). “I’m using Level 3 for transport into the Exchange Point” --or-- “I’m using Telseon gigE for transport into the Exchange”

  40. 10M Peering versus Transit TransportIntoIX IXFees $250 $500 R 100M IX Switch R TotalPeeringCost $450 $1,000 10M 100M $200 $500 Peering vs Transit $1,200 $1,000 $800 TransitPrice 10MPeer 100MPeer $/Mbps $600 $400 $200 $0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 # Mbps Exchanged

  41. Generalization: ISP Peering Breakeven Analysis Graphs $/Mbps Exchanged Breakeven Point (ISPs Indifferent between Peering and Transit traffic exchange) Peering Risk Prefer Peering Cost of Transit Cost of Traffic Exchange in Peering Relationship Number of Mbps exchanged

  42. Why NOT to Peer… Already get Traffic for free (through existing peering relationships) • Personality Clashes • Traffic Inequities (“I don’t want to haul your traffic for free around the world!”) • Lack of Technical Expertise “We don’t believe you have the clue” • Transit Sales Preferred “Let me introduce you to our salesguys” • BGP is TOUGH

  43. Questions? Peering Simulation Game is next

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