nanog mailing list archives
Re: Info on MAE-EAST
From: "Brett L. Hawn" <blh () nol net>
Date: Wed, 15 Jan 1997 22:18:06 -0600 (CST)
On Wed, 15 Jan 1997, Nathan Stratton wrote:
If part of your business was public interconnects why would you want to help private interconnects? I think you are right though, at the Atlanta-NAP we wanted to draw some of the big players, and one of the ways to do this was to let them do private interconnects over the gigaswitch of cascade 500 and then let them peer with people if they wanted to.
Intelligent business knows when machines get overloaded and how to make money by allowing people to circumvent their network. One can assume that if the price for private interconnects were somewhat more reasonable more people would come to the MAE's. Enforcing a poorly planned economy even at this small a level is not the best way to make money. MAE-Houston, a small NAP in the scheme of things, but it makes for a good example so we'll use it. $2000/month to get your foot in the door, then another large chunk of cash to connect to the Gigaswitch which all things considered, isn't really needed. Rather than waste their money on equipment that all in all just doesn't need to be there, why not make it more economic for local players to get involved and cross connect to eachother. In the end you not only save money by not bringing in useless hardware but you garner more customers by lessening the price of the private interconnect. Think about it: Assume you have 5 customers at your NAP, all paying $5000/month for the local loop to the NAP + a connect to the Gigaswitch. You're making 25k/month, which if I guess correctly (and I could be way off, considering I'm not really up on my figures) covers your costs and payroll with perhaps 1-5k left over profit. Now take 20 customers all paying 3000/month for rack space and private interconnects. You don't have the overhead of the Gigaswitch, you have less people (less payroll expenses) and you're making $60,000/month. Less overhead, more profit. [-] Brett L. Hawn (blh @ nol dot net) [-] [-] Networks On-Line - Houston, Texas [-] [-] 713-467-7100 [-] - - - - - - - - - - - - - - - - -
Current thread:
- Re: Info on MAE-EAST, (continued)
- Re: Info on MAE-EAST Avi Freedman (Jan 14)
- Netscape MAE colocation? Miguel A.L. Paraz (Jan 14)
- Re: Netscape MAE colocation? Avi Freedman (Jan 15)
- Re: Netscape MAE colocation? Jason Vagner (Jan 15)
- Re: Info on MAE-EAST JDF (Jan 15)
- Re: Info on MAE-EAST Stephen Balbach (Jan 15)
- Re: Info on MAE-EAST Chris Caputo (Jan 15)
- Re: Info on MAE-EAST Stephen Balbach (Jan 15)
- Re: Info on MAE-EAST Michael Dillon (Jan 15)
- Re: Info on MAE-EAST Nathan Stratton (Jan 15)
- Re: Info on MAE-EAST Brett L. Hawn (Jan 15)
- Re: Info on MAE-EAST Craig A. Haney (Jan 15)
- Re: Info on MAE-EAST Avi Freedman (Jan 15)
- RE: Info on MAE-EAST Hank Nussbacher (Jan 14)
- RE: Info on MAE-EAST Steve Feldman (Jan 15)
- Re: Info on MAE-EAST Brett L. Hawn (Jan 16)
- Re: Info on MAE-EAST Jeremy Porter (Jan 16)
- Re: Info on MAE-EAST Nathan Stratton (Jan 16)