nanog mailing list archives
Re: Backbone IP network Economics - peering and transit
From: Daniel Golding <dgolding () burtongroup com>
Date: Tue, 20 Apr 2004 10:32:50 -0400
On 4/20/04 1:34 AM, "Michel Py" <michel () arneill-py sacramento ca us> wrote:
Patrick W.Gilmore wrote: Unless they have cheap access to a free NAP (TorIX, SIX, etc.), transit, even at higher prices, is probably be the best / cheapest way to reach the Internet.This is true, but there are plenty of other opportunities for peering, such as: both parties buy DS-3 class transit from the same tier-2 or even maybe tier-3 provider in a colo (which will likely be a BFM, other problem) not a formal IX. In other words, peering in an IX does cost money, but peering at a colo might not, as these messy colos are mostly unmanaged and nobody cares about that 25ft cross-over cable :-) Michel.
This is a classical mistake. Peering always costs money and its never free. The question is, how much, and is it cheaper than transit? Costs incurred in peering: - Port Costs (capex) - A share of a router's backplane capacity corresponding to the port - Cross connect costs (one time or recurring) - Operational costs such as legal review for BLPAs, NOC monitoring, troubleshooting when it flaps, putting MD5 on, etc - Administration - Public Switch costs It is difficult to defend peering strategies today unless your network is of a fairly significant size (gigabits of traffic) and you are collocated in an advantageous location(s). Otherwise, low cost transit is hard to beat. Some of the low cost transit providers will not last, and there WILL be a second round of bankruptcies and consolidations - Googin's words should be heeded. However, if you are multihomed and have sufficient transit diversity (and you don't assume any local loop liabilities), the low cost transit should be exploited while it lasts. -- Daniel Golding Network and Telecommunications Strategies Burton Group
Current thread:
- Backbone IP network Economics - peering and transit Gordon Cook (Apr 19)
- Re: Backbone IP network Economics - peering and transit Mikael Abrahamsson (Apr 19)
- <Possible follow-ups>
- RE: Backbone IP network Economics - peering and transit Michel Py (Apr 19)
- Re: Backbone IP network Economics - peering and transit Patrick W . Gilmore (Apr 19)
- Re: Backbone IP network Economics - peering and transit Paul Vixie (Apr 19)
- Re: Backbone IP network Economics - peering and transit vijay gill (Apr 20)
- RE: Backbone IP network Economics - peering and transit Michel Py (Apr 19)
- Re: Backbone IP network Economics - peering and transit Daniel Golding (Apr 20)
- Re: Backbone IP network Economics - peering and transit Patrick W . Gilmore (Apr 20)
- TCP Vulnerability makes case for authenticated BGP tad pedley (Apr 20)
- Re: TCP Vulnerability makes case for authenticated BGP Pekka Savola (Apr 20)
- Re: Backbone IP network Economics - peering and transit Stephen J. Wilcox (Apr 20)
- Re: Backbone IP network Economics - peering and transit Patrick W . Gilmore (Apr 20)
- IP economics morphed into (TCP/RST) Blaine Christian (Apr 20)
- Re: IP economics morphed into (TCP/RST) Stephen J. Wilcox (Apr 22)
- Re: IP economics morphed into (TCP/RST) Niels Bakker (Apr 22)
- Re: IP economics morphed into (TCP/RST) Stephen J. Wilcox (Apr 22)
- Re: Backbone IP network Economics - peering and transit Daniel Golding (Apr 20)
- RE: IP economics morphed into (TCP/RST) Blaine Christian (Apr 22)