[179497] in North American Network Operators' Group
Re: Peering and Network Cost
daemon@ATHENA.MIT.EDU (Mike Hammett)
Wed Apr 15 15:17:51 2015
X-Original-To: nanog@nanog.org
Date: Wed, 15 Apr 2015 12:58:02 -0500 (CDT)
From: Mike Hammett <nanog@ics-il.net>
To: nanog@nanog.org
In-Reply-To: <552EA4F1.5010700@netassist.ua>
Errors-To: nanog-bounces@nanog.org
It also depends on traffic makeup. Huge amounts of eyeball traffic go to (w=
ell, come from) NetFlix (a third) and Google, FaceBook, Hulu, Amazon, etc. =
(another third). It's comparable price to peer off those few huge sources o=
f traffic and buy better transit than you would have than to just buy cheap=
transit.=20
A lot of people tend to forget there are thousands of independent ISPs out =
there, usually in areas where there aren't a breadth of providers in the fi=
rst place. Most could get buy with a single GigE (or even less).=20
-----=20
Mike Hammett=20
Intelligent Computing Solutions=20
http://www.ics-il.com=20
----- Original Message -----
From: "Max Tulyev" <maxtul@netassist.ua>=20
To: nanog@nanog.org=20
Sent: Wednesday, April 15, 2015 12:50:41 PM=20
Subject: Re: Peering and Network Cost=20
Hi Roderick,=20
transit cost is lowering close to peering cost, so it is doubghtful=20
economy on small channels. If you don't live in=20
Amsterdam/Frankfurt/London - add the DWDM cost from you to one of major=20
IX. That's the magic.=20
In large scale peering is still efficient. It is efficient on local=20
traffic which is often huge.=20
On 04/15/15 17:28, Rod Beck wrote:=20
> Hi,=20
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> As you all know, transit costs in the wholesale market today a few percen=
t of what it did in 2000. I assume that most of that decline is due to a mo=
dified version of Moore's Law (I don't believe optics costs decline 50% eve=
ry 18 months) and the advent of maverick players like Cogent that broker co=
zy oligopoly pricing.=20
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>=20
> But I also wondering whether the advent of widespread peering (promiscuou=
s?) among the Tier 2 players (buy transit and peer) has played a role. In 2=
000 peering was still an exclusive club and in contrast today Tier 2 player=
s often have hundreds of peers. Peering should reduce costs and also demand=
in the wholesale IP market. Supply increases and demand falls.=20
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> I thank you in advance for any insights.=20
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>=20
> Regards,=20
>=20
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> - R.=20
>=20
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> Roderick Beck=20
> Sales Director/Europe and the Americas=20
> Hibernia Networks=20
>=20
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