[179536] in North American Network Operators' Group
Re: Peering and Network Cost
daemon@ATHENA.MIT.EDU (Justin Wilson - MTIN)
Fri Apr 17 11:53:53 2015
X-Original-To: nanog@nanog.org
From: Justin Wilson - MTIN <lists@mtin.net>
In-Reply-To: <8E740079-528D-4C55-9BD0-8884A9EDC139@freethought-internet.co.uk>
Date: Fri, 17 Apr 2015 11:53:49 -0400
To: "nanog@nanog.org" <nanog@nanog.org>
Errors-To: nanog-bounces@nanog.org
Peering and peering on an exchange are two different things. Peering at =
an exchange has several benefits other than the simple cost of transit. =
If you are in a large data center which charges fees for cross connects =
a single cross connect to an exchange can save you money.
Peering can also be a sales tool. If you buy from a VOIP provider and =
are peered with them your latency and such will go down. You also have =
more control over the QOS over that peer. This can be spun into =
marketing. =20
Not to toot our own horn but we put together a list of benefits for our =
IX customers:
http://www.midwest-ix.com/blog/?p=3D15
Also, a good article at:
=
http://blog.webserver.com.my/index.php/the-benefits-of-hosting-at-internet=
-exchange-point/
Justin
Justin Wilson j2sw@mtin.net
http://www.mtin.net Managed Services =96 xISP Solutions =96 Data =
Centers
http://www.thebrotherswisp.com Podcast about xISP topics
http://www.midwest-ix.com Peering =96 Transit =96 Internet Exchange=20
> On Apr 16, 2015, at 11:10 AM, Edward Dore =
<edward.dore@freethought-internet.co.uk> wrote:
>=20
> On 16 Apr 2015, at 08:00, Tore Anderson <tore@fud.no> wrote:
>=20
>> * Mark Tinka <mark.tinka@seacom.mu>
>>=20
>>> On 16/Apr/15 07:25, Tore Anderson wrote:
>>>> We're in a similar situation here; transit prices has come down so
>>>> much in recent years (while IX fees are indeed stagnant) that I am
>>>> certain that if I were to cut all peering and buy everything from a
>>>> regional tier-2 instead, I'd be lowering my total MRC somewhat,
>>>> without really reducing connectivity quality to my (former) peers.
>>>=20
>>> I wouldn't say exchange point prices are stagnant, per se. They may
>>> remain the same, but what goes up is the port bandwidth. It's not
>>> directly linear, but you get my point.
>>>=20
>>> Again, the burden is on the peering members to extract the most out =
of
>>> their peering links by having as much peering as possible.
>>=20
>> You appear to be assuming that an IP transit port is more expensive
>> then an IXP port with the same speed. That doesn't seem to always be
>> the case anymore, at least not in all parts of the world, and I =
expect
>> this trend to continue - transit prices seems to go down almost on a
>> monthly basis, while the price lists of the two closest IXPs to where
>> I'm sitting are dated 2011 and 2013, respectively.
>>=20
>> Even if the transit port itself remains slightly more expensive than
>> the IXP port like in the example Baldur showed, the no-peering
>> alternative might still be cheaper overall because even if you're
>> peering most of your traffic you'll still need to pay a nonzero =
amount
>> for a (smaller or less utilised) transit port anyway.
>>=20
>> Tore
>=20
> Pricing at LINX here in the UK has definitely dropped over the past =
few years.
>=20
> Back in 2011, the membership fee was =A31500/year and it's now =
=A31200/year.
>=20
> 1G ports were =A3391/month on the first London LAN and =A3335/month on =
the second London LAN. They're now free on both LANs for the first port =
and then =A3270/month and =A3180/month respectively for additional =
ports.
> You can also get a free 1G port on each of the Manchester UK, Cardiff =
UK, Edinburgh UK and North Virginia/Washington DC USA LANs as part of =
the same membership fee (none of these additional LANs existed in 2011).
>=20
> 10G ports were =A31463/month on the first London LAN and =A31250/month =
on the second London LAN. They're now =A31030/month and =A3785/month =
respectively.
>=20
> So that's what, a 20% reduction in membership fees and a 30% or higher =
(depending on the service) reduction in port fees in 4 years?
>=20
> I don't have any quantifiable data on what has happened to IP transit =
costs over the same period, but for a point comparison I'd say that off =
the top of my head you can get a 1G CDR on a 10G port from a tier-1 =
provider in London for approximately the same cost as a 10G port at LINX =
these days, maybe slightly cheaper.
>=20
> Edward Dore=20
> Freethought Internet=20
