[180209] in North American Network Operators' Group

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Re: Capacity/transit costs vs growth

daemon@ATHENA.MIT.EDU (Valdis.Kletnieks@vt.edu)
Thu May 28 02:34:11 2015

X-Original-To: Nanog@nanog.org
To: Jean-Francois Mezei <jfmezei_nanog@vaxination.ca>
In-Reply-To: Your message of "Wed, 27 May 2015 17:36:23 -0400."
 <556638D7.9020305@vaxination.ca>
From: Valdis.Kletnieks@vt.edu
Date: Thu, 28 May 2015 02:34:01 -0400
Cc: Nanog@nanog.org
Errors-To: nanog-bounces@nanog.org

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On Wed, 27 May 2015 17:36:23 -0400, Jean-Francois Mezei said:

> For instance, say end user average capcity usage increases 50% over 3
> years, would the ISP's costs also increase by 50% ?

Depends.  If the current gear had enough capacity to absorb the additional
50%, the ISP's costs didn't change. You were blowing 6Gbits/sec down a
10G pipe, and now you're pushing 9, you don't care.

On the other hand, if you were pushing 8 and now need to push 12, you
may have just bought a very expensive forklift upgrade to 40G.

Drastically oversimplified, of course.



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