[2681] in Commercialization & Privatization of the Internet

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Settlements

daemon@ATHENA.MIT.EDU (drw@BOURBAKI.MIT.EDU)
Fri Apr 10 14:32:59 1992

Date: Fri, 10 Apr 92 14:31:29 EDT
From: drw@BOURBAKI.MIT.EDU
To: com-priv@psi.com
In-Reply-To: <9204082158.AA15209@psi.com> "HORN%athena@leia.polaroid.com"

   From: HORN%athena@leia.polaroid.com

   Why does everyone assume that packets (bytes, whatever) should be counted?  
   Settlements should correspond to costs, so measure and settle based on the 
   things that cause costs.  Costs are operations labor, capital equipment, 
   communications line leases, etc.  These are capacity related, not usage 
   related.  Usage is just an indirect factor.

Well, for the "last mile" (the wire between your organization and the
first external router), costs are based on the capacity you have, not
the usage.  But once you get to that router, the extra capacity needed
to support you is much more dependent on your average usage than your
peak usage.

Dale Worley		Dept. of Math., MIT		drw@math.mit.edu
--
Computers are like Old Testament gods; lots of rules and no mercy.
-- Joseph Campbell

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