a question about the economics of peering
Today, I was approached by *unnamed-ethernet-extension-company*. They extend ethernets between several US and UK peering exchanges. While speaking with them today, thier engineer and I got into a little bit of a disagreement as to why people peer with each other at public exchange points. My belief is that generally speaking, networks meet at public exchange points (such as MAE-*, LINX, AMSIX, AADS, etc) is to exchange traffic with each other more economically (read: save money). His belief is that people will pay a premium to get to an exchange point, because it's worth paying a premium to have 'less hops' between two networks. Essentially, he said that paying more for peering that for transit is typical, and to be expected, and most people accept this. Whats the common opinion on this?
Today, I was approached by *unnamed-ethernet-extension-company*. They extend ethernets between several US and UK peering exchanges.
While speaking with them today, thier engineer and I got into a little bit of a disagreement as to why people peer with each other at public exchange points. My belief is that generally speaking, networks meet at public exchange points (such as MAE-*, LINX, AMSIX, AADS, etc) is to exchange traffic with each other more economically (read: save money).
His belief is that people will pay a premium to get to an exchange point, because it's worth paying a premium to have 'less hops' between two networks.
The problem with this idea is that public exchange points need to be *avoided* when they get too congested. People may start out trying to minimize number of hops, but I think they eventually try to minimize total latency.
Essentially, he said that paying more for peering that for transit is typical, and to be expected, and most people accept this.
Whats the common opinion on this?
"David R. Dick" wrote:
Today, I was approached by *unnamed-ethernet-extension-company*. They extend ethernets between several US and UK peering exchanges.
While speaking with them today, thier engineer and I got into a little bit of a disagreement as to why people peer with each other at public exchange points. My belief is that generally speaking, networks meet at public exchange points (such as MAE-*, LINX, AMSIX, AADS, etc) is to exchange traffic with each other more economically (read: save money).
His belief is that people will pay a premium to get to an exchange point, because it's worth paying a premium to have 'less hops' between two networks.
The problem with this idea is that public exchange points need to be *avoided* when they get too congested. People may start out trying to minimize number of hops, but I think they eventually try to minimize total latency.
but what if the *unnamed-ethernet-extension-company* wasn't providing access to public exchange points, but was rather enabling uncongested private peering over its network? That way latency and hop count are both mimimised. BTW, public IXen in Europe don't tend to be congested. Whether this is the result of better management, or of lower traffic volumes, than IXen in the US I'm not sure... Giles
Essentially, he said that paying more for peering that for transit is typical, and to be expected, and most people accept this.
Whats the common opinion on this?
-- ================================================================= Giles Heron Principal Network Architect PacketExchange Ltd. ph: +44 7880 506185 "if you build it they will yawn" =================================================================
but what if the *unnamed-ethernet-extension-company* wasn't providing access to public exchange points, but was rather enabling uncongested private peering over its network? That way latency and hop count are both mimimised.
But, *unnamed-ethernet-extension-company*, to me, only marketed access to other exchange points. Also, what does hop count have to do with latency and loss? Especially, when *unnamed-ethernet-extension-company* is using MPLS/IP (presumably) to do this?
BTW, public IXen in Europe don't tend to be congested. Whether this is the result of better management, or of lower traffic volumes, than IXen in the US I'm not sure...
Probably better management, is my guess.
================================================================= Giles Heron Principal Network Architect PacketExchange Ltd. ph: +44 7880 506185 "if you build it they will yawn" =================================================================
On Fri, 30 Nov 2001, David R. Dick wrote: :The problem with this idea is that public exchange points need :to be *avoided* when they get too congested. People may start :out trying to minimize number of hops, but I think they eventually :try to minimize total latency. Indeed. The notion of "hopcount" is objectively meaningless. You can count hops by physical wires, data segments, network hops, AS's or combinations of each (MPLS, GRE, PPP etc). He may have been trying to suggest the value of having a low latency path to a tier-1 provider, who may have low latency across their backbone and through their cores. But this is what you get with any good ISP, so I don't understand what makes IX's more special than being connected to UUNet, Exodus, or any other tier-1. In fact, having a connection to a tier-1, who may be at many IX's, would leave you with the benefits of diverse paths to other networks, without the premium of an IX. Especially considering the tier-1 would be doing traffic shaping to minimize latency across the backbone. Also, I wonder if you can measure latency reliably over time for more than 3 or 4 'hops' out, and relative to a small number of destinations, before your results cease to be relative to each other? I'm sure there is a principle like this acting upon the Internet somehow. Without latency measurements for the media you are counting hops in, you might as well count sheep. I think the engineer mentioned at the beginning of this thread was trying to hoodwink and bamboozle you. -- batz Reluctant Ninja Defective Technologies
batz wrote:
On Fri, 30 Nov 2001, David R. Dick wrote:
:The problem with this idea is that public exchange points need :to be *avoided* when they get too congested. People may start :out trying to minimize number of hops, but I think they eventually :try to minimize total latency.
Indeed. The notion of "hopcount" is objectively meaningless. You can count hops by physical wires, data segments, network hops, AS's or combinations of each (MPLS, GRE, PPP etc).
He may have been trying to suggest the value of having a low latency path to a tier-1 provider, who may have low latency across their backbone and through their cores.
But this is what you get with any good ISP, so I don't understand what makes IX's more special than being connected to UUNet, Exodus, or any other tier-1. In fact, having a connection to a tier-1, who may be at many IX's, would leave you with the benefits of diverse paths to other networks, without the premium of an IX. Especially considering the tier-1 would be doing traffic shaping to minimize latency across the backbone.
Also, I wonder if you can measure latency reliably over time for more than 3 or 4 'hops' out, and relative to a small number of destinations, before your results cease to be relative to each other? I'm sure there is a principle like this acting upon the Internet somehow.
Without latency measurements for the media you are counting hops in, you might as well count sheep. I think the engineer mentioned at the beginning of this thread was trying to hoodwink and bamboozle you.
Folks, I'm stood to one side up to now, but now this thread is drifting over to personal abuse. I was the engineer in question, and I was most certainly not trying to hoodwink or bamboozle. Neither am I an ignorant sales-droid, as someone else has said. Those of you who know me, as I think that a fair number of people on this list do, will vouch for my honesty, and my pedigree in the industry. I think Alex misunderstood what I was trying to say, and since we were shouting at each other down a very bad phone line with a loudspeaking phone at either end, he's got a certain amount of excuse. Firstly, I've been designing IP networks since the late 80s, and ISPs since the early 90s. I'm not "fresh out of cable school" to quote one correspondant. I've set peering policy for at least 2 large ISPs (BTnet and Level3 (Europe)). Peering is my field of expertise. I'm on the council of the LINX, which is the biggest peering point in Europe. I've also got experience of selling internet services in Europe, and to be frank, the customers over here have different requirements than over in the US. The first thing you get asked is "how good is your peering". They then ask you how much private peering you have, despite the fact that IXPs in Europe tend to be well run and uncongested. What I was offering him was a LAN extension service. One of the things you can use this for is to peer with other customers. It looks like a direct peering (so you keep customers happy) and it gets the bits from A to C without passing through (possibly congested and oversubscribed) B. Its not an oversubscribed service, so you get effectively private line performance. And the costing is distance independent, which makes it more like a peering point, in charging terms. Hope this sets the record straight. Note that I'm posting this from my home email address, and I'm speaking on my own behalf, not that of my company. All the best Nigel
I've set peering policy for at least 2 large ISPs (BTnet and Level3 (Europe)). Peering is my field of expertise. I'm on the council of the LINX, which is the biggest peering point in Europe. I've also got experience of selling internet services in Europe, and to be frank, the customers over here have different requirements than over in the US. The first thing you get asked is "how good is your peering". They then ask you how much private peering you have, despite the fact that IXPs in Europe tend to be well run and uncongested.
yeah don't talk to me about some of the bozo companies I've had to talk to about "congestion at the peering points" and how they can wave their magic wand and make all those problems go away.
What I was offering him was a LAN extension service. One of the things you can use this for is to peer with other customers. It looks like a direct peering (so you keep customers happy) and it gets the bits from A to C without passing through (possibly congested and oversubscribed) B. Its not an oversubscribed service, so you get effectively private line performance. And the costing is distance independent, which makes it more like a peering point, in charging terms.
Sounds like something we looked at a while ago - layer 2 interconnectivity over IP or MPLS for ISP's - we couldn't make the numbers add up though. Regards, Neil.
Neil J. McRae wrote (on Nov 30):
yeah don't talk to me about some of the bozo companies I've had to talk to about "congestion at the peering points" and how they can wave their magic wand and make all those problems go away.
A current pitch from a certain newish IXP entrant in London is that they can save me money off my Transit bill. When vendors get their facts so blatantly wrong about your company, I seriously consider whether they're worth doing business with - true it's just the sales droid, but IXen don't need that many sales droids, I thought...
Sounds like something we looked at a while ago - layer 2 interconnectivity over IP or MPLS for ISP's - we couldn't make the numbers add up though.
It's something I have considered for backup connectivity, but it never went anywhere. I'm waiting for Nigel to pitch to me, in case his version makes sense. :) Chris.
Nigel, Nanog: The original intent of the inquiry was not to bring into question the intelligence of Nigel; I can't speak to that since I don't know him, nor did I even know of him. My communication also does not speak to the potential success of PacketExchange. My question was simply a curiosity ping of _why_ people peer with each other; in my mind, it had always, and never not, been a way to reduce cost of traffic sent/rec'd. I was curious as to whether or not others had a similar view to mine. On Fri, 30 Nov 2001, Nigel Titley wrote:
Folks,
I'm stood to one side up to now, but now this thread is drifting over to personal abuse.
I was the engineer in question, and I was most certainly not trying to hoodwink or bamboozle. Neither am I an ignorant sales-droid, as someone else has said. Those of you who know me, as I think that a fair number of people on this list do, will vouch for my honesty, and my pedigree in the industry.
I think Alex misunderstood what I was trying to say, and since we were shouting at each other down a very bad phone line with a loudspeaking phone at either end, he's got a certain amount of excuse.
-- Alex Rubenstein, AR97, K2AHR, alex@nac.net, latency, Al Reuben -- -- Net Access Corporation, 800-NET-ME-36, http://www.nac.net --
On Fri Nov 30, 2001 at 10:39:57PM -0500, Alex Rubenstein wrote:
My question was simply a curiosity ping of _why_ people peer with each other; in my mind, it had always, and never not, been a way to reduce cost of traffic sent/rec'd. I was curious as to whether or not others had a similar view to mine.
For us, I'd say there's a two-fold win. 1) Cost. We try to aim for less than $100/mbps on peering connections. This isn't always the case when first connecting to a NAP, because PtP circuits and NAP ports aren't charged per mbps, so the cost per mbps is much higher for the first 10 or 20 meg, and comes down after that. It also serves to expand our potential network capacity. This can work right to extremes - in the UK (our primary geographical target region), we can reach probably 99% of users without using our transit with Level3 and others in the USA. 2) More direct relationships with end-user ISPs. Okay, there's no formal SLAs or anything like that, but there *is* a relationship between us and a peer. When a user complains about connectivity issues, it's more likely that there's just two parties involved - us and the user's ISP. We're not transitting through 2 or 3 other ISPs in the middle - all of which could be the cause of problems. Simon -- Simon Lockhart | Tel: +44 (0)1737 839676 Internet Engineering Manager | Fax: +44 (0)1737 839516 BBC Internet Services | Email: Simon.Lockhart@bbc.co.uk Kingswood Warren,Tadworth,Surrey,UK | URL: http://support.bbc.co.uk/
Alex Rubenstein wrote:
Nigel, Nanog:
The original intent of the inquiry was not to bring into question the intelligence of Nigel; I can't speak to that since I don't know him, nor did I even know of him. My communication also does not speak to the potential success of PacketExchange.
My question was simply a curiosity ping of _why_ people peer with each other; in my mind, it had always, and never not, been a way to reduce cost of traffic sent/rec'd. I was curious as to whether or not others had a similar view to mine.
And I'd like to place on record that I had no real problem with Alex's original email. It was only when the thread began to drift towards the personal that I spoke up. My own personal view is that there are a number of reasons for peering: including but not limited to cost, shorter paths to desirable data sources, "my network is bigger than yours", reduced latency etc. Mix and match according to company policy/ personal inclination. All the best Nigel
On Fri, 30 Nov 2001, batz wrote:
Indeed. The notion of "hopcount" is objectively meaningless. You can count hops by physical wires, data segments, network hops, AS's or combinations of each (MPLS, GRE, PPP etc).
Actually, not. The hops which "count" are places where traffic flows are stochastically multiplexed. Since every such place has to have buffers of size comparable to end-to-end RTT * bandwidth (to give enough time for TCP flow control to react), the maximal packet delay is Nhops*RTT. Note this does not say what the median variable latency (fixed latency is the signal propagation time) is going to be because it depends on probability of multiple congestions along the path. If congestion events are independent, the result isn't that bad (with long-lived congestion probability of 50% the median variable latency is 2*RTT). Unfortunately, this assumption is not likely to be realistic. I.e. in the "aggregation tree" networks (like the most modern backbones which aggregate outgoing exterior traffic at multiple points, where every aggregation point reduces the total egress bandwith), the congestion is likely to occure simultaneously at many aggregation points along the path. The way to combat variable latency is to reduce the number of hops. This effectively means either creation of meshes of fixed bit-rate circuits (which is way way way ugly because of routing scalability issues), or reducing the number of aggregators along the path by reducing the number of routers. The simplest way to do that is to replace router clusters with large parallel routers featuring non-blocking switching fabrics. Note that non-CBR virtual-circuit techniques (tunnels, MPLS, non-CBR ATM, FR, X.25 etc) don't do anything to reduce the _real_ hopcount; they simply obscure it. --vadim
Today, I was approached by *unnamed-ethernet-extension-company*. They extend ethernets between several US and UK peering exchanges.
While speaking with them today, thier engineer and I got into a
of a disagreement as to why people peer with each other at
little bit public exchange
points. My belief is that generally speaking, networks meet at public exchange points (such as MAE-*, LINX, AMSIX, AADS, etc) is to exchange traffic with each other more economically (read: save money).
His belief is that people will pay a premium to get to an exchange point, because it's worth paying a premium to have 'less hops' between two networks.
The problem with this idea is that public exchange points need to be *avoided* when they get too congested. People may start out trying to minimize number of hops, but I think they eventually try to minimize total latency.
Hmm. Congested public exchange points were a reality at some point in the past. They are now a recurrent myth, thanks to the demise of FDDI EPs and the rise of GigE EPs. There is little congestion, at this point. Of course, this could be because most Internet traffic is exchanged over private peering. I think that most clued folks are largely uninterested in hop-count. Latency is much more important. - Daniel Golding
Essentially, he said that paying more for peering that for transit is typical, and to be expected, and most people accept this.
Whats the common opinion on this?
Daniel Golding wrote:
.....
Hmm. Congested public exchange points were a reality at some point in the past. They are now a recurrent myth, thanks to the demise of FDDI EPs and the rise of GigE EPs. There is little congestion, at this point. Of course, this could be because most Internet traffic is exchanged over private peering.
I think that most clued folks are largely uninterested in hop-count. Latency is much more important.
that depends on your primary application, latency is not important for streaming or downloads. ak
On Friday, November 30, 2001, at 12:00 PM, Arman wrote:
Daniel Golding wrote:
.....
Hmm. Congested public exchange points were a reality at some point in the past. They are now a recurrent myth, thanks to the demise of FDDI EPs and the rise of GigE EPs. There is little congestion, at this point. Of course, this could be because most Internet traffic is exchanged over private peering.
I think that most clued folks are largely uninterested in hop-count. Latency is much more important.
that depends on your primary application, latency is not important for streaming or downloads.
heh! tell someone on the end of duplex satellite that! Streaming no, downloads very much yes. jm
ak
#include <standard.disclaimer.h> On Fri, Nov 30, 2001 at 11:52:28AM -0500, Alex Rubenstein wrote:
Today, I was approached by *unnamed-ethernet-extension-company*. They extend ethernets between several US and UK peering exchanges.
While speaking with them today, thier engineer and I got into a little bit of a disagreement as to why people peer with each other at public exchange points. My belief is that generally speaking, networks meet at public exchange points (such as MAE-*, LINX, AMSIX, AADS, etc) is to exchange traffic with each other more economically (read: save money).
This is/was the case for some of my previous employers. We operated regional networks and persued regional peering @ AADS amongst other places to reduce the cost of upstream connectivity.. primarily to interconnect with a number of the .edus and "easy-to-peer-with" people because we could save costs. We typically figured out/guessed at the bandwidth usage/savings with flow stats or other means and were generally correct.
His belief is that people will pay a premium to get to an exchange point, because it's worth paying a premium to have 'less hops' between two networks.
I wouldn't say a premium, but it's generally speaking nicer to have a more direct connection. I persued ethernet handoffs in various regional CLEC spaces with some of the other local ISPS at times but they typically didn't have bgp out to the edge (or we didn't have it there) so it wasn't easy to do so.
Essentially, he said that paying more for peering that for transit is typical, and to be expected, and most people accept this.
If it's cheaper to buy transit than to show up at an exchange point why would it be worth it? Then you can use your SLA to your advantage. Get a few free months possibly depending on how your upstream operates their network and how they do their SLA. Plus having someone you can call and open up tickets about congestion, etc.. where if you peer with the network that has the congestion and there is no money changing hands there is not a lot of incentive for them to fix it just for you. Use your account manager to your advantage IMHO and work to get good quality service out of your network. Or get some money back or a discounted service then work on showing up at the various exchange points, IMHO. - Jared -- Jared Mauch | pgp key available via finger from jared@puck.nether.net clue++; | http://puck.nether.net/~jared/ My statements are only mine.
Date: Fri, 30 Nov 2001 11:52:28 -0500 (Eastern Standard Time) From: Alex Rubenstein <alex@nac.net>
Essentially, he said that paying more for peering that for transit is typical, and to be expected, and most people accept this.
<sarcasm> And paying more for dialup than OC3s is typical, and most people accept this. </sarcasm> Does this salesdroid even know WTH peering and transit provide? Sorry, I just don't seeing anyone with a modicum of sense paying more for a few thousand routes (with little or no redundancy, depending on peering arrangements) than a full table with a fair amount of redundancy. At the risk of overgeneralizing, it sounds like he's fresh out of cableco school. I once contacted a couple of cable companies re peering... and they wanted to charge more than transit. They considered it "priority service" and thought there'd be no benefit to them. Ungh? I mentioned this on a mailing list (isp-whatever? inet-access? NANOG?) a while back, and someone else responded that s/he'd had a similar experience. Eddy --------------------------------------------------------------------------- Brotsman & Dreger, Inc. - EverQuick Internet Division Phone: +1 (316) 794-8922 Wichita/(Inter)national Phone: +1 (785) 865-5885 Lawrence --------------------------------------------------------------------------- Date: Mon, 21 May 2001 11:23:58 +0000 (GMT) From: A Trap <blacklist@brics.com> To: blacklist@brics.com Subject: Please ignore this portion of my mail signature. These last few lines are a trap for address-harvesting spambots. Do NOT send mail to <blacklist@brics.com>, or you are likely to be blocked.
On Friday 30 November 2001, at 11 h 52, Alex Rubenstein <alex@nac.net> wrote:
While speaking with them today, thier engineer and I got into a little bit of a disagreement as to why people peer with each other at public exchange points.
There is also an important reason to be connected at several exchange points: reliability. If you just have one transit provider, you're more vulnerable than with one transit provider plus a variety of peerings, which will still carry at least part of the traffic if the main provider fails.
participants (17)
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Alex Rubenstein
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Arman
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batz
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Chrisy Luke
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Daniel Golding
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David R. Dick
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E.B. Dreger
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Giles Heron
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Jared Mauch
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Jon Mansey
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neil@DOMINO.ORG
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Nigel Titley
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Randy Bush
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Sean Donelan
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Simon Lockhart
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Stephane Bortzmeyer
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Vadim Antonov