RE: Backbone IP network Economics - peering and transit
where's the "lot of cost"?
Stephen J. Wilcox This is private vs public..
Even if it's private, and assuming that you're clever enough not to peer for a modem's worth of traffic, the cost is a no-brainer, IMHO. Someone checks my math please: At $20 per megabit for transit (which I find very low, but let's go for it anyway) a GE link for peering with an average use of 10% means $24000 per year saved; pays for the xconnect. Michel.
where's the "lot of cost"?
Stephen J. Wilcox This is private vs public..
Even if it's private, and assuming that you're clever enough not to peer for a modem's worth of traffic, the cost is a no-brainer, IMHO. Someone checks my math please: At $20 per megabit for transit (which I find very low, but let's go for it anyway) a GE link for peering with an average use of 10% means $24000 per year saved; pays for the xconnect.
If you have a gig of traffic to peer out to a single AS, you need quite a bit of infrastructure to support the peering and that infrastructure does not come cheap. Alex
alex@yuriev.com wrote:
where's the "lot of cost"?
Stephen J. Wilcox This is private vs public..
Even if it's private, and assuming that you're clever enough not to peer for a modem's worth of traffic, the cost is a no-brainer, IMHO. Someone checks my math please: At $20 per megabit for transit (which I find very low, but let's go for it anyway) a GE link for peering with an average use of 10% means $24000 per year saved; pays for the xconnect.
If you have a gig of traffic to peer out to a single AS, you need quite a bit of infrastructure to support the peering and that infrastructure does not come cheap.
But that structure doesn't vary vastly if you'd traffic out that gig via transit vs direct connect. It does vary (and add lots of infrastructure) if you don't aggregate your traffic at IXes and instead use loops to bring transit to you instead of going to it. (say a few 100Mb/s or OC3s in a few places instead of a GigE at an IX). Perhaps we should (for technical reasons) describe peering as "direct connecting". Business reasons aside, technically the difference is that with transit you are expecting access via indirect connections to networks. With peering you expect direct connections into a network. Deepak Jain AiNET
participants (3)
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alex＠yuriev.com -
Deepak Jain -
Michel Py