Equinix peering location matters 2016_feb_24
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The document discusses peering strategies and options at Equinix. It recommends planning for 20%+ annual traffic growth, including peering as part of the IP traffic growth strategy, and using a blend of transit, public peering, and private peering according to traffic volumes. It also recommends understanding the cost and flexibility implications of campus versus distributed peering, and planning for private peering traffic to outgrow public peering traffic over time. The document provides an overview of peering essentials and options available at Equinix locations worldwide.
Equinix peering location matters 2016_feb_24
- 1. Confidential – © 2016 Equinix Inc. Equinix.com 1 Peering at Equinix Why location choice matters AMS-IX • Ashburn • Atlanta • Chicago • CIXP • Dallas • DE-CIX • ECIX • France-IX • INEX • IXManchester • Geneva • Hong Kong • JPIX Tokyo • JPIX Osaka • JPNAP Tokyo • JPNAP Osaka • KleyReX • LINX • LONAP • Los Angeles • Melbourne • Miami • MIX-IT • NETNOD • New York • NL-IX • NSW-IX • Osaka • Palo Alto • Paris • PTT.br Sao Paulo • PTT.br Rio de Janeiro • Seattle • Silicon Valley • SIX • SOLIX • STHIX • SWISS-IX • TORIX • Toronto • Vienna (U.S.) • Singapore • Tokyo • Sydney • UAE-IX • VIC-IX • Warsaw • Zurich
- 2. Confidential – © 2016 Equinix Inc. Equinix.com 2 2 CONTENTS 1. About Equinix 2. The Five Essentials of Peering Planning i. Plan for 20+% future traffic growth annually ii. Include peering as part of IP traffic growth strategy iii. Plan for a blend of transit, public and private peering according to traffic volumes iv. Understand the cost and flexibility implications of campus peering vs. distributed peering v. Plan for private peering traffic to outgrow public peering traffic. 3. In the Beginning There Was IP Transit 4. Summing It All Up 2
- 3. Confidential – © 2016 Equinix Inc. Equinix.com 3 DC NY CH DA SV, PA-IX LINX, LONAP, NL-IX DE-CIX, KLEYREX, ECIX, NL-IX SG SY, NSW-IX PTT.BR SP MI TY, JPIX, JP-NAP TO, TORIXSE. SIX HKUAE-IX ME, VIC-IX PTT.BR RJ OS, JPIX, JP-NAPATLA GRX GRX Equinix operates or hosts the world’s largest Internet Exchanges 22EXCHANGES 27PARTNERS GRX NETNOD Se, STHIX, SOLIX
- 4. Confidential – © 2016 Equinix Inc. Equinix.com 4 Five essentials of peering planning 1. Plan for 20+% future traffic growth annually 2. Include peering as part of IP traffic growth strategy 3. Plan for a blend of transit, public and private peering according to traffic volumes 4. Understand the cost and flexibility implications of campus peering vs. distributed peering 5. Plan for private peering traffic to outgrow public peering traffic
- 5. Confidential – © 2016 Equinix Inc. Equinix.com 5 Peering Essential #1
- 6. Confidential – © 2016 Equinix Inc. Equinix.com 6 Plan for 20+% future traffic growth annually Failure to plan for future growth can result in lower network performance, higher costs, and negative customer impact 51,168 62,476 75,739 91,260 109,705 131,553 2013 2014 2015 2016 2017 2018 Global IP Traffic Forecast* (PB per month) * Source: Cisco Visual Networking Index: 2014 • Global IP traffic growth is forecast to grow at 21% CAGR through 2018* • Growth in peak traffic is increasing faster than average traffic – peak traffic will grow 3.4x vs. average traffic at 2.8x between 2013 and 2018* • Typical consumer broadband speeds will grow almost 3x between 2013 and 2018 – from 16Mbps to 42Mbps* Peering Essential #1
- 7. Confidential – © 2016 Equinix Inc. Equinix.com 7 Proportion of Internet traffic by region Global IP growth is uneven. Higher Growth = More Opportunity Source: CAGR in average Internet traffic 2011 - 2015. Telegeography Global Internet Geography Capacity and Traffic Trends, August 2015. NA 28% LATAM 40% MENA EU CEE 42% 32% 39% APAC 38%
- 8. Confidential – © 2016 Equinix Inc. Equinix.com 8 Peering Essential #2
- 9. Confidential – © 2016 Equinix Inc. Equinix.com 9 Include peering as part of IP traffic growth strategy Peering is consistently replacing transit Source: Telegeography Peering Essential #2 Peering is consistently replacing transit on a global basis Peering continues to be an attractive way to lower bandwidth costs. Transit price declines globally are slowing . Market share for transit is declining, being replaced by peering *Improving latency also motivates peering but typically cost is the primary driver
- 10. Confidential – © 2016 Equinix Inc. Equinix.com 10 Peering Essential #3
- 11. Confidential – © 2016 Equinix Inc. Equinix.com 11 Internet Exchange IP Transit Private Peering Plan for a blend of transit, public and private peering according to traffic volumes
- 12. Confidential – © 2016 Equinix Inc. Equinix.com 12 Operating all three IP Transport options minimizes cost at each phase Cost ($ MRC) Total Traffic to given destination (Mbps) Transit Private Peering Public Peering Private Peering is lowest cost Public Peering is lowest cost Transit is lowest cost • Transit is most cost effective at lower traffic volumes since multi-destination traffic shares the same bandwidth • Public peering works well for mid-tier traffic due to cost savings vs. transit* • Private peering over cross connects works well for high traffic volumes due to lowest cost advantage of direct cross connect* NOTE: Actual break-even points can vary greatly around the globe depending on local, costs of transit, internet exchange ports, and cross connects IP Traffic Maturity Model Conceptual Bandwidth Cost Model Peering Essential #3a 1 2 3 1 2 3 *Improving latency is also a motivation for peering but typically cost is the primary driver Phase Phase Phase
- 13. Confidential – © 2016 Equinix Inc. Equinix.com 13 Use the full range of IP Transport options available Peering Essential #3b Failing to plan for a blend of all three IP Transport options increases costs and decreases choice Value Phase of Maturity Optimal IP Transport Model Level 1 Level 2 Level 3 IP Transit IP Transit IP Transit Public Peering Add: Public Peering Use Internet Exchange to connect to peers • When used: Typically adopted as bandwidth to particular destinations is consistent and continues to grow, this serves as the entry point to peering • What to look for: A large number of peers on a common platform (Campus or Distributed Metro Peering). • Benefits: A single peering port can reach multiple destinations, making peering more affordable on a cost per Mbps basis vs. transit Add: Private Peering Use Cross Connect to connect to a peer within campus • When used: When traffic to single destination becomes large • What to look for: Customers should be where there is a large number of peers in a single campus or building (Campus Peering) • Benefits: Can scale to very high bandwidths at extremely low cost per Mbps vs. public peering Start: IP Transit / Direct Internet Access Use Cross Connect to connect to carrier within campus • When used: Lower traffic levels to many Internet destinations. • What to look for: To achieve greatest bargaining leverage (lowest prices), customers need to co-locate with the largest number of ISP networks. • Benefits: Low cost way to reach all internet destinations on a cost per Mbps basis. 1 2 3 Public Peering Private Peering 1 2 3 Phase Phase Phase
- 14. Confidential – © 2016 Equinix Inc. Equinix.com 14 Peering Essential #4
- 15. Confidential – © 2016 Equinix Inc. Equinix.com 15 Understand the cost and flexibility of campus vs. distributed peering Distributed Peering Transit or Transport Transit or Transport Transit or Transport Campus Peering • Peers are colocated among multiple data centers distributed within a metro area • Metro transport cost is factored into customer IX port price • Peers are colocated within the same data center campus or building • Customer IX port price does not need to factor in cost of transport • Strength More choices of data center provider • Weakness o Higher cost structure = higher price ($6,500 for 100G) o Requires a switch per data center (cost + complexity + failure) o Transport between data centers (cost) o No ability to move to private peering o Fewer choices of transit providers • Strength Lower cost model = lower price ($4,000 for 100G) Requires less networking equipment No transport connections needed Easily offload larger flows to private peering (PNI) Offers maximum choice of transit providers • Weakness o Less choice of data center provider Peering Essential #4 Data Center A Data Center B Data Center C
- 16. Confidential – © 2016 Equinix Inc. Equinix.com 16 Peering Essential #5
- 17. Confidential – © 2016 Equinix Inc. Equinix.com 17 Plan for private peering traffic to outgrow public peering traffic Private Peering 90% Public Peering 10% Public vs. Private IP Bandwidth @ Equinix* Private Peering Delivers Highly Scalable Bandwidth • For many networks private peering can be 9X larger traffic volume than public peering* • Private peering allows customers to change networking technologies independent of the Internet Exchange provider • Expect private peering traffic to grow at roughly a 20% CAGR Selection factors in a peering location • Campus peering model (vs. distributed) • Number of peers in the campus Implications • Choosing the wrong peering location can result in costs of $1,500 per connection vs. $350 • Customers are limited to the functionality supported by the IX platform * Source: Equinix study Peering Essential #5 Worldwide, 9x more IP traffic is peered privately than currently passes over all public IXs*
- 18. Confidential – © 2016 Equinix Inc. Equinix.com 18 So why Equinix for peering? Equinix hosts the largest private peering ecosystems worldwide
- 19. Confidential – © 2016 Equinix Inc. Equinix.com 19 IP Transit IN THE BEGINNING THERE WAS
- 20. Confidential – © 2016 Equinix Inc. Equinix.com 20 1000+ Equinix has a massive ecosystem of IP Transit Providers average number of networks in Equinix’s top 10 data center campuses 100+ 150 networks globally data centers globally Equinix offers access to hundreds of Transit providers offering low-end competitive pricing
- 21. Confidential – © 2016 Equinix Inc. Equinix.com 21 Equinix’s network-dense campuses minimizes transit costs Note: Assumes 400Mbps Commit in New York. Source: Telegeography $3.82 $0.94 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Transit price in general market Transit price at Equinix $perMbps Transit pricing at Equinix is much lower than the general market • The density of network service providers that Equinix has built increases competition among those providers. • The presence of key Internet Exchanges exerts a downward pressure on Transit Prices • As a result of the competitive pressures, transit pricing for Equinix customers can be as much as 75% less than in the general market. Transit at Equinix can be 75% lower than the general market
- 22. Confidential – © 2016 Equinix Inc. Equinix.com 22 Regional Median vs lowest local Transit prices in Mbps, Q1/Q2 2015*. Network density & IX Presence drives Competitive Transit pricing *Source: Telegeography IPT Stats Series and IP Transit Pricing Database, based on 10GbE / 10Gbps Committed Data Rate. NY $0.66 FR $0.3 LD $0.3 SP $9.0 DX $10 SG $2.0 SY $7.0 $1.47 Median $1.39 Median $1.42 Median $22.30 Median $6.45 Median HK $2.95 $6.2 Median $27 Median $56.50 Median
- 23. Confidential – © 2016 Equinix Inc. Equinix.com 23 Summing it all up...
- 24. Confidential – © 2016 Equinix Inc. Equinix.com 24 Transit: By bringing together over 1,150 network carriers globally, Equinix creates the most dense network ecosystems. The resulting competitive pressures among them significantly drives down costs for transit buyers. Public Peering: Equinix operates or partners the leading Internet Exchanges worldwide, giving you access to the largest peering communities in all key locations. Private Peering: Equinix hosts the largest number of ASNs in independant carrier-neutral co-location space. This minimizes the cost of private peering by providing a low-cost platform that scales beyond IX speeds. Campus peering: Equinix has the largest set of global peering campuses in the world which keeps peering costs low by making peers typically just a cross connect away. The best IP Transport solutions are a blend, requiring access to a full and competitive choice of services:
- 25. Confidential – © 2016 Equinix Inc. Equinix.com 25 Public Peering— Internet Exchange Access to EIX Internet Exchange or partner IX. Public Peering offers low price aggregated peering and QoS. Private Peering— Cross Connect Access to 1,150+ Networks + ASNs via cross connect. For larger throughput BGP sessions, Private Peering offers lowest costs, highest QoS and Security. IP Transit— Cross Connect IP Transit may be the only option or might be a cost-reduction strategy in EU and USA. QoS is “best effort”. Equinix hosts all key global competitive IP Transit providers, offering maximum choice of IP transport options. Public Internet Public Internet Mobile Network Operator IBX Campus Metro Cloud Services Cloud Provider IT ServicesCDM Network & Services Mobile Services Network Operator A full and competitive choice of services
- 26. Confidential – © 2016 Equinix Inc. Equinix.com 26 Whatever the best and most competitive IP Transport strategy for your organization… Public or Private Peering or Transit …Equinix offers it worldwide
- 27. Confidential – © 2016 Equinix Inc. Equinix.com 27 Case Studies and Selected Peering Member List
- 28. Confidential – © 2016 Equinix Inc. Equinix.com 28 Netflix leverages Equinix 100G IX to deliver reliable video globally “As video usage continues to grow exponentially on the Internet, its robustness relies on continual improvement of public Internet Exchange Platforms such as the Equinix Internet Exchange. The massive scalability that a 100G-capable platform provides leads to greater efficiency and helps us continue to deliver a great Netflix experience to our members around the world.” David Temkin Director of Global Networks
- 29. Confidential – © 2016 Equinix Inc. Equinix.com 29 Hurricane Electric leverages public and private peering across Equinix’s global footprint “As the world’s largest IPv6 network, Hurricane Electric is focused on providing our customers with the highest quality transit service at the lowest price across North America, Asia, and Europe. To keep our costs low and reduce network latency, Hurricane makes extensive use of Equinix’s globally deployed campus peering environments which allows us to interconnect with companies we need to, either through their Internet Exchange platform or through private interconnection.” Mike Leber President
- 30. Confidential – © 2016 Equinix Inc. Equinix.com 30 Selected Peers @ Equinix* • Adobe Systems • Akamai Technologies • Amazon.com • Apple Inc • Bell Canada • Blue Coat Systems, Inc • BrightRoll, Inc. • Broadview Networks • BT • CDNetworks Inc. • Charter Communications • Cisco Systems, Inc. • CloudFlare • DataPipe • Deutsche Telekom • Dropbox • eBay Inc. • EdgeCast Networks, Inc. • Etisalat • Facebook • Foursquare • Frontier Communications • Frontier Networks • GlobeNet • Google Inc. • GTT Communications • Hibernia Networks • Hurricane Electric • Integra Telecom • Intercloud • Internap (formerly Voxel) • Interoute • IX Reach - IIX • KPN • Limelight Networks • Linkedin • Microsoft • Netflix • Neustar • NTT Communications • Orange Business Services • OVH • Pacnet • Pandora Media, Inc • PCCW Global • Peak Web Hosting • PEER 1 Hosting • PenTeleData • Priceline.com • Quantcast • Rackspace • Rocket Fuel Inc. • Rogers Cable • Salesforce.com • Shaw Cablesystems • Sirius Telecom • SoftLayer Technologies, Inc. • Suddenlink Communications • Swisscom • Telecom Italia Sparkle • Telekom Malaysia Berhad • Transtelco • TransTelecom • TripAdvisor LLC • tw telecom • Twitter, Inc. • US Signal • Ustream, Inc. • Valve Corporation • Verisign • Verizon Cloud • Vodafone GlobalNet • Walmart.com • WebEx Communications • Wikimedia Foundation • Windstream Communications • XMission • XO Communications • Yahoo! • Zayo • Zynga Game Network, Inc. Source: Peering DB – June 2015
- 31. Confidential – © 2016 Equinix Inc. Equinix.com 31
Editor's Notes
- #4: Access to the WORLD'S LARGEST INTERNET EXCHANGES (PUBLIC PEERING)
- #8: APAC, MENA, LATAM and Africa are important areas representing future business opportunity due to huge populations and dramatic increase in Internet use. APAC IP traffic already exceeds USA & EU. LATAM will do so in 5- 7 years at current growth. [they have the population/demand, etc.]
- #11: .
- #19: THE LARGEST COLLECTION OF DIRECTLY PEERED ASNs (PRIVATE PEERING) in strategically located IBXs and Campuses.
- #21: Access to all the world's most COMPETITIVE IP TRANSIT PROVIDERS
- #24: The good news? Equinix is all about unlocking global markets and creating mutually supportive ecosystems that eliminate a lot of that complexity. And we do that by offering more choice, access, and opportunity.
- #26: How do you deal with increasing IP traffic, falling Transit prices, restricted peering and huge regional variations? Is cost, performance or control the key factor for you? Deciding which of these three options is optimal is easy as an Equinix customer —Equinix provides every option under one roof. Bottom line: Equinix is home of the true IP ecosystem.