Peering 101 and the peering simulation game
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The document discusses the fundamentals of internet peering and transit, detailing definitions, motivations for peering, and the economic benefits associated with it. It presents a peering simulation game aimed at providing practical insights into the business relationship of internet service providers (ISPs) and highlights the importance of cost considerations, routing management, and competitive strategies in the peering ecosystem. Additionally, the document features key definitions, cost structures, and potential game scenarios to illustrate the complexities of peering dynamics.
Peering 101 and the peering simulation game
- 1. Peering 101 and the Peering Simulation Game William B. Norton Executive Director, DrPeering Excerpts from The Internet Peering Plavbook: Connecting to the Core of the Internet AfPIF 2 Accra, Ghana August 8, 2001
- 2. The New Book Playbook lOyrs in the making $500K Travel 500Kfreq flyer miles Every continent Every Internet Ops Forum What is your working definition Of Internet Peering? Of Internet Transit? What are the motivations to peer or not? What are the peering processes? Who do you peer with? Connecting to the Core of the Internet Who are the players? What are the Peering Tactics? WHEN DOES PEERING MAKE SENSE? TRhtt EiTiiasiTiSiTDg Etstosplteiim feor After White Paper walkthroughs Resources to share back to the community CD@ydl (D§)inni|p(SJD^inii From the Author of the Internet Peering White Papers William B. Norton
- 3. The Global lnt*m*t Pwfing Eco+ywunr. ScmefSP P*<rr? Miybock T.Ki.10 F volution erf Initio*. FWnoq otMt%H Tr.ir.wi vwot. Mf^dbaV. Kow^iH^h004**riliilw.ii^l FjKhart^l^Qipi Bluff hSUCS l Y a ^ M«nix4.*irr.
- 4. DrPeering.net Peering Resources Internet Service Providers and Peering Internet Transit Pricing Historical and Projections A Business Case for Peering Modeling the value of an Internet Exchange Point About the White Paper Process NANOG History The Art of Peering - The Peering Playbook Peering: Motivations to Peer The Art of Peering - The IX Plavbook A Study of 28 Peering Policies Chief Technical Liaison Peering Simulation Game Ecosystems: 95th Percentile Measurement for Peering: Top 10 Ways to Contact Peering Internet Transit Coordinators Asia Pacific Peering Guidebook Peering: Top 10 Reasons NOT to peer Evolution of the U.S. Peering Public vs Private Peering - the Great Debate Emerging Video Internet Ecosystems The Folly of Peering Ratios European vs US Internet Exchange Points Top 9 IX Selection Criteria Internet DataCenter Build vs Buy Decision Video Internet - The Next Wave of Massive Internet Service Providers and Peering Disruption to the U.S. Peering Ecosystem All freely available
- 5. Peering 101 Connecting to the Edge of the Internet (aka Internet Transit) Connecting to the Core of the Internet (aka Internet Peering) The Economic Benefits of Peering IXP Operators - Let's talk off-line - lots of material to share Defs: Internet is a..
- 6. Connecting to the Edge of the Internet • Definition: Internet Transit is the business relationship whereby an Internet Service Provider provides (usually sells) access to the global Internet. • Definition: An Internet Service Provider (ISP), also called a "Transit Provider/' is an entity that provides (usually sells) access to the Internet. Transit Service Model
- 7. nternet Transit Service Mode Routing Advertisements Graphical notation
- 8. Equivalent Notation for Transit $ Metering-95 t h percentile
- 9. Internet Transit Billing Calculation (95th Percentile Measurement) Metered Internet Transit Service l Upstream (Transit) Provider 5-minute samples to •. • s . End Of Month Sort highest 95th Percentile Sample (Mbps) * Internet Transit Price ($/Mbps) lowest = Monthly Cost of Internet Transit Trends: Transit Price Drops
- 10. Source: DrPeering.net S/Mbps Internet Transit Prices (1998-2015) $1,400 $1,200 $12O0/MDpS 51.000 $800 $600 $400 $200 S1207Mbps S12/Mbps $3,25^1^ S0.94^lbos $0 i i 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 That is Internet Transit: Simple
- 11. Connecting to the Core of the nternet Internet Peering
- 12. Why Peering? "Internet Transit is so inexpensive, why do we need anything else?" Monthly Transit Fees Transit Transit Volume Price Growth Drops year 1 year 2 year 3 year 4 time Where is that traffic going?
- 13. Global Internet destination) Internet Transit Service Costs of Peering Direr* 2)Cc*ocation 3) Equipment 4) Peering Fees Internet Transit Service CXhor doslintffons Direct interconnect=peering
- 14. nternet Peering Definition Definition: Internet Peering is the business relationship whereby two companies reciprocally provide access to each other's customers. Peering Peering I WestNei EastNet MidNet Rouling Table Routing Table Routino Table o o o • # o o (after peering) (after peering) (after peering)
- 15. nternet Peering notation Of-0 3 key notions about peering
- 16. 3 Key points about Internet Peering 1) Internet Peering is not a transitive relationship 2) Internet Peering is not a perfect substitute for nternet Transit 3) Internet Peering is typically settlement-free Peering Peering 1 . . WestNel E a si Net Routing Table MidNet Routing Table Routing Table o (after peering) (after peering) (alter peering) Why Peer? 5 Motivations..
- 17. Top Five Motivations for Peering Reduce Transit Costs Better End-User Experience Control Over Routing Make more $$ - Usage Based Billing Marketing Benefits of Peering Comes down to business: Let's talk $$$ motivation
- 18. The Business Case for Peering Colocation $1000Ano Peering Port $2000/mo 10G Transport $6000/mo 10G Equipment S2000/mo Peer Peer -» Source: 2010 DE-CIX Member Meeting discussions That is Internet Transit: Simple
- 19. Mbps Peerin Cost ng 100 $110.00 per Mbps $55.00 per Mbps 200 300 $36.67 per Mbps Cost of Peering 400 $27.50 per Mbps 500 $22.00 per Mbps Assumptions Far 600 $18.33 per Mbps Transport into IX: $6,000 per month 700 $15.71 per Mbps Colocation Fees: $1,000 per month 800 $13.75 per Mbps Peering Fees: $2,000 per month Equipment Costs: $2,000 per month I 900 $12.22J per Mbps Total Cost of Peering: $11,000 per month 1000 $11.00 per Mbps 1100 $10.00 per Mbps 1200 $9.17 per Mbps 1300 $8.46 per Mbps 1400 $7.86 per Mbps "If you can peer 1000Mbps for free, but it costs 1500 $7.33 per Mbps You $11,000 per month to build into the 1600 $6.88 per Mbps Internet Exchange Point, the cost of peering is $ll,000/1000Mbs=$10/Mbps." 1700 $6.47 per Mbps 1800 $6.11 per Mbps 1900 $5.79 per Mbps 2000 $5.50 per Mbps 2100 $5.24 per Mbps
- 20. $/Mbps Peering vs Transit Assumptions Far Transport into IX: $6,000 per month Colocation Fees: $1,000 per month Peering Fees: $2,000 per month Equipment Costs: $2,000 per month Total Cost of Peering: $11,000 per month Peering Break-Even Point Unit Peering Cost = Price ol Transit Effective Peering Bandwidth Transit Price Effective Peering Range
- 21. Some context: The Internet Peering Ecosystem Internet viewed as a Global Internet Peering Ecosystem
- 22. Def: Global Internet Peering Ecosystem consists of a set of interconnected internet regions (countries). Global Internet Peering Ecosystem Characteristics of these Ecosystem Organisms?
- 23. Ecosystem Member: Tier 1 ISP Def: A Tier 1 ISP is an ISP that has access to the ENTIRE Internet Region Routing Table solely via Free Peering Relationships (Doesn't buy transit from anyone to reach any destination in the Internet Region.) Motivation: Is NOT motivated to Peer in region to reduce transit fees, Is NOT motivated to peer with anybody else. Behavior: "Restrictive" Peering *def: Policy
- 24. Ecosystem Member: Tier 2 ISP Def: A Tier 2 ISP is an ISP that has to purchase Transit to access some part of the Internet Region. Motivation: Is motivated to Peer in region to reduce transit fees. Behavior: "Open" Peering or "Selective" Peering Policy Active in Peering Forums
- 25. Content Providers Def: A Content Provider focuses on content development and does not sell access to the Internet. Motivation: SLAs w/well known ISP Behavior: "No Peering" Policy
- 26. Internet Peering Ecosystem Traffic and $ flow up Active Peering Groups Peering Forums Content Providers IX Meetings Test: Apply defs.
- 27. 2) Definition of Peering: Quiz 4 Tier 1 ISP X 1) Definition of Transit: Content Provider C 3) Definition of an "Open" Peering Policy: 4) Definition of a "Selective" Peering Policy: _ 5) Definition of a "Restrictive" Peering Policy:
- 28. Apply Defs: Peering Dynamics & Motivations No, like $, & I Like customer B Synch Point: You have all the definitions needed to predict behavior in the Peering Ecosystem.
- 29. The Peering Simulation Game Let's exercise these definitions
- 30. The Players Internet Service Provider A - Peering Coordinator Internet Service Provider B - Peering Coordinator Internet Service Provider C - Peering Coordinator Internet Service Provider D - Peering Coordinator
- 31. 3 Helpers Transit Provider X Transit Provider Y Exchange Point Operator
- 32. ran it Provider The Peer ng Gam B X X D Transit Provider Y:
- 33. 3 Rules 1. Goal: Maximize bank holdings. Make money by acquiring customers and reduce transit costs by peering 2. Play: Roll the dice and expand your network by selecting that many adjacent "squares" of customers ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ M for each customer square you own ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ f f l f o r each square of traffic that other ISPs own 3. If at Exchange Point, two ISPs can negotiate peering: - $2000 recurring cost and loss of 2 turns, ISPs negotiates who covers the costs of peering - Peering ISPs do not have to pay transit for each others squares starting the next turn Q U ^ round.
- 37. D rolls 1, Late entrant heading to IXE YC Receives revenue on 2 squares (2*$2000) Pays Transit on others squares (17*$1000) $4,000 - $17,000 = -$13,000 D D Transit PrxbviderY:
- 38. Scoreboard after Round 1 ISP A: $9,000 ISP B: $0 ISPC: $3,000 ISPD: -$13,000
- 39. A rolls 3, Attaches to IXW Receives revenue on 9 squares (9*$2000) Pays Transit on others squares (13*$1000) $18,000 - $13,000 = $5,000 Wants to peer with C - split costs? YES: -$1,000 + both lose a turn Neither has to pay transit to each other! Transit PrxDviderY:
- 40. ransit Provider ffffff A Position B B B B 9 Revenue squares 1 lost turn Peering w/C reduced cost $8000/turn B rolls 6, Attaches to IXE*IXN Receives revenue on 10 squares (10*$2000 Pays Transit on others squares (21*$1000) $20,000 - $21,000 = -$1,000 Wants to peer with A - split costs? NO: You pissed me off, Yes: if $0 & B lose both turns Both walk away Transit PrxDviderY:
- 41. Let's play! WELCOME TO BILLAND 4 ISPs that have never played before Open Board $35,000 VC Funding ^ #^ i ¥ = $iooo — , .$25,000 VC Funding . >1UUU We want to hear your fhougnt process ana peering negotiations Winner- prize WINNER: At 5:25?PM we will stop and assume that every roll was a "3" from that point on out to 12 rounds..
- 42. Play the Peering Simulation Game... I'M 1 J Worksheet i & • • » to* n o r IACW(<*I • : : O N l ' V V W I V i l ' 1 If • m»#-4#T»»^ 1 • • Worksheet