Peering BOF III
William B. Norton
Co-Founder, Chief Technical Liaison
Equinix Inc.
19
<[email protected]> NANOG
Washington, DC
Rough Agenda for Peering BOF III
7:45 Introduction to the Peering Simulation Game:
pick ISPs, Transit Providers, IXP Operator, rules
8:00 Play Simulation
8:50 Wrap up, post mortem
9:00 Adjourn to bar, meet Peering Coordinators
To facilitate:
1.
2.
3.
4.
5.
Green dots to ID as Company Peering Coordinator
White Paper: Peering Decision Tree
White Paper : Interconnection Strategies
Peering Contact Database exchange
Beer
The Peering Simulation Game
William B. Norton
[email protected]
3 minute Intro to Peering
Transit $$
ISP A
Peering provides routes
only to each
others customers
Upstream
Transit
Provider
ISP B
Transit $$
1) Transit costs big bucks.
(But it is a convenient plug in the wall that says
“Internet  this way”)
2) Peering costs very little and reduces transit costs.
3) Q: Who to peer with and
how to justify costs of peering?
Transit Provider X
A
The Peering Game
B
IXN
X
X
IXW
Y
IXE
Y
IXS
C
Transit Provider Y
D
3 Peering Simulation Game 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
Gain transit revenue of $2000 for each customer square
you own
Pay transit fees of $1000 for 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
Quick round…
Transit Provider X
A
A
A
A
A
B
IXN
A
A rolls 5,
X
IXW
Y
X
Wants to peer w/B – moves to IXN
Pays Transit on others squares (3*$1000)
Receives revenue on 6 squares (6*$2000)
$12,000 - $3,000 = $9,000
IXE
Y
IXS
C
Transit Provider Y
D
Transit Provider X
A
A
A
A
A
B
IXN
A
B
B
B
X
IXW
Y
rolls5,3,
ABrolls
Pays Transit on
others to
squares
Going
IXE(3*$1000)
Receives
revenue
on 6 squares
Pays Transit
on others
squares(6*$2000)
(8*$1000)
$12,000
- $3,000
= $9,000(4*$2000)
Receives
revenue
on 4 squares
$8,000 - $8,000 = $0
X
IXE
Y
IXS
C
Transit Provider Y
D
Transit Provider X
A
A
A
A
A
B
IXN
A
B
B
B
ABrolls
5,3,6,
Crolls
rolls
Pays TransitCan
on others
squares
(3*$1000)
get
to
IXE
Can get to IXW, likes IXS
X
IXW
YC
C
Receives
revenue
on 6 squares
Pays Transit
on others
squares(6*$2000)
(8*$1000)
Pays $12,000
Transit on
others
squares
(11*$1000)
- $3,000
= $9,000(4*$2000)
Receives revenue
on 4 squares
Receives revenue on 7 squares (7*$2000)
$8,000 - $8,000 = $0
$14,000 - $11,000 = $3,000
C
C
C
X
IXE
Y
IXS
C
Transit Provider Y
C
D
Transit Provider X
A
A
A
A
A
B
IXN
A
B
B
B
ABrolls
5,3,6,
Crolls
rolls
D squares
rolls
1,(3*$1000)
Pays TransitCan
on others
get
to
IXE
Canentrant
get
IXW, IXS
Receives
revenue
on to
6 squares
Pays Transit
on others
squares(6*$2000)
(8*$1000)
Late
heading
to IXE
Pays Transit on others squares (11*$1000)
X
IXW
YC
C
$12,000
-on
$3,000
= squares
$9,000(4*$2000)
Receives
revenue
on
4 squares
Pays
Transit
others
(17*$1000)
Receives revenue on 4 squares (7*$2000)
$8,000
- $8,000
= $0 (2*$2000)
Receives
revenue
on 2 squares
$14,000 - $11,000 = $3,000
$4,000 - $17,000 = -$13,000
C
C
C
X
IXE
Y
D
IXS
C
Transit Provider Y
C
D
Scoreboard after Round 1
•
•
•
•
ISP A: $9,000
ISP B: $0
ISPC: $3,000
ISPD: -$13,000
• On to Round 2
Transit Provider X
A
A
A
A
A
B
IXN
A
B
B
A
B
A
XA
IXW
YC
C
3,6, 3,
ABrolls
A 5,
rolls
Crolls
rolls
X
D
rolls
1,
Pays TransitCan
on others
squares
(3*$1000)
gettotoIXW,
IXE
Attaches
to IXW
Can
get
IXS
IXE
Receives
revenue
on
6
squares
(6*$2000)
PaysPays
Transit
on
others
squares
(8*$1000)
Late
entrant
heading
to
IXE
Transit
on others
squares
(13*$1000)
Pays $12,000
Transit
on
others
squares
(11*$1000)
Y
$3,000
=
$9,000
Receives
revenue
4 squares
(4*$2000)
Pays
Transit
on on
others
(17*$1000)
Receives
revenue
onsquares
9 squares
(9*$2000)
Receives revenue on 4 squares (7*$2000)
$8,000
- $8,000
= $0= $5,000
Receives
revenue
4 squares
(2*$2000)
$18,000
-on
$13,000
$14,000
- $11,000
= $3,000
$2,000
$17,000
Wants
to-peer
with =C-$15,000
– split costs?
YES: -$1,000 + both lose a turn
Neither has to pay transit to each other!
C
C
C
D
IXS
C
Transit Provider Y
C
C
D
Transit Provider X
A Position
B
A
A squares
A
A A
B B
B
B
B
9 Revenue
IXN
A1 lost turn
B
Peering w/C
B
A cost $8000/turn
reduced
B
A
3,6, 2,6,
ABrolls
AB5,
rolls
rolls
Crolls
rolls
XA
XB
D
rolls
1,
Pays TransitCan
onAttaches
others
squares
(3*$1000)
gettotoIXW,
IXE
Attaches
IXW
totoIXE*IXN
IXW
Can
get
IXS
IXE
Receives
revenue
on
6
squares
(6*$2000)
PaysPays
Transit
on
others
squares
(8*$1000)
Late
entrant
heading
to
IXE
Transit
ononothers
squares
(13*$1000)
Pays
Transit
others
squares
(21*$1000)
Pays $12,000
Transit
on
others
squares
(11*$1000)
Y
$3,000
=
$9,000
Receives
revenue
4 squares
(4*$2000)
YC
Pays
Transit
on on
others
squares
(17*$1000)
Receives
revenue
on
8
squares
(8*$2000)
Receives
revenue
on
10
squares
(10*$2000)
Receives revenue on 4 squares (7*$2000)
$8,000
- $8,000
= $0==$3,000
Receives
revenue
4 squares
(2*$2000)
$16,000
-on
$20,000
-$13,000
$21,000
-$1,000
$14,000
- $11,000
= $3,000
C
$2,000
-peer
$17,000
=CA
-$15,000
Wants
– –split
Wantstoto
peerwith
with
splitcosts?
costs?
YES:NO:
-$1,000
both lose
turn
You pissed
meaoff,
Neither
hasifto$0pay
each
other
Yes:
& transit
B lose to
both
turns
Both walk away
C
C
C
D
IXS
C
Transit Provider Y
C
C
D
Let’s play
WELCOME TO BILLAND
4 ISPs that have never played before
2 transit providers that have played before
1 Exchange Point Operator that has played before
Open Board
$35,000 VC Funding
We want to hear your thought process and peering
negotiations
Winner - prize
Play Game
Content Peering
Transit $$
Peering provides routes
only to each
others customers
(asymmetric traffic, true,…
But, both companies benefit)
ISP A
Tier 1
Content
Upstream
Transit
Provider
Transit $$
1) Transit costs big bucks.
(But it is a convenient plug in the wall that says
“Internet  this way”)
2) Peering costs very little and reduces transit costs.
3) Q: Who to peer with and
how to justify costs of peering?
Content Peering Financial Model
Peering on Ethernet vs. Transit Costs
Cost per Mbps
$2,500.00
Transit from
Upstream
$2,000.00
$1,500.00
Peering:10/100Mb
ps Port
$1,000.00
Peering on
1000Mbps Port
$500.00
9
7
5
3
1
$0.00
At Max: 100 Mbps@$1000/mo  $10/Mbps/mo
Mbps to Peer
1000 Mbps@$2000/mo  $ 2/Mbps/mo
Source: Qwest/L3 quotes for OC-3 Transit@$60K/mo=$388/Mbps/mo
Equinix GigE Peering Package (LINX/AMS-IX similar)
Beering BOF III Summary
• Cost of peering insignificant relative to long term
savings of transit costs
• Peering Simulator vs. Peering Reality?
• Peering Coordinators
– Green Dot – Willing to talk peering
– Double Green Dot – Willing to buy beer!
– Peering Contact Database – your card w/AS#
• White Papers Available ([email protected])
– “Interconnection Strategies for ISPs”
– “Peering Decision Tree”
– Soon: “Content Peering”
• NANOG Survey Form – if you want Peering BOFs
• Let’s talk over BEER(s)!