NANOG67 - Tipping point of community and sponsor bashing?

Stephen Sprunk stephen at sprunk.org
Sun Jun 26 20:59:47 UTC 2016


On 2016-06-18 12:54, Brandon Ross wrote:
> On Fri, 17 Jun 2016, Eric Kuhnke wrote:
> 
>> What Randy just wrote is exactly the point I was trying to make in my 
>> last
>> email. Some real estate facility owners/managers have got into the 
>> mistaken
>> mindset that they can get the greatest value and the most monthly 
>> revenue
>> from the square-footage of their building by charging additional MRC 
>> XC
>> fees to the tenants of the building.
> 
> There are some VERY sucessful companies that would strongly disagree 
> with you.
> 
>> When in fact the opposite is true, and we need a concerted community 
>> effort
>> to lobby every IX real estate owner with this fact: Your real estate 
>> will
>> be MORE valuable and will attract a greater critical mass of carriers,
>> eyeball networks, CDNs, huge hosting providers/colo/VM, etc if you 
>> make the
>> crossconnects free.
> 
> But then why would we want to do that?  If you are correct and doing
> so would raise the value of the real esatate, doesn't that mean that
> the building managers would be able to charge operators a whole lot
> more than they are able to today, in aggregate?

If the price of XC drops to ~zero, then tenants are going to do a lot 
more of it and thereby get more value from the IX, which means people 
will be _willing_ to pay more for that real estate, rather than 
complaining about XC price-gouging.  It's as much perception as it is 
math.

OTOH, if prices climb to unreasonable levels, then more space will 
(eventually) be made available, e.g. by pushing non-IX tenants out of 
the building, by laying ample dark fiber to a nearby building for 
expansion (but still ~free XC) or by a competitor appearing.

The problems come with expansion that is _not_ nearby, i.e. XC can no 
longer be ~free, yet the operator still tries to pretend it's a single 
facility.  There are plenty of folks in the business of transporting 
bits over long distances; IMHO, an IX shouldn't be one of them.

S

-- 
Stephen Sprunk      "Those people who think they know everything
CCIE #3723         are a great annoyance to those of us who do."
K5SSS                                             --Isaac Asimov



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