Peering Breakeven Analysis White Paper

Thu Jun 28 18:46:43 UTC 2001

Hi all -

After about 6 months, I've finally finished a presentable draft of a 
community white paper I'd like to share with a handful of interested folks.

The draft is titled "The Peering Breakeven Analysis Graph: An ISP Peering 
Cost Savings Analysis" and finishes up the research I've done with the 
Peering Coordinator Community. It complements the "Internet Service 
Providers and Peering" white paper that I know many of you have read and 
focuses on its business case for peering that Bill St. Arnaud cited at a NANOG.

Here is the Abstract:
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During the recent economic turmoil, Internet Service Providers are looking 
for ways to reduce their costs of providing Internet services. Chief among 
their costs are telecommunications costs, the cost of getting traffic to 
the other networks of the Internet.

Discussions with ISP Peering Coordinators identified Internet Service 
Provider (ISP) "Peering" as one of the most effective methods of reducing 
telecommunications costs for ISPs. The ISP Peering Coordinator's job is to 
establish and effectively manage this interconnection between ISPs. Goals 
include maximizing efficiency and minimizing costs of interconnect costs. 
As demonstrated in the "Internet Service Providers and Peering " earlier 
work, the job requires a rare combination of technical and business acumen 
with good people and negotiating skills.

This paper introduces the ISP Peering Coordinators terminology and the 
tools and analysis typically used. We demonstrate these with a specific 
implementation and generalize them in the form "Peering Break Even Analysis 
Graph". This is the business case for Internet Service Provider peering 
based on current practices and market prices.
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If you can help and have the inclination to read it (it is only six pages) 
and comment, please send me e-mail: wbn at equinix.com

Thanks -

Bill

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William B. Norton	Co-Founder and Chief Technical Liaison		Equinix
wbn at equinix.com							650.315.8635