Peering and Network Cost
dave.taht at gmail.com
Thu May 21 16:59:09 UTC 2015
On Wed, Apr 15, 2015 at 10:50 AM, Max Tulyev <maxtul at netassist.ua> wrote:
> Hi Roderick,
> transit cost is lowering close to peering cost, so it is doubghtful
> economy on small channels. If you don't live in
> Amsterdam/Frankfurt/London - add the DWDM cost from you to one of major
> IX. That's the magic.
> In large scale peering is still efficient. It is efficient on local
> traffic which is often huge.
Two things I am curious about are 1) What is the measured benefit of
moving a netflix server into your local ISP network
and 2) does anyone measure "cross town latency". If we lived in a
world where skype/voip/etc transited the local town only,
what sort of latencies would be see within an ISP and within a
cross-connect from, say a gfiber to a comcast?
Once upon a time I'd heard that most phone calls were within 6 miles
of the person's home, but I don't remember the breakdown of those call
percentages (?), and certainly the old-style phone system was
achieving very low latencies for those kinds of traffic.
> On 04/15/15 17:28, Rod Beck wrote:
>> As you all know, transit costs in the wholesale market today a few percent of what it did in 2000. I assume that most of that decline is due to a modified version of Moore's Law (I don't believe optics costs decline 50% every 18 months) and the advent of maverick players like Cogent that broker cozy oligopoly pricing.
>> But I also wondering whether the advent of widespread peering (promiscuous?) among the Tier 2 players (buy transit and peer) has played a role. In 2000 peering was still an exclusive club and in contrast today Tier 2 players often have hundreds of peers. Peering should reduce costs and also demand in the wholesale IP market. Supply increases and demand falls.
>> I thank you in advance for any insights.
>> - R.
>> Roderick Beck
>> Sales Director/Europe and the Americas
>> Hibernia Networks
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