Capacity/transit costs vs growth

Wed May 27 22:53:50 UTC 2015

On 27/May/15 23:36, Jean-Francois Mezei wrote:
> I am looking for some rough estimates of the ratio of capacity
> (equipment) pricing declines versus average increase in end user capacity.
>
> For instance, say end user average capcity usage increases 50% over 3
> years, would the ISP's costs also increase by 50% ? Or would increased
> efficency of equipment result in a 50% decrease in capacity costs
> yielding roughly the same total cost to the service provider ?
>
> So I am looking are some sort of ratio of gross costs
> increases/decreases relative to end user usage increase in usage over time.

To be more accurate with this, you might want to consider what portion
of every part of the overall network is attributed to the costs your
customer burdens you with. This isn't necessarily easy to do, but is
more accurate than thinking of only the box the customer physically
connects to.

You will spend differently in different parts of the network, e.g.,
peering, core, edge, services, e.t.c.

How much of that goes back to (or is caused by) your customers?

Mark.