Peering BOF III William B Norton Co-Founder Chief

Peering BOF III William B. Norton Co-Founder, Chief Technical Liaison Equinix Inc. <wbn@equinix. com> NANOG 19 DC Washington,

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 wbn@equinix. com

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 B IXN A X IXW Y A rolls 5, 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 X IXE Y IXS C Transit Provider Y D

Transit Provider X A A A B IXN A B B B X IXW Y AB rolls 3, rolls 5, Pays Transit on others to IXE(3*$1000) Going squares Receives revenue others squares (8*$1000) Pays Transit on on 6 squares (6*$2000) $12, 000 - $3, 000 = $9, 000 Receives revenue on 4 squares (4*$2000) $8, 000 - $8, 000 = $0 X IXE Y IXS C Transit Provider Y D

Transit Provider X A A A B IXN A B B B rolls ABC rolls 6, rolls 5, 3, Pays Transit. Can get squares (3*$1000) on others to IXE Can get to IXW, likes IXS X IXW YC C Receives revenue others squares (8*$1000) Pays Transit on on 6 squares (6*$2000) Pays $12, 000 on$3, 000 = $9, 000 Transit - others squares (11*$1000) Receives revenue on 4 squares (4*$2000) 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 B IXN A B B B rolls ABC rolls 6, rolls 5, 3, D to IXE Pays Transit. Can get squares (3*$1000) on others rolls 1, Can get 6 squares IXS Receives revenue others heading to IXE Pays Transit entrantsquares (6*$2000) Late on onto IXW, (8*$1000) Pays Transit on others squares (11*$1000) X IXW YC C $12, 000 $3, 000 = $9, 000 Receives revenue on 4 squares (4*$2000) Pays Transit- on others squares (17*$1000) Receives revenue on 4 squares (7*$2000) $8, 000 - $8, 000 = $0 Receives revenue on 2 squares (2*$2000) $14, 000 - $11, 000 = $3, 000 $4, 000 - $17, 000 = -$13, 000 C C C IXS C Transit Provider Y C X IXE Y D 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 B IXN A B B A XA IXW YC C rolls ABC rolls 6, 3, rolls 5, 3, A rolls X D to IXE 1, Pays Transit. Can get squares (3*$1000) on others rollsto IXW Attaches IXS IXE Canon ontosquares (6*$2000) get 6 IXW, (8*$1000) Receives revenue others heading to IXE Pays Transit on others squares (13*$1000) Transit entrant squares Late on others squares (11*$1000) Pays $12, 000 - $3, 000 = $9, 000 Transit Y Receives revenue on 4 squares (4*$2000) Pays Transitrevenue onsquares (17*$1000) Receives on others 9 squares (9*$2000) Receives revenue on 4 squares (7*$2000) $8, 000 - $8, 000 = $0= $5, 000 Receives$18, 000 -on 4 squares (2*$2000) revenue $13, 000 $14, 000 - $11, 000 = $3, 000 $2, 000 $17, 000 C – split costs? Wants to-peer with = -$15, 000 YES: -$1, 000 + both lose a turn Neither has to pay transit to each other! C C C IXS C Transit Provider Y C C D D

Transit Provider X A Position B A A A B B B 9 Revenue squares A A IXN B B A 1 lost turn B Peering w/C B A reduced cost $8000/turn B A rolls 3, ABC rolls 6, 2, rolls. B rolls 6, A 5, rolls XA XB D to IXEIXW 1, Pays Transit. Can get squares IXE*IXN on others rollsto(3*$1000) Attaches to IXS IXW IXE Canon ontosquares (6*$2000) get 6 IXW, (8*$1000) Receives revenue others heading to IXE Pays Transit on others squares (13*$1000) Transit entrant others squares (21*$1000) Late. Transit on squares (11*$1000) Pays on$3, 000 = $9, 000 Transit Y $12, 000 others squares Receives revenue on 4 squares (4*$2000) YC Pays Transitrevenue onsquares (17*$1000) Receives -revenue 4 squares (7*$2000) Receives on others 8 squares (8*$2000) on 10 squares (10*$2000) Receives revenue on $8, 000 - $8, 000 = $0== (2*$2000) Receives$16, 000 -on 4 squares -$1, 000 revenue - $21, 000 $3, 000 $20, 000 $13, 000 $14, 000 - $11, 000 = $3, 000 C $2, 000 -peer with CA – split Wants toto$17, 000 = -$15, 000 costs? Wants peer with – split costs? YES: -$1, 000 both lose aoff, NO: You pissed me turn Neither hasif $0 & transit to each other Yes: to pay B lose both turns Both walk away C C C IXS C Transit Provider Y C C D 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 At Max: 100 Mbps@$1000/mo $10/Mbps/mo 1000 Mbps@$2000/mo $ 2/Mbps/mo Source: Qwest/L 3 quotes for OC-3 Transit@$60 K/mo=$388/Mbps/mo Equinix Gig. E 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 (wbn@equinix. com) – “Interconnection Strategies for ISPs” – “Peering Decision Tree” – Soon: “Content Peering” • NANOG Survey Form – if you want Peering BOFs • Let’s talk over BEER(s)!