Agenda for the Day · Packet Clearing House TunIXP Workshop on IXPs April 29-30, 2013 Tunis Bill Woodcock Executive Director Packet Clearing House

Agenda for the DayMorning: Overview of Internet economic building blocksAfternoon: How to translate Internet growth into overall economic growth, follow-up on issues of interest, Q&A

Packet Clearing House

TunIXP Workshop on IXPsApril 29-30, 2013

Tunis

Bill WoodcockExecutive Director


ISP Lifecycle: Simple Aggregator

Single Transit Provider

Customers

ISP Network

IXPs

ISP Lifecycle: Redundancy and LCR

Redundant Transit Providers

Customers

ISP Network

IXPs

ISP Lifecycle: Local Peer


Customers

ISP Network Single IXP

IXPs

ISP Lifecycle: Backbone Network


Customers

ISP Network MultipleIXPs

IXPs


Hot Potato Routing


Red Customer

Red NSPNetwork

Green Customer

Green NSPNetwork

IXP

IXP


Hot Potato Routing


Red Customer

Red NSPNetwork

Green Customer

Green NSPNetwork

IXP

IXP

Red Customer sends to Green Customer via Red NSP


Hot Potato Routing


Red Customer

Red NSPNetwork

Green Customer

Green NSPNetwork

IXP

IXP

Red NSP delivers at nearest IXP


Hot Potato Routing


Red Customer

Red NSPNetwork

Green Customer

Green NSPNetwork

IXP

IXP

Green NSP backhauls from distant IXP


Hot Potato Routing


Red Customer

Red NSPNetwork

Green Customer

Green NSPNetwork

IXP

IXP

Green ISP delivers to Green Customer


Hot Potato Routing


Red Customer

Red NSPNetwork

Green Customer

Green NSPNetwork

IXP

IXP

Green Customer replies via Green NSP


Hot Potato Routing


Red Customer

Red NSPNetwork

Green Customer

Green NSPNetwork

IXP

IXP

Green NSP delivers at nearest IXP


Hot Potato Routing


Red Customer

Red NSPNetwork

Green Customer

Green NSPNetwork

IXP

IXP

Red NSP backhauls from distant IXP


Hot Potato Routing


Red Customer

Red NSPNetwork

Green Customer

Green NSPNetwork

IXP

IXP

Red NSP delivers to Red Customer


Green Customer


Hot Potato Routing

Red Customer

Red NSPNetwork

Green NSPNetwork

IXP

IXP

Red Network is responsible for its own costs


Green Customer


Hot Potato Routing

Red Customer

Red NSPNetwork

Green NSPNetwork

IXP

IXP

Green Network is responsible for its own costs


Green Customer


Hot Potato Routing

Red Customer

Red NSPNetwork

Green NSPNetwork

IXP

IXP

Symmetry: Fair sharing of costs

For any two parties who wish to exchange traffic, there must be a pair of exchanges, one near each party.

The efficiency of the Internet depends upon this principle:

Countries which haven’t yet built Internet Exchange Points disadvantage themselves, and export capital to countries that already have.

The Corollary:


Distribution of IXPsHalf of all countries still have no IXP, while others have dozens.


Global Bandwidth Production

8T

7T

6G

5G

4T

3T

2T

1T


Bandwidth Production per IXP

1.25T

1T

750G

500G

250G


Number of IXPs

0

50

100

150

200

250

300

350

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010


Number of IXPs

0

50

100

150

200

250

300

350

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

About one every three weeks


Room

Growth of IXP Physical Plant


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Effect of an IX on Transit PurchaseSometimes people assume that the introduction of low-cost bandwidth from a local IX is a literal substitute for high-cost bandwidth from existing transit providers, and that this will result in a reduction of total costs. This is not true, and stems from trying to view ISP economics in terms other than APBDC and exponential growth.


Effect of an IX on Transit PurchaseIn fact, transit contracts tend to be constrained to fixed terms, are not subject to cost-effective early cancellation, and are time- and labor-intensive to initiate.


Effect of an IX on Transit Purchase

Transit Bandwidth Prior to Domestic Peering

Unused capacity 55mbps

International traffic70mbps

Domestic traffic30mbps

155mbps

1gbps


Effect of an IX on Transit Purchase

Transit Bandwidth After Domestic Peering


International traffic70mbps

Domestic traffic30mbps

155mbps

1gbps



The Virtuous Cycle of UpgradesThe Internet has doubled in size every ten and a half months for the past thirty years.Keeping up with this exponential growth is a process of addressing each revealed bottleneck and moving on to the next in a continuous virtuous cycle of upgrades, eventually returning to each bottleneck many times.


The Virtuous Cycle of Upgrades



InternetExchange

Point

Regulatory,Policy and

Governance

LocalLoop

NationalBackbone

InternationalCables

CriticalInfrastructure



InternetExchange

Point


Governance

LocalLoop

NationalBackbone

InternationalCables


IXPs provide a domestic source of

Internet bandwidth that

is not dependent on

International transit or

transport.



InternetExchange

Point


Governance

LocalLoop

NationalBackbone

InternationalCables


Local loops (or “last miles” of

copper, fiber, or wireless must be

available to connect

networks to customers and resources like

IXPs, critical infrastructure,

and international cables.



InternetExchange

Point


Governance

LocalLoop

NationalBackbone

InternationalCables


Long-haul backbone fiber

must be available to

interconnect IXPs in one city with customers

in another. They form the web of circuits between

a country’s cities.



InternetExchange

Point


Governance

LocalLoop

NationalBackbone

InternationalCables


International cable systems must be available for domestic ISPs to bring traffic in from foreign IXPs, and for foreign ISPs to receive traffic from domestic IXPs.



InternetExchange

Point


Governance

LocalLoop

NationalBackbone

InternationalCables


Critical infrastructure like root and ccTLD nameservers, CERTs, andlaw enforcementintercept must be speedy enough to keep up with the rest of the network.



InternetExchange

Point


Governance

LocalLoop

NationalBackbone

InternationalCables


The public policy environment must support and encourage new market entrants and competition among existing players to ensure continuous price/performance improvement.



InternetExchange

Point


Governance

LocalLoop

NationalBackbone

InternationalCables


...by which time we’re ready to

upgrade our IXP again.

And so on, around the

circle.


Interface Speeds ConstrainedFunding for optoelectronic physics basic research was withdrawn in the wake of the 2001 telecom investment collapse.

There’s a approximately four-year productization pipeline, so the effect became clear from about 2005 onward.

1

10

100

1,000

10,000

100,000

1,000,000

10,000,000

Jan-92 Dec-93 Jan-96 Dec-97 Jan-00 Dec-01 Jan-04 Dec-05 Jan-08 Dec-09 Jan-1292 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

10 tbps

1 tbps

100 gbps

10 gbps

1 gbps

100 mbps

10 mbps

6 gbps / year linear

115% annual exponential


Thanks, and Questions?

Copies of this presentation are available in PDF format.

Bill WoodcockExecutive Director

Packet Clearing [email protected]+1 415 831 3103

This presentation is ©1993-2013 by Packet Clearing House CC BY-NC-SA

Agenda for the Day · Packet Clearing House TunIXP Workshop on IXPs April 29-30, 2013 Tunis Bill Woodcock Executive Director Packet Clearing House

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