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PLNOG16: Public IX is the tip of the Internet Iceberg. The 9:1 PNI rule, Martin Atkinson
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1.
Confidential – ©
2016 Equinix Inc. Equinix.com 1 AMS-IX Ashburn Atlanta Chicago CIXP Dallas DE-CIX ECIX France-IX INEX IXManchester Geneva Hong Kong JPIX Tokyo JPIX Osaka JPNAP Tokyo JPNAP Osaka KleyReX LINX LONAP Los Angeles Melbourne Miami MIX-IT NETNOD New York NL-IX NSW-IX Osaka Palo Alto Paris PTT.br Sao Paulo PTT.br Rio de Janeiro Seattle Silicon Valley SIX SOLIX STHIX SWISS-IX TORIX Toronto Vienna USA Singapore Tokyo Sydney UAE-IX VIC-IX Warsaw Zurich Peering Location Matters
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2016 Equinix Inc. Equinix.com 2 “Platform Equinix”
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2016 Equinix Inc. Equinix.com 3 Equinix Metro Locations Worldwide
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2016 Equinix Inc. Equinix.com 4 DC NY CH DA SV, PA-IX LINX, LONAP, NL-IX DE-CIX, KLEYREX, ECIX, NL-IX SG SY, NSW-IX PTT.BR SP MI TY, JPIX, JP-NAP TO, TORIXSE. SIX HKUAE-IX PA, NL-IX, France-IX ME, VIC-IX PTT.BR RJ OS, JPIX, JP-NAPATLA GRX GRX Equinix Operates or Hosts the World’s Largest Internet Exchanges 22EXCHANGES 27PARTNERS WA, PLIX GRX NETNOD Se, STHIX, SOLIX IXManchester MIX Operate Equinix Internet Exchange with or without hosted partners No Equinix Internet Exchange, only hosted partners
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2016 Equinix Inc. Equinix.com 5 IP Transit IN THE BEGINNING THERE WAS
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2016 Equinix Inc. Equinix.com 6 1200+ Look for locations offering a large choice of IP Transit Providers average number of networks in Equinix’s top 10 data center campuses 145 150 networks globally data centers globally Co-located Transit provider density in any location always drives competitive pricing
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2016 Equinix Inc. Equinix.com 7 Network-dense campuses minimise transit costs Note: Assumes 400Mbps Commit in New York. Source: Telegeography • The presence of an Internet Exchange exerts a downward pressure on Transit Prices • The density of network service providers increases competition among those providers, which also drives Transit Prices down. • As a result of the competitive pressures, transit pricing can be as much as 75% lower than in the general market. Transit pricing can be 75% lower than in local and regional markets
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2016 Equinix Inc. Equinix.com 8 Regional Median vs lowest local Transit prices in Mbps, Q1/Q2 2015*. NSP density & IX Presence drives Competitive Transit pricing *Source: Telegeography IPT Stats Series and IP Transit Pricing Database, based on 10GbE / 10Gbps Committed Data Rate. NY $0.66 FR $0.3 LD $0.3 SP $9.0 DX $10 SG $2.0 SY $7.0 $1.47 Median $1.39 Median $1.42 Median $22.30 Median $6.45 Median HK $2.95 $6.2 Median $27 Median $56.50 Median
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2016 Equinix Inc. Equinix.com 9 In all locations IP Transit prices continue to fall 100 GigE takes prices to new lows in London & NY IP Transit Prices by Committed Data Rate for 10 GigE Ports in London per Carrier, Q2 2015 Source: Telegeography IP Transit Analysis 2015 Source: Telegeography IP Transit Analysis 2015 Median Global IP Transit Prices per Mbps, 10 Gigabit Ethernet, Q2 2012-Q2 2015
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2016 Equinix Inc. Equinix.com 10 $ 0.10 USD/Mbps/Month* 100 GigE Port in London, 100 Gbps Commit One answer to commoditization of NSP core business, leverages Enterprise digital transformation with global co-location, Interconnection, Cloud access, IT Outsourcing, IOT: The “Interconnection Oriented ArchitectureTM”. - Not the focus of this presentation, but Inquiries later are welcome. In all locations IP Transit prices continue to fallIn all locations IP Transit prices continue to fall *Source – Telegeography IP Transit Pricing Feb 2016
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2016 Equinix Inc. Equinix.com 11 Five essentials of peering planning 1. Plan for 20+% future traffic growth annually 2. Include peering as part of IP traffic growth strategy 3. Plan for a blend of transit, public and private peering according to traffic volumes. 4. Understand the cost and flexibility implications of campus peering vs. distributed peering 5. Expect private peering traffic to outgrow public peering traffic in the longer-term.
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2016 Equinix Inc. Equinix.com 12 Peering Essential #1
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2016 Equinix Inc. Equinix.com 13 Plan for 20+% future traffic growth annually Failure to plan for future growth can result in lower network performance, higher costs, and negative customer impact * Source: Cisco Visual Networking Index: 2014 • Global IP traffic growth is forecast to grow at 21% CAGR through 2018* • Growth in peak traffic is increasing faster than average traffic – peak traffic will grow 3.4x vs. average traffic at 2.8x between 2013 and 2018* • Typical consumer broadband speeds will grow almost 3x between 2013 and 2018 – from 16Mbps to 42Mbps* Peering Essential #1
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2016 Equinix Inc. Equinix.com 14 Proportion of Internet traffic by region Global IP Growth is uneven. Higher Growth = More Opportunity 38% 42% 32% 40% 39% 28% Source: CAGR in average Internet traffic 2011 - 2015. Telegeography Global Internet Geography Capacity and Traffic Trends, August 2015.
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2016 Equinix Inc. Equinix.com 15 Peering Essential #2
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2016 Equinix Inc. Equinix.com 16 Include peering as part of IP traffic growth strategy Peering is consistently replacing transit Source: Telegeography Peering Essential #2 Peering is consistently replacing transit on a global basis Peering continues to be an attractive way to lower bandwidth costs. Transit price declines globally are slowing . Market share for transit is declining, being replaced by peering *Improving latency also motivates peering but typically cost is the primary driver
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2016 Equinix Inc. Equinix.com 17 Peering Essential #3
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2016 Equinix Inc. Equinix.com 18 Internet Exchange IP Transit Private Peering Plan for a blend of transit, public and private peering according to traffic volumes
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2016 Equinix Inc. Equinix.com 19 Operating all three IP Transport options minimizes cost at each phase Cost ($ MRC) Total Traffic to given destination (Mbps) Transit Private Peering Public Peering Private Peering is lowest cost Public Peering is lowest cost Transit is lowest cost • Transit is most cost effective at lower traffic volumes since multi-destination traffic shares the same bandwidth. • Public peering works well for mid-tier traffic due to cost savings vs. transit.* • Private peering over cross connects works well for high traffic volumes due to lowest cost advantage of direct cross connect.* NOTE: Actual break-even points can vary greatly around the globe depending on local, costs of transit, internet exchange ports, and cross connects. IP Traffic Maturity Model Conceptual Bandwidth Cost Model Peering Essential #3a 1 2 3 1 2 3 *Improving latency is also a motivation for peering but typically cost is the primary driver Phase Phase Phase
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2016 Equinix Inc. Equinix.com 20 Use the full range of IP Transport options available Peering Essential #3b Failing to plan for a blend of all three IP Transport options increases costs and decreases choice Value Phase of Maturity Optimal IP Transport Model Level 1 Level 2 Level 3 IP Transit IP Transit IP Transit Public Peering Add: Public Peering Use Internet Exchange to connect to peers • When used: Typically adopted as bandwidth to particular destinations is consistent and continues to grow, this serves as the entry point to peering • What to look for: A large number of peers on a common platform (Campus or Distributed Metro Peering). • Benefits: A single peering port can reach multiple destinations, making peering more affordable on a cost per Mbps basis vs. transit Add: Private Peering Use Cross Connect to connect to a peer within campus • When used: When traffic to single destination becomes large • What to look for: Customers should be where there is a large number of peers in a single campus or building (Campus Peering) • Benefits: Can scale to very high bandwidths at extremely low cost per Mbps vs. public peering Start: IP Transit / Direct Internet Access Use Cross Connect to connect to carrier within campus • When used: Lower traffic levels to many Internet destinations. • What to look for: To achieve greatest bargaining leverage (lowest prices), customers need to co-locate with the largest number of ISP networks. • Benefits: Low cost way to reach all internet destinations on a cost per Mbps basis. 1 2 3 Public Peering Private Peering 1 2 3 Phase Phase Phase
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2016 Equinix Inc. Equinix.com 21 Peering Essential #4
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2016 Equinix Inc. Equinix.com 22 Understand the benefits of campus over distributed peering Distributed Peering eg AMS-IX, DE-CIX, NL-IX Transit or Transport Transit or Transport Transit or Transport Campus Peering eg PLIX, Equinix • Peers are colocated among multiple data centers distributed within a metro area • Metro transport cost is factored into customer IX port price. • Peers are colocated within the same data center campus or building • Customer IX port price does not need to factor in cost of transport • Private peeering through direct interconnection is an easy evolutionary path • Strength ! More choices of data center provider • Weakness o Higher cost structure = higher price ($6,500 for 100G) o Requires a switch per data center (cost + complexity + failure) o Transport between data centers (cost) o No ability to move to private peering o Fewer choices of transit providers • Strength ! Lower cost model = lower price ($4,000 for 100G) ! Requires less networking equipment ! No transport connections needed ! Easily offload larger flows to private peering (PNI) ! Offers maximum choice of transit providers • Weakness o Less choice of data center provider Peering Essential #4 Data Center A Data Center B Data Center C
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2016 Equinix Inc. Equinix.com 23 Essential #5 The Peering “Iceberg”
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2016 Equinix Inc. Equinix.com 24 The vast majority of Internet traffic is exchanged over PNI AMS-IX Ashburn Atlanta Chicago CIXP Dallas DE-CIX ECIX France- IX INEX IXManchester Geneva Hong Kong JPIXTokyo JPIX Osaka JPNAP Tokyo JPNAP Osaka KleyReX LINX LONAP Los Angeles Melbourne Miami MIX-IT NETNOD New York NL-IX NSW-IX Osaka Palo Alto Paris PTT.br Sao Paulo PTT.br Rio de Janeiro Seattle Silicon Valley SIX SOLIX STHIX SWISS-IXTORIX Toronto Vienna USA Singapore Tokyo Sydney UAE-IX VIC-IX Warsaw Zurich Public Peering Private Peering (PNI) AKAMAI AMAZON APPLE DROPBOX Facebook GOOGLE LIMELIGHT LINKEDIN Microsoft NETFLIX OVH RACKSPACE SALESFORCE SOFTLAYER Twitter 1&1 I N T E R N E T B h a r t i A i r t e l B l i z z a r d Entertainment Bouygues Telecom Cable & Wireless CARPATHIA CENTURYLINK CHINA MOBILE Chinacache Cisco Systems COGENT COMMUNICATIONS COLT COMCAST COX COMMUNICATIONS Deutsche Telekom EDGECAST NETWORKS ELECTRONIC ARTS Etisalat FLAG GTT Hibernia Hurricane Electric HUTCHISON GLOBAL IPTP Jaguar Network KDDI KPN Korea Telecom PacNet PCCW RIM SFR SINGTEL SWISSCOM TDC TELECOM ITALIA Telefonica Telekom Austria TeliaSonera TRIPADVISOR TURK TELECOM VERISIGN Verizon Vodafone WARGAMING Websense WIKIMEDIA Yahoo ZAYO 90%
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2016 Equinix Inc. Equinix.com 25 Plan for private peering traffic to outgrow public peering traffic Private Peering Delivers Highly Scalable Bandwidth • For many networks private peering can be 9X larger traffic volume than public peering*. • Private peering allows customers to change networking technologies independent of the Internet Exchange provider. • Expect private peering traffic to grow at roughly a 20% CAGR. Selection factors in a peering location • Campus peering model (vs. distributed) • Number of peers in the campus Implications • Choosing the wrong peering location can result in costs of $1,500 per connection vs. $350 • Customers are limited to the functionality supported by the IX platform * Source: Equinix study Peering Essential #5 Worldwide, 9x more IP traffic is peered privately than currently passes over all public IXs*
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2016 Equinix Inc. Equinix.com 26 IX co-location may host large private peering ecosystems
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2016 Equinix Inc. Equinix.com 27 Summing it all up...
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2016 Equinix Inc. Equinix.com 28 Transit: Seek NSP-dense ecosystems. Competitive pressures among co-located network service providers significantly drives down costs for transit buyers. Public Peering: Seek the leading Internet Exchange. In Poland PLIX offers you access to the largest local peering communitiy. Worldwide, Equinix offers the same in all key locations. Private Peering: Seek Independant carrier-neutral co-location space with the largest number of ASNs locally. This minimizes the cost of private peering by providing a low-cost platform that scales beyond IX speeds. Campus peering: Seek campus peering, and avoid distributed Metro peering fabrics where possible. Keep peering costs low by ensuring peers are just a cross connect away. The best IP Transport solutions are a blend, requiring access to a full and competitive choice of services:
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2016 Equinix Inc. Equinix.com 29 PLIX Selected Peering Member List
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2016 Equinix Inc. Equinix.com 30 Selected Peers @ PLIX* | 279 Members, Peak traffic ~ 470 Gbps • 3S S.A. • Agora • Akamai Technologies • Amazon.com • Aplitt S.A. • Atende Software sp. z o.o. (redCDN) • ATMAN • Audatex (Switzerland) GmbH • CDNetworks Inc. • Centralny Osrodek Informatyki Gornictwa S.A. - COIG • CloudFlare • CommunityDNS Ltd • Connected sp. z o.o. • Czestochowska Spoldzielnia Mieszkaniowa Nasza Praca • DCENTER.PL • Deutsche Telekom / ex GTS Central Europe • Dolsat sp. z o.o. • EdgeCast Networks, Inc. • ETOP Sp z o.o. • ETT • EXATEL SA • Facebook • GaMP Sp. z o.o. • GENERACJA.pl • Google Inc. • Grupa Onet.pl S.A. • GTS Poland • Hibernia Networks • HosTeam s.c. • Hurricane Electric • i3D.net • IBSELEKTRONICS • ilario sp. z o.o. • Incapsula • Infomex Sp. z o.o. • Init7 • IP Transit, Inc. • ISC • Kaia Global Networks Ltd. • Krosnienckie Centrum Informatyczne "Krosoft" • Leaseweb Network • Liberty Global • Limelight Networks • Linx Telecommunications BV • Maverick • Microsoft • MNI Telecom S.A. • Multimedia-Polska Południe S.A. • NASK • NetArt • NetAssist • Netia S.A. • Nitronet Sp. z o.o. • OF.PL SP. Z O.O. • OpenDNS, Inc. • OVH • Oxylion S.A. • Packet Clearing House • "Petrus Polska Spółka z o.o." Spółka jawna • PLIX • Polkomtel Sp. z o.o. • Polskie Sieci Radiowe • Prime-Line • Provector • RAD-IX • Riot Games • S-NET Sp. z o.o. • SG.GS • SIA Lattelecom • Sileman Sp. z o.o. • SilesNet • Sitel sp. z o.o. • Skyware Sp. z o.o. • Spoldzielnia Mieszkaniowa Lokatorsko-Wlasnosciowa w Legionowie • Spoldzielnia Telekomunikacyjna OST • Stream Communications Sp. z o.o. • TKTelekom • TransTelecom • TVK Telewizja Kablowa • Twitch • UARNet • University of Information Technology and Management • University of Warsaw, ICM • Verisign • Virtual Line • VirtuaOperator • WAWER - CePIX.pl • WDM • Wielunska Spoldzielnia Mieszkaniowa • Wnet • X-COM Partners • XENIUM • YNET MANAGEMENT • Yureco S.A. Source: Peering DB – February 2015
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2016 Equinix Inc. Equinix.com 31
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