Interconnection, Bandwidth and Datacenters

“Water, water everywhere -And not a drop to drink.”

Remco van Mook, EquinixSwiNOG, May 23. 2013

Remcos-MacBook-Pro:~remco$ whoami

Topics for Today

Interconnection Markets

The Bandwidth Challenge

Datacenters: Equinix ZH5

NO, NOT JUST INTERNET EXCHANGES

Act 1: Interconnection Markets

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The Price of Bandwidth, in bulk, per MbpsWestern Europe, early-mid 2011

A EUR80 fiber cross connect:

Internet Exchange traffic:

Backbone traffic Western Europe:

Transatlantic traffic, wholesale:

Internet Transit, wholesale:

Internet Transit, retail

Broadband Internet, consumer:

National Ethernet service:

3G mobile data, national:

GSM voice call, national:

3G mobile data, roaming low:

3G mobile data, roaming high:

GSM voice call, roaming:

SMS Text Messages:

SMS Text Messages, roaming:

$0.01

$0.25*

$0.50

$1

$2

$15

$50

$180

$11,400

$483,840

$834,000

$3,127,500

$3,338,496

$210,000,000

$1,166,400,000

Carrier Pigeon: $2500 (est)Carrier Pigeon: $2500 (est)

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The New Price of Bandwidth, in bulk, per MbpsWestern Europe, mid 2012 (based on 10Gbps)

A EUR80 fiber cross connect:

Internet Exchange traffic EU:

Internet Exchange traffic US:

Backbone traffic Western Europe:

Transatlantic traffic, wholesale:

Internet Transit, wholesale:

$0.01

$0.18*

$0.35*

$0.15

$0.50

$0.65

Pain ahead!

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Definition time!

A Healthy Interconnection market

1.Has sufficient critical mass to be self-perpetuating

2.Has at least a regional significance

3.Minimizes duplication of effort

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3 Basic Motivators

Why does a network expand its footprint?

1.Increase Revenue2.Reduce Cost3.Improve Quality

These decisions are made:

1.For different reasons, 2.By different people, 3.In different parts of an organisation.

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No seriously, where?

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No seriously, where?Take Frankfurt, for example:

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No seriously, where?Or Amsterdam:

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Why does it work?

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Consolidated effort

You need:

1.Space, Power and Local Connectivity2.Local/National eyeballs3.Transport providers4.National and International Content5.Carriers6.Foreign eyeballs

To work TOGETHER to create a SINGLE interconnection zone

Act 2: The Bandwidth Challenge

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Cisco’s VNI – All IP Traffic

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AMS-IX Traffic over a 20 year period(2015 based on a CAGR of 40% and mid-2012 data)

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Evolution of Networking Standards(Planned) release dates of IETF Ethernet standards

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Hmm, that looks familiar…

• Those lines look the same!

• Besides, I recognise that 100,1000,10000,100000 series from somewhere…

• Let’s see those charts again on a logarithmic scale!

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AMS-IX Traffic over a 20 year period(2015 based on a CAGR of 40% and mid-2012 data)

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Evolution of Networking Standards(Planned) release dates of IETF Ethernet standards

2017!

400000

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As long as equipment performance keeps up…We now move to Andy Bechtolsheim, presenting at NANOG 55

“There is a big gap between the processes that are used for networking chips and the ones used for state of the art CPUs.”

“ASIC designs are not on Moore’s Law.”

“There is basically a bottleneck around I/O.”

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Oh, snap.

To summarize, linear growth…

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Takeaways

Traffic keeps growing exponentially

Network hardware backplanes are not

We need to get creative to solve this

And rethink how we’re interconnecting the Internet

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Abridged history of Internet interconnection

1980s Hey, it works!Early 1990s Buy my pipes!Late 1990s Wanna Peer?Mid 2000s Mine’s bigger than yours, go away.Late 2000s I’ll build my own, then.Mid 2010s Why am I building this network again?

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“Why am I building this network again?”Eyeball Version

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“Why am I building this network again?”

Off-net is the new hotness!

For some content providers, over half of their traffic is served from inside eyeball networks, trending upwards…

It helps to create walled gardens!

This does not scale!

Content Version

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A short explanation of a “Walled Garden”(Adult language version)

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This does not scale!

• Instead of ~20 locations to interconnect worldwide, we’re looking at over 200 deployments close to eyeball networks

• It doesn’t even work for a lot of things (interactive content, cloud)

• This sets a huge barrier to entry

• There is not enough physical infrastructure to support this!

Act 3: Equinix ZH5

Switzerland. The Secure Heart of Europe. ZH5.

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• 6.5 km Dark Fiber between ZH5 and ZH4 for the price of a Cross Connect

• Dual Site Strategy for CHF 120.- MRR connectivity costFacts & Figures

1.IBX+

2.Leed Gold Standard

3.ISO 9001 and ISO 27001

4.80+ carriers

5.6‘680 m2 colocation area

6.14 MVA power

7.Biggest IT Ecosystem in Switzerland

8.High carrier density, 80+ Carriers

9.Located in the economical and business center of Switzerland

10.Scalability - power and space wise

Equinix Switzerland – Datacenters.

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City DC Space Opening

Zurich ZH1 540 m2 1998

ZH2 373 m2 2004

ZH3 230 m2 2006

ZH4 1100 m2 2010

ZH5 6680 m2 2013

Geneva GV1 2060 m2 2000

GV2 2500 m2 2009

• Established 1998 (Telehaus -> iXEurope -> Equinix)

• ISO 9001 and 27001 certified

• Redundancy of equipment N+1

• Carrier-neutral

Facilities

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Switzerland. The Secure Heart of Europe.

Questions?remco@equinix.com