Peering Economics 101 - London Internet Exchange...When Peering is Worth the Investment It’s not...

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Hurricane Electric - Massive Peering! 1 Peering Economics 101 Susan Forney Hurricane Electric AS6939

Transcript of Peering Economics 101 - London Internet Exchange...When Peering is Worth the Investment It’s not...

Page 1: Peering Economics 101 - London Internet Exchange...When Peering is Worth the Investment It’s not all about the money. • Peering can provide real tangible benefits in terms of reduced

HurricaneElectric-MassivePeering! 1

Peering Economics 101

SusanForney

HurricaneElectricAS6939

Page 2: Peering Economics 101 - London Internet Exchange...When Peering is Worth the Investment It’s not all about the money. • Peering can provide real tangible benefits in terms of reduced

Peering Economics Topics

• WhyisPeeringNeverFree?• WhenisPeeringWorththeInvestment?• WhattypeofpeeringshouldIdo?• WhydoIneedapeeringstrategy?• WhyshouldIbeagoodneighbor?

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Why Peering is Never Free

• Peeringaconnectionbetweentwonetworkdevices.Networkdevicesarenotfree.• Peopleareneededtoconfigureandmaintainnetworkdevices.Peoplearenotfree.•  Thenetworkdevicesneedelectricpowerandaspacetooccupy.Powerandspacearenotfree.

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Why Peering is Never Free

Peeringhasacost,butaswithanythingthathasacost,italsohasvalue.Todetermineitsvaluetoyou,youneedtoknow:• Howmuchyourportcosts.Besidestheequipment,don’tforgetoptics,itsrackspace,power,andsupportcosts.• Howmuchacross-connectcostsatthedatacenterthathostsyouandtheexchange.Don’tforgetsetupfeesforthosecross-connects.• Whileitistruethateachofyourtransitprovidersalsoconsumesaportandacrossconnection,thisisagoodexercisetokeeptrackofyourcosts.Ifnothingelse,itwillhelpyouwhenitisbudgettime.

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Why Peering is Never Free MyISP MyIX

One-timeCostsDeviceport $200 $200Setupfeeforcross-connect $500 $500Setupfeeforservice $250 $500

RecurringcostsCommitlevel(MBPS) 2000 n/aCommitPrice $2,000 n/aPriceperMbabovecommit $1 n/aPriceperport n/a $500Cross-connect $250 $250

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When Peering is Worth the Investment

Todetermineifyourpeeringportisagoodinvestment,youneedtoknow:• Howmuchyourtransitand/orsettledpeeringcostsare—don’tforgettoconsideryourcommittedrates.• Howmuchtrafficyoucouldmovetotheport

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When Peering is Worth the Investment

Todeterminehowmuchtrafficyoucouldmovetotheport,youshouldconsiderwhoyourpotentialpeeringpartnerswillbeontheexchange:•  Exchangeswhereyoucanreachcontentnetworksorcloudproviderscanbeveryadvantageous.• Don’tforgettopeerwiththecachingnetworkslikeAkamai,Fastly,Limelight,etc.• NetfloworSflowcangiveyoualotofinformationaboutyourhighesttrafficsourcesanddestinations.

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When Peering is Worth the Investment

Onceyouhavethisinformation,youseeifthegettingaportontheexchangemakesgoodbusinesssensebasedoncost:

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Why Peering is Never Free

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PriceperMbpsat95thPercentileBilling

MyISP MyIX

Page 10: Peering Economics 101 - London Internet Exchange...When Peering is Worth the Investment It’s not all about the money. • Peering can provide real tangible benefits in terms of reduced

Why Peering is Never Free

Don’tforgettofactorinoperationalsupportcosts—andsavebystreamliningorautomatingthem.• Createtwoorthreepeergroupsforyourneighbors.AllyouneedtoknowfromaneighbortoturnconfigurethepeersaretheASnumber,theirIPaddresses,theirAS-SETandtheirsuggestedprefixlimitsare.• Considerthesupportpriorityofpeers.Youmaynotneedtowakeupyouron-callengineers.• MonitorportcapacityonyourIXconnectionsandincreaseitbeforeyougetintotrouble.• Usecommunitiestomakeyourpeeringsmarter.

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When Peering is Worth the Investment

It’snotallaboutthemoney.• Peeringcanproviderealtangiblebenefitsintermsofreducedlatencyandimprovedthroughput.•  Youwillgainmorediversityatyouredge—helpsimprovetrafficflowintheshortrunandhelpsyouscaleyournetworkinthelongrun.•  Yourinternalandexternalcustomerswillbehappier.

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What Type of Peering To Do

TheeasiestoptionatmostpublicexchangesispeeringwiththeIX’srouteserver.Thishassomeadvantages:•  Yourrouteronlyhaspeeringsessionswiththerouteservers.•  It’saquickwaytogetaccesstomanyofthenetworksontheexchange.•  Evenifyoupeerindividually,youstillcanpeerwiththerouteserveraswell,butyoumaywanttopreferanydirectlyconnectedpeerroutes.

Thedisadvantageisyouhavelesscontrol,andyoumaynotgetalloftheavailableroutes.Manynetworksonlyadvertiseasubsetofroutestotherouteserver,andsomemaynotchoosetopeerwiththeserver.Notallexchangeshaverouteservers.

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What Type of Peering To Do

• Peeringalsotakesplaceacrossprivatedirectconnections.Thisconnectioniscreatedbetweentwonetworks,usuallywhenalotoftrafficwouldbeexchangedwhichwouldjustifythecostofaportandacrossconnect.Insomeexchanges,keepingthetrafficontheexchangeputsaburdenontheswitch.

•  Aswithapeerontheexchange,itcanbefreeorpaid.Thenetworksdeterminewhopaysforthecross-connectfees.

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What Type of Peering To Do

• Peeringdirectlywithothernetworksontheexchangeswitchfabricisthemostcommonandconvenientwaytosetuppeeringsessions.•  Youhavemoreroutingoptionsroutesthanyoudopeeringwiththerouteserverandoncetheportisinplace,youcanturnsessionsupinminutes.• Peeringacrosstheexchangeswitchfabriccanbefree,oritcanbeapaidor“settled”peeringarrangement,inwhichanarrangementismadetodeterminewhopaysforthetrafficimbalance.

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Why you need a peering strategy

Youneedapeeringstrategytogetthemostvaluefromyourexchangeport.Someofthethingstoconsiderare:• Whatnetworkswouldbenefityouthemost?• Whatexchangesshouldyoujoin?• Howwillyouroutetheprefixesyoureceiveinyournetwork?

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Why you need a peering strategy

Howtodetermineifnetworkpeermakesenseforyou:• Doyousendalotoftraffictothispeerovertransitconnections?•  Isyourtraffictothispeerhandedofflocallyordoesit“hairpin,”addinglatency?• DoyouhaveexcessbandwidthonyourIXinterface?

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Why you need a peering strategy

• Peeringcanimproveyourroutingandreducelatency.Ornot.•  Ifyoupeeratmorethanonelocation,consideraroutingarchitecturethatallowsprefixestobeannouncedstrategicallytokeeptrafficlocal.•  Somepeerscandomoreforyouthanothers.Figuringthatoutcangetyouabiggerreturnonyourinvestmentmorequickly.

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Why you should be a good neighbor

Peeringworkswhenitisagoodexperienceforbothparties.• Cleanupyouradvertisements.Youshouldn’tbeleakingyourprivateIPspaceorroutesthatdon’toriginatefromapublicAS.• Beeasytocontactbykeepingup-to-dateroutingandcontactinformationinPeeringdb.com.• KeepyourIRRrecordsuptodate.

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Why you should be a good neighbor

Whiletheothernetworkyouarepeeringwithisprobablyafineorganization,trustnoone.•  Setmaximumprefixlimitsforyourpeers.•  Filtertheroutestoacceptonlyroutesvalidfromthepeer’sAS.

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Why you should be a good neighbor

Buildingfiltersdoesnothavetobehard.Youcanscriptityourselforuseatoollikebgpq3.Hereisanexampleusingbgpq3togenerateaprefixlistforaJuniperrouter:Galadriel:~ susan$ bgpq3 -J6l MyNewPrefixList AS44684

policy-options {

replace: prefix-list MyNewPrefixList {

2a00:1098::/32; 2a00:7d81:1000::/48;

2a00:7d81:1001::/48;

2a00:9b40::/48; 2a06:1c80::/29;

} }

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Why you should be a good neighbor

• Beresponsivewhenyouarenotifiedofanissue.Noonelikesapeerwhoignoresthem,especiallyiftheyareexperiencingaDDoS,phishing,orothertypesofnaughtybehaviorfromusersonyournetwork.• Noonecantakeadvantageofyouwithoutyourpermission.Controlyouradvertisements.• Notallnetworkswillwanttopeerwithyou.Thisusuallyismoretodowiththeirpeeringpolicyandstrategiesandlesstodowithyou.

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Thank you!

Questions?