William B Norton 1112 August 2010 Nairobi Kenya Sarova Panafric Hotel Nairobi African Peering and Interconnection Forum Unlocking Africas Regional Interconnection Internet Researcher 90 externally focused ID: 651065
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Slide1
The Peering Simulation Game
William B. Norton
11-12 August 2010
Nairobi, KenyaSarova Panafric Hotel Nairobi
African Peering and Interconnection Forum: Unlocking Africa’s Regional InterconnectionSlide2
Internet Researcher
90% externally focusedMany documents on ProtocolsLack of Operations documentsResearch: Peering
How does Peering work?What are the definitions?What are the “Tricks of the Trade?”
White paper process..Slide3
Community Operations Research
“Ground Truth” w/dozens of experts
Write White Paper v0.1Walk community through WP for commentsRevise White Paper into new version
Present White Paper at conferencesSolicit comments over lunches and dinnersWhite papers so far…Slide4
Internet Operations White Papers
“Interconnection Strategies for ISPs”
“Internet Service Providers and Peering”“A Business Case for Peering”
“The Art of Peering: The Peering Playbook”“The Peering Simulation Game”“Do ATM-based Internet Exchanges Make Sense Anymore?” “Evolution of the U.S. Peering Ecosystem”“Asia Pacific Peering Guidebook”“A Business Case for Peering in 2004”Freely available. See Web site or send e-mail to wbn@equinix.comOr Google for “William B. Norton”Slide5
Where did the Peering Simulation Game come from?
Conversations: 200 ISP Peering Coordinators
Research Paper: “Internet Service Providers and Peering”Today:1) Definitions of the trade2) Summary Findings from Research
3) Live the Life: Peering SimulatorNo Internet Preso is complete without…Slide6
Internet Statistics
87.5% of all Internet statistics are made up
Made Up
Real
Source: I made it upSlide7
3 minute Intro to Peering
Transit $$
Transit $$
ISP A
ISP B
Peering provides routes
only to each
others customers
Transit can costs big bucks.
(But it is a convenient plug in the wall that says
“Internet
this way”)
2) Peering costs little and reduces transit costs.
3) Q: Who to peer with? How to justify Peering costs?
Upstream
Transit
ProviderSlide8
Definitions of Peering and Transit
vs. Def:
Transit is the business relationship whereby one ISP sells access to all destinations in its routing table.Def: Peering is the business relationship whereby ISPs reciprocally announce reachability to each others’ transit customers.
Peering
USNet
EastNet
WestNet
Peering
Routing
Table
(Note: Peering is a Non-Transitive Relationship)Slide9
The Players
Internet Service Provider A
Peering Coordinator Internet Service Provider BPeering CoordinatorInternet Service Provider C
Peering Coordinator Internet Service Provider DPeering CoordinatorSlide10
3 Helpers
Transit Provider X: Transit Provider Y: Exchange Point Operator: Slide11
A
C
B
D
Transit Provider X
Transit Provider Y
IXW
IXE
IXN
IXS
Y
Y
X
X
The Peering GameSlide12
3 Rules
Goal:
Maximize bank holdings.
Make money by acquiring customers and reduce transit costs by peeringPlay: Roll the dice and expand your network by selecting that many adjacent “squares” of customersGain transit revenue of $2000 for each customer square you ownPay transit fees of $1000 for each square of traffic that other ISPs own3. If at Exchange Point, two ISPs can negotiate peering: $2000 recurring cost and loss of 2 turns, ISPs negotiates who covers the costs of peeringPeering ISPs do not have to pay transit for each others squares starting the next turnQuick round…Slide13
A
C
B
D
Transit Provider X
Transit Provider Y
IXW
IXE
IXN
IXS
Y
Y
X
X
A
A
A
A
A
A rolls 5,
Wants to peer w/B – moves to IXN
Receives revenue on 6 squares (6*$2000)
Pays Transit on others squares (3*$1000)
$12,000 - $3,000 = $9,000Slide14
A
C
B
D
Transit Provider X
Transit Provider Y
IXW
IXE
IXN
IXS
Y
Y
X
X
A
A
A
A
A
A rolls 5,
Pays Transit on others squares (3*$1000)
Receives revenue on 6 squares (6*$2000)
$12,000 - $3,000 = $9,000
B rolls 3,
Going to IXE
Receives revenue on 4 squares (4*$2000)
Pays Transit on others squares (8*$1000)
$8,000 - $8,000 = $0
B
B
BSlide15
A
C
B
D
Transit Provider X
Transit Provider Y
IXW
IXE
IXN
IXS
Y
Y
X
X
A
A
A
A
A
A rolls 5,
Pays Transit on others squares (3*$1000)
Receives revenue on 6 squares (6*$2000)
$12,000 - $3,000 = $9,000
B rolls 3,
Can get to IXE
Pays Transit on others squares (8*$1000)
Receives revenue on 4 squares (4*$2000)
$8,000 - $8,000 = $0
B
B
B
C rolls 6,
Can get to IXW, likes IXS
Receives revenue on 7 squares (7*$2000)
Pays Transit on others squares (11*$1000)
$14,000 - $11,000 = $3,000
C
C
C
C
C
CSlide16
A
C
B
D
Transit Provider X
Transit Provider Y
IXW
IXE
IXN
IXS
Y
Y
X
X
A
A
A
A
A
A rolls 5,
Pays Transit on others squares (3*$1000)
Receives revenue on 6 squares (6*$2000)
$12,000 - $3,000 = $9,000
B rolls 3,
Can get to IXE
Pays Transit on others squares (8*$1000)
Receives revenue on 4 squares (4*$2000)
$8,000 - $8,000 = $0
B
B
B
C rolls 6,
Can get to IXW, IXS
Pays Transit on others squares (11*$1000)
Receives revenue on 4 squares (7*$2000)
$14,000 - $11,000 = $3,000
C
C
C
C
C
C
D rolls 1,
Late entrant
heading to IXE
Receives revenue on 2 squares (2*$2000)
Pays Transit on others squares (17*$1000)
$4,000 - $17,000 =
-$13,000
DSlide17
Scoreboard after Round 1
ISP A: $9,000ISP B: $0ISPC: $3,000ISPD: -$13,000
On to Round 2Slide18
A
C
B
D
Transit Provider X
Transit Provider Y
IXW
IXE
IXN
IXS
Y
Y
X
X
A
A
A
A
A
A rolls 5,
Pays Transit on others squares (3*$1000)
Receives revenue on 6 squares (6*$2000)
$12,000 - $3,000 = $9,000
B rolls 3,
Can get to IXE
Pays Transit on others squares (8*$1000)
Receives revenue on 4 squares (4*$2000)
$8,000 - $8,000 = $0
B
B
B
C rolls 6,
Can get to IXW, IXS
Pays Transit on others squares (11*$1000)
Receives revenue on 4 squares (7*$2000)
$14,000 - $11,000 = $3,000
C
C
C
C
C
C
D rolls 1,
Late entrant heading to IXE
Pays Transit on others squares (17*$1000)
Receives revenue on 4 squares (2*$2000)
$2,000 - $17,000 = -$15,000
D
A rolls 3,
Attaches to IXW
Receives revenue on 9 squares (9*$2000)
Pays Transit on others squares (13*$1000)
$18,000 - $13,000 = $5,000
Wants to peer with C – split costs?
YES: -$1,000 + both lose a turn
Neither has to pay transit to each other!
A
A
A
CSlide19
A
C
B
D
Transit Provider X
Transit Provider Y
IXW
IXE
IXN
IXS
YC
Y
XB
XA
A
A
A
A
A
A rolls 5,
Pays Transit on others squares (3*$1000)
Receives revenue on 6 squares (6*$2000)
$12,000 - $3,000 = $9,000
B rolls 3,
Can get to IXE
Pays Transit on others squares (8*$1000)
Receives revenue on 4 squares (4*$2000)
$8,000 - $8,000 = $0
B
B
B
C rolls 6,
Can get to IXW, IXS
Pays Transit on others squares (11*$1000)
Receives revenue on 4 squares (7*$2000)
$14,000 - $11,000 = $3,000
C
C
C
C
C
C
D rolls 1,
Late entrant heading to IXE
Pays Transit on others squares (17*$1000)
Receives revenue on 4 squares (2*$2000)
$2,000 - $17,000 = -$15,000
D
A rolls 2,
Attaches to IXW
Pays Transit on others squares (13*$1000)
Receives revenue on 8 squares (8*$2000)
$16,000 - $13,000 = $3,000
Wants to peer with C – split costs?
YES: -$1,000 both lose a turn
Neither has to pay transit to each other
A
A
B rolls 6,
Attaches to IXE*IXN
Receives revenue on 10 squares (10*$2000)
Pays Transit on others squares (21*$1000)
$20,000 - $21,000 =
-$1,000
Wants to peer with A – split costs?
NO: You pissed me off,
Yes: if $0 & B lose both turns
Both walk away
B
B
B
B
B
A Position
9 Revenue squares
1 lost turn
Peering w/C
reduced cost $8000/turnSlide20
Let’s play!
WELCOME TO
BILLAND4 ISPs that have never played before
Open Board$35,000 VC FundingWe want to hear your thought process and peering negotiationsWinner - prize$25,000 VC Funding1¥ = $1000WINNER: At 5:25?PM we will stop andassume that every roll was a “3”from that point on out to 12 rounds..Slide21
Play the Peering Simulation Game…Slide22
Top 5 Reasons NOT to PeerSlide23
Top 5 Reasons not to Peer
1) Already get Traffic for “free” (through existing peering relationships)
Transit
$$$
Yahoo!
Transit ISP
EXODUS
Peering
$
AOLSlide24
Top 5 Reasons not to Peer
2) Not True Peers
Traffic inequity
Scale inequity
Not even investments in infrastructure
Form: “I don’t want to haul your traffic around the globe”
Large Global Network Provider
Small
Regional
Player
Huge investment in Int’s circuits,
100’s of routers and colo sites,
Staff installs, peering negotiations,
Millions of customers, etc.Slide25
Top 5 Reasons Not to Peer
3) Lack of Technical CompetenceTroubleshooting network problems takes longer when the other ISP NOC and engineers
lack the technical expertise during an outage…Slide26
Top 5 Reasons Not to Peer
4) Transit Sales PreferredWe rather sell you transit…“Let me introduce you to our sales guys”Slide27
Top 5 Reasons Not to Peer
5) BGP is Tough
“BGP? No Expertise
No measurements No Justification to hire expertsBGP?”
Primary
Backup
Transit
Primary
Backup
Transit
Conceptual Hurdle
Conceptual Hurdle
Complex
Simple
6: personalitySlide28
Top 5 Reasons Not To Peer
5+ Personality Clashes:
They don’t understand each otherand they didn’t like the interaction
So Peering sounds easy?