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The Peering Simulation Game The Peering Simulation Game

The Peering Simulation Game - PowerPoint Presentation

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The Peering Simulation Game - PPT Presentation

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

transit 000 peering squares 000 transit squares peering 2000 revenue 1000 provider receives rolls pays ixe ixw peer internet

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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 2Slide18

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 expertsBGP?”

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?