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The Peering Simulation Game

The Peering Simulation Game. William B. Norton Co-Founder, Chief Technical Liaison Equinix Inc. Internet Researcher. 90% externally focused Many documents on Protocols Lack of Operations documents Research: Peering How does Peering work? What are the definitions?

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The Peering Simulation Game

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  1. The Peering Simulation Game William B. Norton Co-Founder, Chief Technical Liaison Equinix Inc.

  2. Internet Researcher • 90% externally focused • Many documents on Protocols • Lack of Operations documents • Research: Peering • How does Peering work? • What are the definitions? • What are the “Tricks of the Trade?” White paper process..

  3. Community Operations Research • “Ground Truth” w/dozens of experts • Write White Paper v0.1 • Walk community through WP for comments • Revise White Paper into new version • Present White Paper at conferences • Solicit comments over lunches and dinners White papers so far…

  4. 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.com Or Google for “William B. Norton”

  5. 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 trade 2) Summary Findings from Research 3) Live the Life: Peering Simulator No Internet Preso is complete without…

  6. Made Up Real Internet Statistics • 87.5% of all Internet statistics are made up Source: I made it up

  7. Upstream Transit Provider 3 minute Intro to Peering Transit $$ ISP A Peering provides routes only to each others customers ISP B Transit $$ • 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?

  8. Definitions of Peering and Transit Def:Peering is the business relationship whereby ISPs reciprocally announce reachability to each others’ transit customers. Peering Peering WestNet USNet EastNet Routing Table • (Note: Peering is a Non-Transitive Relationship) vs. Def:Transit is the business relationship whereby one ISP sells access to all destinations in its routing table.

  9. The Players • Internet Service Provider A • Peering Coordinator • Internet Service Provider B • Peering Coordinator • Internet Service Provider C • Peering Coordinator • Internet Service Provider D • Peering Coordinator

  10. 3 Helpers • Transit Provider X: • Transit Provider Y: • Exchange Point Operator:

  11. A B C D Transit Provider X The Peering Game IXN X X IXW IXE Y Y IXS Transit Provider Y

  12. 3 Rules • Goal: Maximize bank holdings. Make money by acquiring customers and reduce transit costs by peering • Play: Roll the dice and expand your network by selecting that many adjacent “squares” of customers Gain transit revenue of $2000 for each customer square you own Pay transit fees of $1000 for each square of traffic that other ISPs own 3. If at Exchange Point, two ISPs can negotiate peering: • $2000 recurring cost and loss of 2 turns, ISPs negotiates who covers the costs of peering • Peering ISPs do not have to pay transit for each others squares starting the next turn Quick round…

  13. A B C D Transit Provider X A A A A IXN 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 = $9,000 X X IXW IXE Y Y IXS Transit Provider Y

  14. A B C D Transit Provider X A A A A IXN A B B 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 X X IXW IXE Y Y IXS Transit Provider Y

  15. A B C D Transit Provider X A A A A IXN A B B 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 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 B X X IXW IXE Y Y C C C C IXS C C Transit Provider Y

  16. A B C D Transit Provider X A A A A IXN A B B 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 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 B 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 X X IXW IXE Y Y C C C D C IXS C C Transit Provider Y

  17. Scoreboard after Round 1 • ISP A: $9,000 • ISP B: $0 • ISPC: $3,000 • ISPD: -$13,000 • On to Round 2

  18. A B C D Transit Provider X A A A A IXN A B B 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 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 B A 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 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! X A X IXW IXE Y Y C C C D C IXS C C C Transit Provider Y

  19. A B C D Transit Provider X A Position 9 Revenue squares 1 lost turn Peering w/C reduced cost $8000/turn B A A A A B B B B IXN A B B 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 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 B A 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 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 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 XA XB IXW IXE Y YC C C D C IXS C C C Transit Provider Y

  20. Let’s play! WELCOME TO BILLAND 4 ISPs that have never played before Open Board $35,000 VC Funding We want to hear your thought process and peering negotiations Winner - prize $25,000 VC Funding 1¥ = $1000 WINNER: At 5:25?PM we will stop and assume that every roll was a “3” from that point on out to 12 rounds..

  21. Play the Peering Simulation Game…

  22. Top 5 Reasons NOT to Peer

  23. Transit $$$ Yahoo! Top 5 Reasons not to Peer 1) Already get Traffic for “free” (through existing peering relationships) Transit ISP EXODUS Peering $ AOL

  24. Top 5 Reasons not to Peer Huge investment in Int’s circuits, 100’s of routers and colo sites, Staff installs, peering negotiations, Millions of customers, etc. 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

  25. 3) Lack of Technical Competence Troubleshooting network problems takes longer when the other ISP NOC and engineers lack the technical expertise during an outage… Top 5 Reasons Not to Peer

  26. Top 5 Reasons Not to Peer 4) Transit Sales Preferred • We rather sell you transit…“Let me introduce you to our sales guys”

  27. 5) BGP is Tough “BGP? No ExpertiseNo measurements No Justification to hire expertsBGP?” Top 5 Reasons Not to Peer Simple Complex Conceptual Hurdle Conceptual Hurdle Primary Backup Transit Primary Backup Transit 6: personality

  28. Top 5 Reasons Not To Peer 5+ Personality Clashes: They don’t understand each other and they didn’t like the interaction So Peering sounds easy?

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