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peering-toolbox:why-peer [2022/08/26 15:09] – [Latency] philippeering-toolbox:why-peer [2023/04/30 14:30] (current) – [Costs] philip
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 ===== Costs ===== ===== Costs =====
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 +(UPDATED)
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 The commercial part of the Internet is highly competitive with many network operators vying to provide the highest quality service to their end users at the lowest possible cost. The commercial part of the Internet is highly competitive with many network operators vying to provide the highest quality service to their end users at the lowest possible cost.
  
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 Peering has no traffic charges, and so the more peering an operator can achieve, the lower the cost of traffic charges paid for transit. This reduction in operating expenses (OpEx) means better value Internet access for customers, or more financial ability to invest in newer/bigger/better infrastructure for the network operator, or hiring more technically skilled staff, or a combination of all of these. Peering has no traffic charges, and so the more peering an operator can achieve, the lower the cost of traffic charges paid for transit. This reduction in operating expenses (OpEx) means better value Internet access for customers, or more financial ability to invest in newer/bigger/better infrastructure for the network operator, or hiring more technically skilled staff, or a combination of all of these.
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 +**Note**: in some parts of the Internet it is actually cheaper to outsource peering by buying cheap transit. Quite often the operational overhead, the cost of ports and cross-connects, the IXP membership fee (not to mention paid peerings) makes the cost of peering quite often comparable with cheap transit. Here the operator has to weigh up the benefits of peering (discussed in the following sections) versus delegating all those to the cheap transit provider.
  
 ===== Latency ===== ===== Latency =====
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 They have built their own content distribution networks (using their own fibre optic infrastructure rather than buying transit) and regional data centres, with their goal being to get their content to their "[[peering-toolbox/terminology#eyeballs|eyeballs]]" with the lowest latency, highest speed, and greatest reliability. They have built their own content distribution networks (using their own fibre optic infrastructure rather than buying transit) and regional data centres, with their goal being to get their content to their "[[peering-toolbox/terminology#eyeballs|eyeballs]]" with the lowest latency, highest speed, and greatest reliability.
  
-With these Hyperscale Content Providers present in so many places, network operators of all types work hard to ensure that they can peer directly with these content providers as close as they can to their own network infrastructure. Hauling data half way (or even a quarter of the way) around the world as was done in the 1990s and 2000s have now been replaced since the 2010s with operators turning up at Internet Exchange Points to interconnect with the Content Providers and Content Distribution Networks directly.+With these Hyperscale Content Providers present in so many places, network operators of all types work hard to ensure that they can peer directly with these content providers as close as they can to their own network infrastructure. Hauling data half way (or even a quarter of the way) around the worldas was done in the 1990s and 2000s, was replaced in by the early 2010s with operators turning up at Internet Exchange Points to interconnect with the Content Providers and Content Distribution Networks directly.
  
-Given around 80% of traffic of any operator is sourced from these Hyperscale Content Providers, there is a overwhelming value proposition for all network operators who are [[peering-toolbox/internet_resources|able to peer]] (i.e. have their IP address space, AS number, own transit arrangements) to participate in peering at their nearest IXP or private interconnect facility.+Given around 80% of traffic of any network access provider is sourced from these Hyperscale Content Providers, there is a overwhelming value proposition for all network operators who are [[peering-toolbox/internet_resources|able to peer]] (i.e. have their IP address space, AS number, own transit arrangements) to participate in peering at their nearest IXP or private interconnect facility.
  
  
peering-toolbox/why-peer.1661490596.txt.gz · Last modified: 2022/08/26 15:09 by philip