Transcript GlobalIPcarriers

Growing Your IP Business by
Addressing Your Customers’
Broadband Content Needs
Keith Mitchell
Chief Technical Officer
Global IP Carriers
Conference
19th April 2002
© XchangePoint 2001
Overview
 Customer Needs and Drivers
 The Kendra Way Forward
 Broadband Capacity and Connectivity
 Case Study:
 XchangePoint’s Interconnect Platform
 Conclusions, Questions
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Customer Needs and Drivers
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Growing Your IP Business
 Your Broadband Content Customers:
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Small/Medium ISPs
Hosting Providers
Content Providers
Content Distributors/Aggregators
ASP, Portal, Domain Name Providers
Corporates/Enterprises
Consumers
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The Business Needs of
Broadband Content Customers
 Revenue generation
 Meet existing business models
 Cost reduction
 Quality of service, backed up by SLAs
 Supplier choice and diversity
 Flexible contracts
 Stable relationships
 Fast provisioning
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Technical Needs of Broadband Content
Customers
 High resilience and availability
 Low latency
 High throughput
 Efficient content distribution
 via caches
 via multicast
 System and network security
 Optimal mixture of peering and transit connectivity
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Where are your Broadband
Content Customers ?
 Neutral co-location facilities
 Carrier co-location facilities
 Close to established Internet Peering Points (IPPs)
 Corporate data centres
 Close to off-line content industry centres
 On the end of an ADSL/Cable Modem/UMTS
connection
This discussion will focus on first 3 (highest volume)
categories
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Why do Content Customers cluster ?
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Choice of ISPs who locate backbone nodes in single building
operated by co-location provider
Cheap in-building connections
 to IPPs
 over point-to-point private interconnections
Interconnect operator need not be same organisation as colocation provider
MAN bandwidth much cheaper and faster than WAN
Improved throughput and latency performance
Critical mass of suppliers in single location creates competitive
market in provision of capacity, transit and services
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Drivers for Growth
 Growth in the number of customers connected to
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Internet may have tailed off
But their demand for bandwidth is getting broader:
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faster end-station connections
bandwidth intensive applications such as video
Web and application hosting
permanent connections
 Looks like 200%/year traffic growth is not unrealistic
 Successful providers need to cope with and exploit
this
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A Key Growth Driver - Traffic
Annual CAGR%
350%
300%
250%
200%
150%
100%
50%
0%
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-9 v-9 n-9
-9 p-9 v-9 n-0
-0 p-0 v-0 n-0
-0 p-0 v-0 n-0
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No
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Source: LINX
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Observations
 Key to survival and success in current market
conditions is to address users’ service requirements
 This does not need to be complex
 Internet broadband capacity is crucial
 Revenue will grow, even if not at same %age rate as
traffic
 Cost-efficiency of bandwidth provision very important
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Meeting Broadband Consumers’ Needs
 Give them the content they want and are prepared to
pay for
 Make it easy for them technically
 Improve viewing experience
 Open standards
 Make it easy for them commercially
 Don’t constrain payment models
 Compatible payments standards and systems
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Meeting Content Providers’ Needs
 Deliver their content efficiently over your network
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General purpose delivery tools
Multicast
Application-neutral caching architecture
Use public IPPs
 Give them flexibility and a good deal
 Interconnect platform
 Enable them to obtain revenue from selling content
 This pays your bills too !
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The Kendra Way Forward
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The Kendra Initiative
Research project investigating transport layer
for distribution and delivery of high bandwidth
content over the Internet
Promotion - bringing together content
creators/owners and specialists from industry
and academia
Running trials - global content distribution
system
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The Kendra Initiative - Vision
 Provide:
Consumers
 Content Creators/Aggregators
 Service Providers
 Hardware/Software Vendors
with a framework that will allow these organisations and
individuals to be rewarded for their efforts
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Create an open and freely available content delivery
architecture with no barriers to participation in its
creation
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Build a system that allows users to pay for content
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Provide an alternative to the current spate of old-Napster
type peer-to-peer systems
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The Kendra Initiative:
Current Status
 Discussion lists up and running
 Promotion continues through Kendra
 Participants speaking at trade events
 Network Trial up and running
 Aims to enable interoperability between different
content delivery networks
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The Kendra Initiative & Multicast
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Multicast is a key technology for enabling efficient
distribution of content over Internet
Technical solutions exist, but need to drive this to
production deployment
Important component of The Kendra System's
content delivery topology
Wrapping multicast up as a component of a viable
content delivery business model
© XchangePoint 2001
Multicast Applications
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Multicasting is, as yet, an un-tapped opportunity!
“natural” users of multicast > high bandwidth requirements
“conferencing” applications make stringent demands of network
resources / capabilities
“distribution” applications, e.g. Internet TV, multiple site file
updates, etc. are very effective over multicast
Important to note the increase in current network efficiencies as
a consequence of implementing Multicast
Too much emphasis has been placed on broadband media rich
content
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Broadband Capacity
and Connectivity
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Ways of Obtaining
Broadband Internet Capacity
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Transit: One provider agrees to give another’s customers
access to the whole Internet
 they always charge for this !
 usually volume and/or capacity based
 typically across private interconnects, with SLA
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Peering: Two providers agree to provide access to each others’
customers
 commonly no money changes hands: “settlement free”
 barter of perceived equal value
 simple commercial agreements
 traditionally across public peering points, no SLA
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Other models exist
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What Are Optimal Connectivity
Arrangements ?
 How many Transit providers ?
 1 is not resilient enough
 4 is probably too complex - non-deterministic routing and
failure modes
 use bandwidth brokers or transit aggregators ?
 do they have a stable future ?
 how easy is it to change providers ?
 Is Peering worth doing ?
 Public or Private interconnection ?
 Best insurance is to be able to have flexible
interconnect arrangements with multiple providers
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Public and Private Interconnect
 Public Interconnect
 Internet Peering Point (“IPP” or “IXP” or “NAP”)
 multiple parties connect to shared switched fabric
 commonly Ethernet based
 many-to-many connectivity
 Private Interconnect
 single circuit dedicated between two parties
 typically used for transit
 Virtual Interconnect
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The Evolving Interconnect Market
Peering
Transit
Private
High Volume
QoS
North America
Traditional
Public
Traditional
Opportunity
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Advantages of Virtual Interconnect
 Lower cost than WDM/SDH private interconnect
 Easy migration path from public peering through to
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private interconnect
Can mix public and private services on same port
Ability to combine and present multiple services on
same port
Faster provisioning of services
Greater flexibility
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XchangePoint’s Broadband
Interconnect Platform
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Architecture Overview
 Present at multiple co-location sites per city
 Dark fibre metro ring connecting all sites in city
 Ethernet switches at all sites
 DWDM equipment at major sites
 Gigabit Ethernet between switches and sites
 10-Gigabit capable
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Ethernet Switches
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2
Black Diamond/Alpine Ethernet
switches at each site
All switches are non-blocking
Each switch at each site
connected to one of two
separate wavelength overlay
networks
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DWDM Configuration
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system supports
32 protected wavelengths ()
per fibre ring
Initial configuration 8
 3  for backbone
 5  for customer OPIs
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Remaining  can be used to
increase backbone or OPI
capacity in 1Gb/s or 10Gb/s
increments
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Interconnect Platform
Advantages for Content Customers
 Improves Internet connectivity resilience and
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bandwidth
Reduces provider to consumer hop-count, latency
Simplifies the IPP joining procedures allows content
providers to interconnect efficiently
Creates ready market for buying capacity/transit from
carriers/ISP in single location
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Service Status
 London network has been live for over 10
months 
 Service trial completed successfully
 Now 25 customers, generating revenue 
 Peaking >150Mb/s traffic
 Have met SLA targets throughout 
 Paris and Frankfurt planned during 2002
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Conclusions, Questions
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Conclusions
 There are growth opportunities with content
customers, but the technical and commercial models
need to evolve
 Kendra is one vision of how to do this
 Internet broadband capacity is key
 Cost-efficiency of bandwidth provision very important
 Multicast important element of this
 More open standards work needed on both content
distribution and payment systems
© XchangePoint 2001
Conclusions
 Address broadband content customers’ needs via:
 Addressing their service quality requirements
 Flexible interconnect arrangements
 Single presentation of combinations of
interconnect services
 Virtual interconnect services
 Sell transit via interconnect platforms
© XchangePoint 2001
Questions ?
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Contact Details
Keith Mitchell
www.xchangepoint.net
[email protected]
+44 20 7592 0370
Daniel Harris
www.kendra.org.uk
[email protected]
Presentation:
 http://www.xchangepoint.net/info/GlobalIPcarriers.ppt
Paper:
 http://www.kendra.org.uk/documents/
kendra-an-introduction-draft-current.html
© XchangePoint 2001