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Peering Breakeven Analysis White Paper

  • From: William B. Norton
  • Date: Thu Jun 28 14:45:22 2001


Hi all -

After about 6 months, I've finally finished a presentable draft of a community white paper I'd like to share with a handful of interested folks.

The draft is titled "The Peering Breakeven Analysis Graph: An ISP Peering Cost Savings Analysis" and finishes up the research I've done with the Peering Coordinator Community. It complements the "Internet Service Providers and Peering" white paper that I know many of you have read and focuses on its business case for peering that Bill St. Arnaud cited at a NANOG.

Here is the Abstract:
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During the recent economic turmoil, Internet Service Providers are looking for ways to reduce their costs of providing Internet services. Chief among their costs are telecommunications costs, the cost of getting traffic to the other networks of the Internet.

Discussions with ISP Peering Coordinators identified Internet Service Provider (ISP) "Peering" as one of the most effective methods of reducing telecommunications costs for ISPs. The ISP Peering Coordinator's job is to establish and effectively manage this interconnection between ISPs. Goals include maximizing efficiency and minimizing costs of interconnect costs. As demonstrated in the "Internet Service Providers and Peering " earlier work, the job requires a rare combination of technical and business acumen with good people and negotiating skills.

This paper introduces the ISP Peering Coordinators terminology and the tools and analysis typically used. We demonstrate these with a specific implementation and generalize them in the form "Peering Break Even Analysis Graph". This is the business case for Internet Service Provider peering based on current practices and market prices.
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If you can help and have the inclination to read it (it is only six pages) and comment, please send me e-mail: [email protected]

Thanks -

Bill

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William B. Norton Co-Founder and Chief Technical Liaison Equinix
[email protected] 650.315.8635