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North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: (possible Flame bait) Backbone Building vs Transit purchasing
> > *IS* there a common sense number or an equation (better) anyone has worked > > out to figure whether building a backbone (national/international) to > > peering points (i.e. extending an existing, operational service network) to > > improve/add peering vs continuing to buy transit? > > If you are assuming that this is not about performance then surely this is a > very simple thing to work out? > > Cost of transit T = cost of transit/committed Mbs > Cost of peering P = (cost of: circuits+routers+colo+nap)/Mbs of actual traffic > > If P>T go and push your network out to the peering point it will save you money. > > Now.. at present your problem is that T is very low, and certainly lower than P > unless you are moving quite a lot of traffic.. 1Gb is a lot of traffic, so all > you need to do is to figure out the costs in getting to a NAP and how much > traffic you can shift. [skip] You are forgetting: salaries depreciation leases IRU financing expenses ... etc etc etc Alex
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