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Re: concern over public peering points [WAS: Peering point speed publicly available?]

  • From: Kurt Erik Lindqvist
  • Date: Tue Jul 06 02:23:46 2004

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On 2004-07-03, at 18.10, Mikael Abrahamsson wrote:

> It's when the exchange is being run by a separate entity that needs a
> marketing department, a well-paid staff of managers, technicians etc 
> that
> price really goes up. All this to basically manage a simple ethernet
> switch that needs some patching a couple of times a month at maximum.

For quite some months I have spent time thinking on this particular 
issue. And one thing have struck me with the discussions of staffing 
levels.

It is always true that if your day job get's payed by some other 
revenue generating business, running a IX with that staff should be 
easy. That is cross-subsidation and there is no need for recovering 
costs for the IXP. At the same time, there are a number of roles you 
can only take that far in that way.

One of the most obvious ones is growing the membership number. Now, 
it's not always the case that an increased membership number benefits 
the members, but I am willing to claim that it is in most cases. Reason 
is simply that the cost of running the exchange is not directly 
proportional to the number of members. So more members means less cost 
per member for a non-for-profit IX. Also, more members should increase 
the value for the other members as they have the possibility to 
"peer-away" more traffic. Now, I am willing to claim that you can only 
get new members "by reputation" up to a certain point. After that you 
will need to start to actively go out and find them, and deal with 
them. This will cost you money. I have with great interest followed how 
non-for-profit IXPs in Europe have started employing "marketing" staff. 
I have no idea if this pays off for them, but I suspect it does.


- - kurtis -

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