Current Trends in IXPs, Hosting, and Cloud Computing

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1 Current Trends in IXPs, Hosting, and Cloud Computing INTERNET EXCHANGE POINTS FORUM Verena Weber, OECD

2 The Internet The term the Internet originates from and is commonly defined as: The network of interconnected networks, or internetwork, running on the IP protocolsuite

3 Internet traffic exchange There are millions of networks, including home networks. Most connect to ISPs Autonomous Systems (AS) do not need ISPs (or are ISPs themselves) ASNs route independently Canton school Zug, tax organisations, European Commission, BBC, Brinks de Colombia, Bancolombia Not just telecommunications companies No difference between ASN for school or for telco

4 Independent networks per country

5 Transit Every network needs at least one transit provider to reach all other networks. per peak megabit/s/month irrespective of direction of traffic (900/50in/out =50/900 in/out) Paid by both sides, though not same price Transit provider necessary, because you can t reach all networks/geographies Transit prices: USD 0.50/mbit/s/month in London USD150/mbit/s/month in Nairobi Prices are continuously dropping

6 Peering When two networks are in the same region, it makes sense to connect directly Bypass transit provider, save money Both networks save equal amount of traffic, but unequal amount of money Internet Exchange Point makes it easier to connect with more networks. 96 countries, 142,210 peering relationships, 99,51% handshake No regulation

7 Interconnection Peering and Transit generally beneficial model to all parties. Sometimes disputes New Zealand, Norway, France, Netflix Some networks buy transit only off-shore Forced peering not a solution (Australia) Solution: Require transit to be bought on-shore

8 Data centres and cloud computing Data centres are one of the end-points where backhaul networks terminate Can be in-house, third party or Internet industry Carrier neutral data centres are good locations for IXPs Increasingly local IXPs at local data centres

9 A view of the world Local (blue) vs. foreign (red) hosted content

10 CDNs and local traffic exchange CDN delivers traffic globally for customers Saves customers equipment, travel, negotiations, jetlag CDNs rated based on speed Conviva and Cedexis software chooses best CDN for customer Highly competitive ISP refusing peering can negatively affect CDN CDNs push development of regional IX FL-IX (Florida, by Netflix), France-IX (Akamai) Big content providers build own CDN They can build highly specialized CDNs, save 20% costs according to Netflix

11 Internet Exchange Points (IXPs) Around 440* IXPs worldwide Source of nearly all Internet bandwidth Countries lacking IXPs must import bandwidth from other countries More costly Latency Rather low cost of implementation *Source: Packet Clearing House

12 IXPs Tendency: More and more regional IXPs Brazil: Around 27 IXPs, established by using funds from domain name registration Europe: more and more regional ones (e.g. Nuremberg, Bilbao, Lyon)

13 SITUATION IN COLOMBIA

14 Hosting of content in the country: Current situation Indications from OECD reviews on Colombia Hosting market not well developed Overview of hosting countries of.co Large part of the content is hosted outside Colombia Colombia Germany United Kingdom Canada Netherlands Singapore France Europe Indonesia Spain China Argentina Turkey Ireland India Poland Australia Others

15 Hosting of content in the country: The role of the public sector Public entities often lead users in OECD countries Pingdom data (Alexia top million): Public websites both hosted in Colombia and abroad Important websites hosted outside the country Exampes of public sector sites hosted in another country url Hosting country gobiernoenlinea.gov.co Argentina migracioncolombia.gov.co Argentina cucuta-nortedesantander.gov.co Argentina agronet.gov.co Argentina contratos.gov.co Argentina metrodemedellin.gov.co Argentina contraloriavillavicencio.gov.co Canada esemeta.gov.co Canada radionacionaldecolombia.gov.co Europe eseacevedo.gov.co mintransporte.gov.co cancilleria.gov.co vivedigital.gov.co colciencias.gov.co idartes.gov.co sitp.gov.co laguajira.gov.co derechodeautor.gov.co concejodecali.gov.co fomag.gov.co mintic.gov.co serviciocivil.gov.co radionica.gov.co supervigilancia.gov.co idrd.gov.co transmilenio.gov.co fna.gov.co loteriasantander.gov.co caprecom.gov.co seduca.gov.co loteriadeboyaca.gov.co Virgin Islands, British

16 IXP situation in Colombia (I) Currently only one significant IXP run by CCIT Key figures in comparison Country City Population (country) Colombia Bogotá 48,014,026 NAP Internet Exchange Name Colombia Austria Vienna Vienna Internet Exchange Ukraine Kiev 44,291,413 Ukrainian (2014) Internet Exchange Participants Traffic Source: Packet Clearinghouse Database (2015) Establishe d 19 31G Jun G Apr G Jul 2000

17 IXP situation in Colombia (II) 2 IXPs (1 significant) for the entire country Relatively low amount of traffic Small number of members No content providers; almost all members are ISPs High membership fee There seem to be access barriers to traffic exchange and especially peering at this IXP Promote additional IXPs and ensure low barriers of entry

18 OECD work on Internet traffic exchange and Colombia Reports on Internet Traffic Exchange International Cables, Gateways, Backhaul and International Exchange Points (OECD Digital Economy Papers No. 232) Connected Televisions (OECD Digital Economy Papers No. 231) Internet Traffic Exchange (OECD Digital Economy Papers No. 207) OECD Reviews on Colombia OECD Reviews of Innovation Policy: Colombia 2014 OECD Review of Telecommunication Policy and Regulation in Colombia

19 THANK YOU!

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