Business case for IXPs why are they useful as businesses?
ATI workshop on Internet Exchange Points, Tunis
Arnold Nipper, CTO/COO and Founder
Business case for IXPs
why are they useful as businesses?
• What is an IXP?
• Why do IXPs exist?
• IXP as a market place
• IXP as a focal point for telecommunication industry
• How to market an IXP
• A network infrastructure with the purpose to facilitate the
exchange of Internet traffic between Autonomous Systems and
operating below layer 3
• At least three or more members/customers connected
• (provides a members/customers list and traffic stats)
• What else?
What is an IXP?
• The Internet was strictly hierarchically until early 1990‘s
– Packets between networks had to cross the NSF backbone
– Expensive and non performant
• BGP allows for arbitrary topologies
– First version (RFC1163) from 1991
– Networks may interconnect at any level
– The Internet is flat
– Hierarchy only in terms of providers (Tier 1, Tier 2)
Why do IXPs exist?
• Networks have to interconnect somehow
• Interconnecting at dedicated places creates synergies
– The more networks, the greater the synergy
– Allows for higher capacity into the interconnect point
– Minimizes the number of interconnect points
• Direct interconnect
– Gives you full control over your packets
– Saves costs (at least if you have enough data)
Why do IXPs exist?
• Most often IXP are associated with peering only
• According to the definition it‘s a place to „exchange“ Internet
traffic. This might be
– Upstream / Downstream
• The IXP gear has to be located somewhere Colocation
– Lots of other service around
IXP as a market place
• Where to place a (new) IXP?
– Where fibre landing stations are?
– Where financial hubs are?
– Where lots of people are?
• Once established, IXP form some sort of gravity
– Telecommunication circuits are „sticky“
– The more there are, the more will come
IXP as a focal point for telecommunication industry
– try to span your IXP across all relevant colocations
– Talk to ISPs, colocation, business development for your town/area
– Attend *nog, RIR meetings
– Become a member of your IXP association
– Do a SWAT analysis
– Develop a clear strategy
How to market an IXP
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28. April 2013 – DE-CIX Management GmbH #10
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