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Old 01-09-2009, 02:14 PM  
drippingplasma
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Join Date: May 2003
Location: ON, CA
Posts: 8
Peering has costs

I have to agree with Brad there are some items in this post which are next to impossible to achieve.

Settlement free peering generally requires multiple points of geographically diverse interconnects with a ballance on incoming and outgoing traffic. Most large "Tier-1" providers usually require 5-7 points of interconnect in 3 or more continents each pushing in the 5-10 Gbps range.

Smaller providers generally already have too many web hosts on their network which may already be preventing them from geting settlement free peering since their outbound is grossly inballanced with their inbound traffic. Since they already have too much outbound traffic it is highly unlikely that you will get free outbound traffic. I have heard of people getting lower cost or nearly free inbound traffic but never outbound.

The space & power in datacenters with that type of connectivity will cost you more per month than the hardware costs for the servers. You can expect to pay $15-$45 per amp for power depending on the data center and its power backup facilities plus $600-$1200 per month per rack/cabinet (assuming you commit to multiple racks/cabinets).

Fibre to cross connect to your carrier or to the various exchanges will likely cost between $150 and $1000 per pair per month depending on the exchange and what they charge for access to the building conduit and risers. There is often a install charge for the fibre that ranger from 1-3 times the monthly fee.

You also haven't included the costs of the routers and switches or administration costs.

If you take the original numbers and multiple by 2 or 3 you will be closer to the real costs.
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