Surging Traffic and Bigger Houses: Get Ready for Peering Growth

Bill Long

peering

You’re just starting out, and you’re getting by – but with a lot of mac-and-cheese. Your girlfriend/boyfriend might be the one, but you’re still figuring it out.

Is purchasing that three-bedroom house now really such a great idea?

Actually, it could be. There are plenty of arguments why buying beats renting. And having that bigger place can look like a great decision when the first kid arrives. So maybe you should take that leap.

But when it comes to planning your business around the peering lifecycle, there’s no “maybe” about it. If your organization operates public and private networks, preparing for future growth is undoubtedly the right thing, because data traffic is surging. You will eventually need that three-bedroom house.

Knowing this, Equinix has built a huge network ecosystem, and robust public, private and campus peering options that benefit our customers as their needs change. We can help you expand interconnection cost-effectively at every stage of the growth everyone knows is coming.

Surging traffic and the peering maturity model

The pressure that data is putting on business begins with the explosive growth in traffic. Cisco says global IP traffic has increased fivefold in the last five years and will increase threefold in the next five. It projects data traffic will grow at a compound annual growth rate of 23% from 2014 to 2019.

The transit stage

Organizations just starting out often need just a few network providers. They should look for companies that offer access to a lot of networks, because more networks competing in the same place means lower transit prices. Equinix brings together more than 1,000 networks globally, and our data transit costs are up to 75% lower than the general market. A recent study by Telegeography estimated the general market transit price was $3.82 per megabits per second, compared to 94 cents at Equinix.

Public peering

As data traffic increases, it’s logical for an organization to move to public peering on an Internet Exchange, where that traffic can be more efficiently handled. It’s important to choose a high-traffic site where the most peers are in a single location. That lowers costs, because less equipment and fewer transport links are needed to reach who you want to reach. Equinix makes sense here, as well, because we host the world’s largest Internet exchange, with the most global peers (about 20% more than our closest competitor).

Private peering

Finally, as its volumes really expand, an organization may start exchanging enough traffic with certain partners that high-volume, private peering with those individual entities makes sense. Again, it makes sense to choose facilities where the most private peers are found, and, again, Equinix has more than anyone with 1,000. That’s double our largest competitor.

The campus model

Through every stage of the peering lifecycle, there are two basic peering models to choose from: the distributed model and the campus model.

In a distributed model, peers are colocated among multiple data centers (potentially operated by different providers) that are spread out in a particular area and connected by metro networks.

In a campus model, peering is hosted within the same data center building, or in a campus of buildings run by the same provider in which customers are connected as if there were in the same building.

Equinix strives to enable the campus model wherever possible, which lowers costs because customers need less equipment and no network connections. In addition, our campuses are network-dense. Equinix’s top 10 data center campuses each offer an average of 150 networks. Choice and flexibility are a priority. Space to grow is the result.

Learn more about Equinix’s peering options.