Re: Leaving public peering?

[Mehmet Akcin <mehmet () akcin net>]

On Dec 2, 2009, at 4:00 PM, Patrick W. Gilmore wrote:

> On Dec 2, 2009, at 4:48 PM, Jonas Frey wrote:
>
> > the DE-CIX pricing is now 500 Euro/month...since 1st october...see end
> > of that page.
> > Both DE-CIX and AMS-IX have decreased their pricing this year..almost at
> > the same time. I guess this is a move to stop company leaving public
> > exchanges...i have seen this trend, too.
>
> That is not why LINX lowers its prices.  (I cannot say why AMS-IX lowers its prices.)
>
> LINX is a member-based organization.  The member _own_ the exchange.  They are paying themselves, and they only pay 
> themselves as much as it costs to run the exchange.  With more members, more scale, and advances in equipment, unit 
> (i.e. port) costs go down.
>
> In a cost-recovery model, that means prices drop.
>
> LINX dropped prices mid-year 2009, and are dropping prices again in January 2009.  AMS-IX dropped prices once in that 
> time.  DE-CIX actually raised its prices for many members, so they could lower their prices for others.  Interesting 
> strategy....


Yeah I have had researched multiple exchange points across the world in recent months and i can say, not only AMS-IX / 
DE-CIX but pretty much everyone out there is lowering the prices, it might be because of few reasons, 

lifted regulations from governments regarding laying new fiber, and operations.. economic reasons, operational 
advantages vs cost... I am sure all Exchange management have considered those and started re-pricing their service 
offerings. The other thing people also notices that, you really never are able to get to a big network if you are a 
small one via exchange due to peering requirements of these big ISPs, so they rather go and get transit and don't worry 
about maintaining peering sessions with something+ number of peers, but simply 2-3 transit providers who have decently 
been chosen. Also with a good homework, you can practically achieve great results that way... still sad to see a lot 
departing from public exchange points.. 

Mehmet