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NAPs and MAEs

• NAP: Network Access Point • MAE: Metropolitan Area (A NAP run by MCI WorldCom)

• 1995: 5 U.S. NAPs - MAE East, MAE West, NY (Sprint), () and Palo Alto (Pac Bell) (per NSFnet bidding process)

• 1999: 55 Major NAPS world wide (Europe 22, Asia Pac 17, No. Am. 11, LA3,Africa 1, ME 1)

Source: Telegeography 2000 33 What is a NAP/MAE?

Operated by telcos (e.g. MCI WorldCom, Sprint, Pacific Bell) and others (e.g., LINX, PAIX, SCOTIX...) •A facility that provides services to ISPs: connectivity to the NAP/MAE, collocation space, switching platform used for interconnection • Is not a substitute for an ISP • Does not compete with ISPs • Does not "provide " - provides access to the medium over which peering ISPs exchange data • Does not route data 34 Major NAPS in EUfGpe

Northern Europe

• Amsterdam Exchange (AMS-IX) • KTHNOC (formally the dGIX) • INEX - Ireland Neutral Exchange • fiCIX - Finnish CIX • World.IX - European Commercial IX (Edinburgh) • DIX - Danish Internet eXchange • SCOTIX Scottish Internet Exchange • DGIX - Stockholm, Sweden • Network Access Point • NIX - Oslo, Norway • LoNAP • (LINX) Southern Europe • deCIX - Deutsch CIX • I.S.A.R Netzwerke GmbH • ESPANIX, - Madrid Interconnect Exchange • CIXP - CERN exchange for central Europe • CATNIX - Barcelona • TIX - Zurich, Switzerland) • CyIX Cyprus • SIX - Switzerland • PIX - Portuguese • PARIX - The Paris ATM Network Access Point • MIXITA. Milan Internet Exchange. • Luxembourg Internet eXchange • AIX - Athens Internet Exchange • VIX - Vienna Internet eXchange • NAP Nautilus -A Rome exchange point • SFINX -A Paris activity • Grenoble, France Sources: www.ep.net/naps eu.html, TeleGeography 2000 • BNIX - Belgium • MAE-FFM - Frankfurt, Germany • MAE - Paris, France 35 - ;;.11

36 ~LWhatlsPeerin~ ?

Peering

Point Point

Network 1 Network 2 Network 3

• Peers exchange traffic with each other at no charge • Connections established in multiple ways .... from robust peering at direct peering points or by establishing "minimal" connections (via BGP sessions) at "public peering" points (e.g., MAE East &West) • Peering agreements DO NOT allow transit. You can reach any address (or customer) on your peer's network .... but cannot reach any other Internet networks through that peer 37 Internet - Interconnection "Public" Peering at EXCHANGE POINT/NAP Washington D.C.

NAP provides: - Colocation Space - Connectivity - Switching Facility Peers enter into peering arrangement

38 Internet - Interconnection "Direct" Peering at Hub

Los Angeles

Each peer obtains own: - Colocation Service - Connectivity Peers enter into peering arrangement

39 T-he-Ecenemics·ofPeering

small provider (X) with a local Large Worldwide Provider network in London o Kensington ~ Peering

Hyde Park

Point Charing Cross Road 0 in London Canary Wharf ' , LA Atlanta Sydney

Users in London dial locally 2..... if peered, X hands off traffic to 3..... if traffic comes from a larger ISP . t X' POP d· larger ISP in London incurring user in Frankfurt, larger ISP carries os .... sen Ing NO COST other than local traffic through its network from information to user of larger charge. Larger ISP must then Frankfurt to London and hands off ISP in Los Angeles or carry the traffic to Sydney via its the traffic to X user in London .... Sydney worldwide network who has (again) only the local London cost 40 The Economics of Peering Continued ....

mall provider (X) with a local Larger Worldwide Provider network in London o Kensington ~ Peering

Hyde Park f

Point Charing Cross Road b in London Canary Wharf LA Atlanta Sydney

If , there is NO incentive for anyone to build networks and add capacity....

41 Current Internet Services

• Dedicated • Dial-up modem access • Specialized networks Internet • Connectivity through • Corporate Intranets connections national backbones • Customized network services (web design, • Sold on wholesale hosting) • Sold directly to basis to consumer businesses and service providers for resale to consumers • Sold directly to wholesale thru businesses ISP resellers 42 Internet Observations

• 75% of traffic on Internet is WWW • 3.6 Million Web Sites (OCLC Jun 99) • • 300-700 Million web pages (and dark info) • 500/0 of info in 25,000 sites • Data Prevalence (20% voice, 800/0 data) on MCI WorldCom fiber backbone • 8000 ISPs worldwide (4700+ in U.S.) • Traffic growth 100-1 OOO%/year reported 43 Internet Observations: Europe

• In 1997, most Internet traffic originating in Europe went to the . As of late-1999, two-thirds of international Internet traffic originating in Europe remains in-region (TeleGeography 2000, at ; 106). I.-',.r Y 1998, the rate of Internet user growth in Europe overtook that of ~ e United States. (Morgan Stanley Dean Witter, The European Internet Report, June 1999).

• Market capitalisation of recent European Internet IPOs:

• Terra Networks (Spain) - EUR 16.4 Bn • Freeserve (UK) - EUR 8.4 Bn • QXL (UK) - EUR 2.2 Bn • Tiscali (Italy) - EUR 1.7 Bn 4 Internet and MultiMedia

• Internet multicast "video", telephony and "radio" (MP3, MPEG) • Transport of Internet traffic on cable, direct broadcast satellite, radio and broadcast TV • Real-time quality of service support, VOIP e.g. MCI WorldCom's "Click 'n Connect" • Handwriting and voice recognition (to overcome Roman keyboard limitations?)

45 Internet-enabled Devices + Information appliances .1997 - 3 M, 1998 - 6 M, 2002 - 56 M (IDC) + WebTV, Palm-Pilot, Nokia 9000,Sony, Nintendo, Sega games (video conf) + Refrigerator (and the bathroom scales) + Automobiles, household appliances (turning a box of soap into a service) + "Reading" glasses • Web-server on a chip (see next slide) 46 UMASS Web server on a chip born 10 AM, 14 July 1999

• TCP/IP code itself fits in about 256 bytes (12-bit) • PIC 12C509A, running at 4MHz • 24LC256 i2c EEPROM • HTTP 1.0 and RFC 1122 compliant • eternity.cs.umass.edu: 9080/indexO.html

47 eCommerce Intensifies

• Cisco Systems - $1 DB/year • $20M/day Web sales • 80 % of sales via Web; $550M cost saving • Dell Computer -$18.2B/year • $14M/day Web sales; 350/0 of total • Intel - $26B/year • $1 B booked within 15 days of Web start

48 Internet Transactions ($Billions)

• Goods and services 350 traded between 300 companies from $8 250 c billion this year to 200 o 1­- $327 billion in 2002 150 -"-m ~ 100 50 o 7-9. 7-9. '"':9 ~o ~o ~o Source: Forrester Research ;p> ;PcP i9.p 00 07 ~

49 iCommerce in 2003

+ Commerce sales will be between $1 .8 trillion and $3.2 trillion in 2003. + Estimates include business-to-business and business-to-consumer sales and EDI orders placed on the Internet, but exclude the value of financial transactions.

50 Customer Service on the Net

• "Self-Service" theme -FAQs (frequently asked questions) + Customer forum (customers help each other - but risky unless moderated) + Bill Presentment and payment (email is my preference) + Proxy voting

51 New Business Opportunities

+ eBay's virtual bidding program (knowledge robot) + Amazon's links to InfoSeek and AltaVista + Emailed Web page production proposal (virtual export of labor force) + Irving Wladawsky-Berger's multi-faceted sales channel scenario (common database)

52 Policy Issues

+ Cryptography and export (recent change) + Trademarks and Copyright + Regulatory Framework + Liability and Dispute Resolution + Convergence (TV, Radio, Telephony) + Taxation + CensorshipNoluntary Filtering + Digital Signatures/Certificate issuance 53 • • +-' s... co ~-o +-' c o ::J -oJ2 c CO CDs... en co CD c ._-0 0 Ci5+:ico ...en E 't:Q)J2s... o1 .-c

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