Is there a case for Internet Exchange Points in Internet edges?

We have recently witnessed proliferation of Internet Exchange Points (IXP) in remote locations, away from the main traffic hubs. More and more IXPs are established in S.E.Asia, Africa, Middle East; some by NPOs (e.g. ISOC, NSRC), some by well established Exchanges (e.g. DE-CIX), and some by local for-profit ventures.

Local IXP serves as the meeting point between local networks, instead of exchanging traffic abroad, as viewed in the following image (source: Analysys Mason).

Traffic flow without (left) and with (right) IXP

Traffic flow without (left) and with (right) IXP. Source: Analysis Mason, 2012

The benefits in having a local IXP are:

  • Saving international bandwidth cost
  • Improving QoE by reducing latency for local content
  • Encouraging hosting of local content
  • Pulling in international CDNs
  • Enabling local online services (e.g. governmental)

The commercial value of setting up an IXP in emerging markets is quite elusive. Critical local traffic mass is required to justify IXP establishment. Yet international capacity prices, poor QoE and lack of local content inhibit accumulation of such mass.

At DiViNetworks we continuously analyze which IXPs to join and connect to our DiViCloud network. Looking at the global data flow, we calculate the benefits our customers and will enjoy if we join an IXP. We have already directly joined  HKIX (Hong Kong), Equinix-Singapore, Equinix-SydneyMSK-IX (Moscow) and PTT Metro (Sao Paulo). We participate in all major IXPs through our upstream providers and plan to join additional IXPs soon.

Packet Loss – International and Access – Asia, LATAM, Africa

Handling over 100Gbps for over 50 ISPs worldwide, combined with smart devices on international and domestic PoPs, the DiViCloud Network holds a unique view on packet flow in international networks.

We recently are taking a closer look at packet loss on international and domestic links. Surprisingly, high packet loss occurs also during off-peak hours, without any congestion on the line – see results below. Such packet loss results in compromised QoE.

Packet loss – International and Access – DiViCloud’s Hong Kong PoP – Serving S.E.Asia

Packet loss – International and Access – DiViCloud’s NYC PoP – Serving LATAM

Packet loss – International and Access – DiViCloud’s Amsterdam PoP – Serving Africa

Summary of the above findings is presented below.

Packet Loss on International Links as Measured by DiViCloud

Holding both sides of the link, DiViNetworks can almost eliminate such packet losses, significantly improving end-users QoE.

An interesting case occurred this week, when a carrier providing transport from Singapore to one of our customers, suffered fiber fault. The following figures present the packet-loss rate prior to the fault, and during the fault.

Packet loss – International and Access – DiViCloud’s Amsterdam PoP – Serving Africa

Packet loss – International and Access – DiViCloud’s Singapore PoP – Serving S.E.Asia – During Fiber Fault

Additional observations are offered in our Global Data Flow Report.

How did we get access to data flows of 100 ISPs worldwide?

Our Global Data Flow Report became very popular, with hundreds of downloads and shares. We received many questions about the report and its observations. The #1 question had to do with the way we gained access to the data.

Our DiViCloud network serves ISPs worldwide with virtual capacity. DiViCloud comprises of PoPs (points of presence) located at major Internet junctions.

Close to 100 ISPs are served by the DiViCloud network. 100% of the international downstream traffic to the served ISPs passes through these PoPs. As traffic passes through the PoPs, the software in the PoPs collects traffic statistics. These statistics serve as the raw data for the current report.

The information gathered includes: Originating AS (autonomous system), Destination AS, Traffic volume and Bit-stream repetition. We analyzed this raw information to obtain the analyses in the report, such as the one below.

Please share you observations or questions about the Global Data Flow Report.

CDN Contribution to Int’l Traffic in Different Regions

Our Global Data Flow Report Is Now Available

As our earlier blog posts here and here, we discussed global data flow and how we would publish our findings in DiViNetworks’ Global Data Flow Report. DiViNetworks holds a unique point of view – global PoPs positioned at strategic Internet junctions, combined with intelligent software overseeing masses of international traffic. This position enables us to study global data flow characteristics and trends. We would like to share these observations with you.

Below is an example of one of the graphs illustrated in the report to show originating AS source in different regions.

Originating AS (autonomous system) source in different regions

If you would like to gain access to the complete Global Data Flow Report – September 2012 please click here.

Slowdown in global Internet growth – trend or hiccup?

According to Telegeography’s Alan Mauldin, Global Internet capacity reaches 77Tbps, yet the growth is in decline due to a proliferation of CDNs and Cache.

The observation is indeed true, but it should be noted that the entry of a CDN or local Caching has merely a one time impact on growth ratios.

The analysis below simulates a single network operator, with some basic growth assumptions. Once the CDN and/or Caching solution is introduced into the network, a singular deceleration of international traffic is witnessed. In the following year demand reverts back to the organic pace – which is the product of broadband penetration and broadband speed.

The deceleration observed by Telegeography is a result of gradual introduction of CDN and/or Caching solutions . As such, systems will cover the market growth and return to its organic pace.

Want to learn more about Global Traffic? Follow our LinkedIn for or you can go here and fill out a form to be notified when the Global Data Flow report is available.

New DiViCloud PoP in Sydney, Australia

We’re happy to announce the DiViCloud network expansion with our newest DiViCloud PoP in Sydney, Australia. We now operate 12 PoPs worldwide.

The DiViCloud PoPs Map

DiViCloud PoPs are located close to content sources, rather than close to eyeballs.The opposite is true for a CDN which is placed close to the content consumers. By selecting such locations, DiViCloud can apply the technology on almost all the traffic transferred to the ISPs and thus generate more virtual capacity.

How do we know where to place PoPs? We continuously analyze traffic sources and routes. As we see more traffic originating in a new location we conduct an economic analysis for capturing this traffic. We need to conclude if the price gap can be bridged with this part of the traffic.

Since we have started serving virtual capacity to the pacific, we learned that more and more traffic originates in Australia. The main driver being CDNs, who established and scaled up their Australian PoPs. Wholesale capacity economics in Australia and the pacific is challenging jigsaw puzzle; and we have solved it.

Using our new PoP we can now improve our service to Australia, New Zealand and Pacific ISP customers.

Adding S.E.Asia and Carrier Traffic to our Global Data Flow Report

We recently released a first glimpse to our Global Data Flow report. Located at major Internet junctions, the DiViCloud network oversees masses of traffic in different locations, providing us with insights about traffic patterns and sources. Below is an updated graph, which includes information about traffic in S.E.Asia, as well as traffic originating from major local and global carriers.

CDN and Carrier contribution to ISP’s traffic, as measured by DiViCloud network in: LATAM, Africa, Europe, S.E.Asia and CIS.

Follow our LinkedIn or you can go here and fill out a form to be notified when the report is available.

Global CDN traffic contribution in LATAM, CIS, Africa and Europe

We recently announced our Global Data Flow report, analyzing the flow of mass data in our growing DiViCloud network. We are busy finding our way in the masses of information accumulated in our PoPs, so in the meanwhile I wanted to give you a glimpse.

Global CDNs (content distribution networks) play a primary role in traffic flowing into ISP networks, comprising around 40% of the overall traffic volume. The figure below depicts the CDN mixture in various territories.

CDN Traffic Contribution DiViCloud

CDN contribution to ISP’s traffic as measured in the DiViCloud network

The Global Data Flow report will include, inter alia, the contribution of global CDNs  by territory, network, time-of-day and other factors. We will also analyze other sources of content, their logical and geographical flow, as well as overlaps and differences between ISPs in different territories.

Follow our LinkedIn or you can go here and fill out a form to be notified when the report is available.

Euro 2012 – A view from the content side

In yesterday’s post I decrowned the Internet as the medium for watching planned live event. A comment from Svetoslav Hristov of Evolink revealed a different picture. Evolink put Euro 2012 online for the Bulgarian national TV. See figure below.

Evolink CDN traffic during Euro 2012 semi-finals and final

As opposed to the decline in traffic viewed at Internet Exchanges (IX) during matches, Evolink’s traffic increased from around 5Gbps to over 17Gbps during the final. That’s a very high impact compared to around 60Gbps total Bulgarian IX traffic.

The decline in IX traffic as observed by RIPE is due to people being busy with watching the match on TV or Internet. It would have been much deeper if live traffic was omitted.

Can Broadband Access Heal The World Economy? (To be discussed at G20)

In an open letter the ITU (International Telecom Union) urges G20 leaders, meeting in Mexico next week, to define targets making broadband affordable in all countries. ITU claims that Broadband (BB) is the remedy to recession and recommends top-priority targets:

  1. Universal BB policy – all countries should have BB plan
  2. Affordable BB – by regulation and/or market forces
  3. Connecting homes to BB – 40% of homes in developing countries
  4. Getting people online – 50% of population in developing countries should be Internet-literate

Providing affordable BB in developing countries is not a simple task. Take a look at the table below depicting two cases, serving a territory with population of 500,000 in developing vs. developed country.

Apparently, the transport cost, just to ensure reasonable ROI, is highly sensitive to physical distance and link utilization, rendering transport to developing countries extremely expensive. Carriers are therefore reluctant to invest in such links, making international data transport a monopoly exactly in those cases in need.

Regulation can only press vendors’ profit margins. Market forces are totally irrelevant in the developing world. Connecting developing countries to the world is therefore up to pseudo-philanthropy (a la World Bank), or to technological solutions changing the table above. And guess what – such are DiViCloud and DiViLive.