One of the things from our side of this is we are currently getting a reasonably good service from APE and they are directly available to us (SkyTower)

I found the Megaport launch announcement very interesting and while some clarity around the pricing details was made I am very interested in seeing how things come out in the wash. The VxC may be helpful re my IX Australia (maybe they will have a name change now) points below but also I am very interested in seeing how this may impact the market. Could be very interesting if we got content providers directly peering to these IX���s over Megaport connections (Using their Australian POPs but linking into the NZ Megaport IX so if you came onto the Megaport IX Offering then the providers had already brought themselves to our doors). This is one thing I will be monitoring as our traffic volumes are high enough for direct peering with some of the large content players but only if we are at the same facility. This could allow us to long line that.

For IX Australia���s new IX Its only available at 220 Queen (we can get Megaport VxC for that) but we are not in there yet so until it gets a little bit of sign up I can���t get money for us to join in (but again thanks to Megaport not requiring long terms on links much easier to get approval for it)

So very exciting times for everyone and would be great if people would be willing to let us on list know who is bringing connections into it (content or eyeball) so that those of us very small fish in (relatively) small pond worldwide can look at our priorities for connecting (where I should fight the strongest for first)

Thank you Tim for your insights.

Regards
Alexander

Alexander Neilson
Neilson Productions Limited

alexander@neilson.net.nz
021 329 681
022 456 2326

On 12/11/2014, at 10:18 am, Tim Hoffman <tim@hoffman.net.nz> wrote:

All,

We���ve had some interesting announcements of Megaport and IX Australia building internet exchanges into NZ over the last week or so. I���ve been a bit surprised at how little chatter there has been around this on the list.

I thought I���d put some thoughts down (as someone who has worked for a bunch of networks in NZ and is now overseas working for big content) with hope of kicking off a discussion.

At a 10,000 foot view, New Zealand has had a reasonably successful operation of IXs over the last 10-15 years. All of y���all except for the two big operators openly peer. This is awesome!

However, as has been discussed in other posts recently;
1/ More and more of the internet is becoming about connectivity from CDNs to users.
2/ More and more CDNs are coming to New Zealand and Australia
3/ Trans-tasman capacity isn���t hugely expensive

Addressing points (1) and (2), as content comes into New Zealand, we have to remember that on a global scale, New Zealand is absolutely tiny. It���s a hard business case to get a POP there as a content provider. Content providers that do come are likely just going to put in a single location - Auckland. So while WIX may make sense for ISPs in NZ peering with each other, for the bulk of the *interesting* content on the internet that you can get through peering, you���re going to have to get it in Auckland. Networks have outages, planned works, etc. So assuming that most of NZ���s interesting content is in Auckland (with a bit more over the Tasman, which isn���t too expensive to get to these days), it makes sense to have multiple (redundantly built and managed) ways of getting at this content.

It���s interesting looking at the differences between the 3 IXs we���re about to have.
  • Citylink, who have the critical mass of all the peers, are in the most locations, and are the most expensive. They���ve also got a product set around metro ethernet, dark fibre, and have a CDN running. And they���re doing some interesting things around a ���SDN driven IX���.
  • Megaport, who have placed huge focus on their ���Virtual Cross Connect��� product and being able to configure this on the fly, but also have run a pretty successful IX.
  • IX Australia, who are very IX focused, and have gone to great pains to ensure that that���s their only product, making them the most ���independent���. IX Australia also have public graphs of traffic levels through their IX (i.e. for NSW-iX http://monitor.nsw.ix.asn.au/cacti/graph_image.php?action=view&local_graph_id=91&rra_id=2) - which is commendable (it would be nice to see Megaport and Citylink follow suit on this one)
I suspect you���re going to find that most of the content will try to get to all 3. It���s my hope that most of the bigger ISPs try to get to all three, then the smaller ones can go to a couple, get most NZ routes reliantly over peering, and then transit the rest if it has to happen. It would be disappointing if we didn���t see the top 5-6 IXs + all the content providers on all of them. Also it���ll be important to ensure that the result isn���t just that we have 3 split IX communities, all with different content/users on them without crossover, as this would cause a huge barrier to entry to smaller players if they have to connect to all 3.

For the community, having this competition is going to be a win. It won���t kill APE, which has huge critical mass, and has done a great job in it���s long history, but will ensure that all 3 IXs keep each other honest. What will be interesting to see is who turns up at which IX and how they all grow together.

What���s everyone else���s thoughts? It would be interesting particularly if there is anyone from Citylink, or any of the big ISPs, who could comment on their take on these developments in the market and where they will be peering?

Cheers,
Hoff

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