Tag: Internet Exchanges

Last week, there was this announcement about the establishment of a new Internet Exchange point in New York by the US arm of the Amsterdam Internet Exchange – “AMS-IX New York” – or should that be “New Amsterdam”… 🙂

This follows on from the vote between AMS-IX members about whether or not the organisation should establish an operation in the US was carried by a fairly narrow majority. I wrote about this a few weeks ago.

This completes the moves by the “big three” European IX operators into the US market, arriving on US shores under the umbrella of the Open-IX initiative to increase market choice and competitiveness of interconnection in the US markets.

LINX have established LINX-NoVA in the Washington DC metro area, and AMS-IX are proceeding with their NY-NJ platform, while DECIX have issued a press statement on their plan to enter the NY market in due course.

One of the key things this does is bring these three IXPs into real direct competition in the same market territory for the first time.

There has always been some level of competition among the larger EU exchanges when attracting new international participants to their exchange, for instance DECIX carved itself a niche for attracting Eastern European and Russian players on account that many carrier services to these regions would hub through Frankfurt anyway.

But each exchange always had it’s indigenous home market to provide a constant base load of members, there wasn’t massive amounts of competition for the local/national peers, even though all three countries have a layer of smaller exchanges active in the home market.

Now, to some extent, they are going head-to-head, not just with US incumbents such as Equinix, TelX and Any2, but potentially with each other as well.

The other thing the AMS-IX move could end up doing is potentially fracture even further the NY peering market, which is already fractured – being served by three, maybe four, sizeable exchanges. Can it sustain a fifth or sixth?

Is it going to be economical for ISPs and Content Providers to connect to a further co-terminous IXP (or two)? Can the NY market support that? Does it make traffic engineering more complex for networks which interconnect in NY? So complex that it’s not worth it? Or does it present an opportunity to be able to more finely slice-and-dice traffic and share the load?

Don’t forget we’re also in a market which has been traditionally biased toward minimising the amount of public switch-based peering in favour of private bi-lateral cross-connects. Sure, the viewpoint is changing, but are we looking for a further swing in a long-term behaviour?

We found out from experience in the 2000s that London can only really sustain two IXPs – LINX and LONAP. There were at least 4 well-known IXPs in London in the 2000s, along with several smaller ones. (Aside… if you Google for LIPEX today, you get a link to a cholesterol-reducing statin drug.)

Going to locations on the East Coast may have made sense when we sailed there in ships and it took us several weeks to do it, but that’s no reason for history to repeat itself in this day and age, is it? So why choose New York now?

Will the EU players become dominant in these markets? Will they manage to help fractured markets such as NY to coalesce? If they do, they will have achieved something that people have been trying to do for years. Or, will it turn out to be an interesting experiment and learning experience?

It will be interesting to see how this plays out over time.