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PLNOG 7: Jos Martens, Bart van der Sloot - Internet updates from around the world

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This document provides an agenda and summaries of topics that will be covered in an internet updates webinar from around the world. The agenda includes updates on Global Crossing, cloud computing opportunities, net neutrality in the US and Europe, and balancing cost and quality when buying IP transit and extending peering relationships. A summary of Global Crossing is also provided, outlining its global network and services. The document examines opportunities for communication, infrastructure, platform and security as cloud computing services and how these services are enabled by Global Crossing's global IP network. Net neutrality regulations in the US and Europe are discussed. The challenges of balancing network costs and quality when purchasing IP transit and peering relationships are also summarized.

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Internet updates from around the world Bart van der Sloot, Director Carrier Services Jos Martens, Marketing Director Worldwide Carrier Services
Agenda  Update on Global Crossing - Bart  Cloud computing: where is your opportunity in the value chain? - Jos  Net Neutrality in the US and Europe: the end of the “All you can eat” model? -Bart  Balancing cost and quality: buying IP Transit, extend peering - Jos  Closing - Bart
GLOBAL CROSSING WHO WE ARE AND WHAT WE DO
Global Crossing at a Glance 4 Global Enterprise Network, VOIP, Collaboration and Data Centre Services The Carriers’ Carrier: High capacity Transport Services Tier 1 Internet Backbone Services in over 700 cities in over 70 countries Unparalleled global sub-sea & terrestrial network Core Network self built / self operated / fully owned Team of over 5000 professionals in North America, Latin America, Europe and Asia Core Network
Transport Services Private Lines  Resilient, high performance network (SDH/SONET technology)  Protected Service with Bandwidths from T-1/E-1, OC3/STM1, OC12/STM4, and OC48/STM16  Business Continuity: Diversity, Avoidance, and Customer Specified Routing  End-to-end E-1 capability on international connections into North America  Ethernet interfaces available Wavelength  Linear/unprotected, bi-directional, point-to-point connection  2.5 or 10 Gigabit SDH/SONET framed signal  Ethernet Wavelength service 1 & 10 Gigabit Ethernet (LAN/PHY, WAN/PHY)  Ability to connect Asia, Europe, North America, and Latin America  40G available in North America and Europe  Propagation delay SLA for low latency routes, validated at turn-up  Diversity scenario’s available: Diverse from competing vendor or from existing Global Crossing circuit(s) Carrier Applications  Internet Backbone  Private Voice, IP, Ethernet, ATM, or FR Networks  Re-sale of Private Line  Voice Traffic Backhaul End-User (your customer) Applications  Data Center Connectivity  Multiplexing Multiple Applications (voice, video, IP)  Entertainment Content Distribution  Private IP, Ethernet, ATM, or FR Networks 5
IP Transit Recognized Tier 1 ISP with extensive global private and public peering reaching 100% of the Internet One seamless global IP network (AS#3549) with end-to- end control • Over 5 Tbps peering capacity • Present not only in North-America and Europe, but in Latin America, Asia and Australia as well • Strong focus on network security and keeping malicious traffic off the network • First to deploy native IPv6 globally (2006) • BGP Automation (RADB) Direct connectivity with top Internet destinations  Content: Google, Facebook, Youtube, Yahoo, Live, Blogspot, MSN, Amazon  CDN’s: Akamai, Limelight, nLayer, CD-networks, EdgeCast  Major access networks and other Tier1’s Renesys reports Global Crossing as 2rd most connected backbone Tier 1 ISP, globally 6
Central & East European POP expansion • Added in the last 24 months: – Bratislava, Slovakia, Sitel building at Kopèianska – Bucharest, Romania, NXData Feper Building (NXDATA-1), – Sofia, Bulgaria, Neterra in the Sofia Teleport/Data Centre – Kiev, NewTelco – Budapest, Hungary, BIX/CE Colo building – Warsaw, Poland, at LIM Building (PLIX) – Helsinki, Finland at Kvaidankatu 2 • All pops are diversely connected to the GC IP backbone with multiple 10G uplinks • Connected Istanbul, Turkey on diverse STM4 providing SDH and Ethernet services – Pantel PoP location 7
Top 13 IP Transit Providers 8 “The rankings are a rather crude measure of size, as they are based entirely on the quantity of IP space ultimately transited by each provider. However, it's the ranking trends that are more revealing than any absolute number” (source: Renesys Blog 2011)
Tier 1?.... Second in Renesys Ranking?.... Network into LatAm, Asia, Australia? Central & Eastern European Expansion.... So what? • 40-50% of our traffic stays On-Net • End-to-end transport across 5 regions means…. • Maximum control of latency and packet loss • Independent from peering capacity with other networks • Best security against malicious traffic • Better end-user experience and lower total cost of operation to run your network9
PLNOG 7: Jos Martens, Bart van der Sloot - Internet updates from around the world
Integrating with Level3 – overview Level 3 to Acquire Global Crossing Combination Creates a Premier Global Communications Provider with Extensive Network Reach, Global Scale and a Comprehensive Service Portfolio to Deliver Enhanced Capabilities to Customers …. BROOMFIELD, Colo. and FLORHAM PARK, N.J., April 11, 2011 – Level 3 Communications, Inc. (NASDAQ: LVLT) and Global Crossing Limited (NASDAQ: GLBC) today announced that they have entered into a definitive agreement under which Level 3 will acquire Global Crossing in a tax- free, stock-for-stock transaction. The combined company will operate a unique global services platform anchored by fiber optic networks on three continents, connected by extensive undersea facilities. The combined network will serve a worldwide customer set with owned network in more than 50 countries and connections to more than 70 countries. This transaction will create a company with pro forma combined 2010 revenues of $6.26 billion and pro forma combined 2010 Adjusted EBITDA of $1.27 billion before synergies and $1.57 billion after expected synergies.
Power of the Combined Company  A services platform based on a world class set of assets  Multi-conduit, long-haul terrestrial; extensive submarine fiber networks  Metro networks with dense fiber connectivity  Data centers and colocation facilities on three continents  Content delivery technology and intellectual property rights
Combined Company Overview
CLOUD COMPUTING: WHERE IS YOUR OPPORTUNITY IN THE VALUE CHAIN
Our Point of View on Cloud Services The Cloud is more than just computing. It is a new way of thinking about consuming and delivering networked technology. 15 Senior Analyst Frost & Sullivan © 2011 – Global Crossing
Our Point of View on Cloud Services The Cloud is more than just computing. It is a new way of thinking about consuming and delivering networked technology. 16 Senior Analyst Frost & Sullivan © 2011 – Global Crossing
Our Point of View on Cloud Services The Cloud is more than just computing. It is a new way of thinking about consuming and delivering networked technology. In the Cloud:  Services that can be consumed remotely over the network  Dynamic growth and scaling without operational impact  Highly available and resilient services  A New Consumption Model  Automated service activation  from port-based or circuit-based to per-seat or usage model Give the user the control, without the hassle. Move the applications from the LAN to the WAN A Global IP network is the key to enabling cloud to be used in a consistent, predictable, and reliable way 17 Senior Analyst Frost & Sullivan © 2011 – Global Crossing
Market Opportunity 18 Total Market Opportunity is $46B in 2008 growing to $150B in 2013, a 5 year CAGR of 26.5% Why The Cloud Is Inevitable Gartner View of Areas of Cloud Computing Security Performance Availability Integration Customization Interworking Top CIO Concerns With Cloud Computing
“Communications” as a Service Audio and video SIP collaboration with presence, IM, and web communications are combined by customers to create a targeted experience “Infrastructure” as a Service Flexible computing and storage capacity with metered usage “Platform” as a Service Platform for application development , hosting and virtual computing “Security” as a Service Network based security protection, detection, and filtering “Software” as a Service Hosted applications with network service level agreements (SLAs) Global Crossing’s Cloud Services are Anchored In Our Global IP Network 19 -Global Crossing Proprietary– Not for Further Circulation without Company Permission See Global Crossing’s view @ http://blogs.globalcrossing.com/?q=content/thrill-caas
Communication as a Service 20 -Global Crossing Proprietary– Not for Further Circulation without Company Permission • SIP-based Audio Conferencing • MPLS connection with Quality of Service (QoS) • Customer facing API for integration with enterprise applications (using Global Crossing Connect) • Smart Phone Apps for roaming users • Per shared seat bundled pricing • uCommand® seat-based utilization reporting CaaS is a High Quality Audio Collaboration application offering high touch enterprise features in a cloud-based, as-a-service model. These includes:
CaaS is Unified Collaboration • The Audio bridge is a shared resource in the cloud. It calls you in stead of you calling into the bridge • Control is at your hands on your desktop or smartphone • Integration with your calendar and contacts • At a per seat price, not metered
“The sophistication and targeted nature of attacks are becoming too much for small security staffs to handle.” Forrester Research, Inc.: “Market Overview: Managed Security Services” by Khalid Kark, March 2010 © 2010 – Global Crossing 22
Security: A Challenging Environment Increased use of wireless networks Remote employee access of critical information Social networking sites gaining widespread adoption Business processes and applications in the cloud Increasing demands for compliance to government standards
Percentage of Organisations infected by a virus or malicious software . The Threat Landscape 21% in 2008 62% in 2010 Percentage of Organisations who detected a significant attempt to break into their network. 31% in 2008 61% in 2010 Percentage of Organisations who detected an actual penetration by an unauthorised outsider into their network. 31% in 2008 61% in 2010 Source: “informationSecurity BreachesSurvey 2010” – by Price WaterhouseCoopersand commissioned by Infosecurity Europe, 28 April 2010
The Frequency of a Breach Large Organisations: • 2008: 72% reported a breach • 2010: 92% reported a breach • 2008: Average number of breaches was 15 • 2010: Average number was 45 Small Organisations: • 2008: 45% reported a breach • 2010: 83% reported a breach • 2008: Average number of occurrences was 6 • 2010: Up to 14 occurrences on average Source: “informationSecurity BreachesSurvey 2010” – by Price WaterhouseCoopersand commissioned by Infosecurity Europe, 28 April 2010
Damage to Reputation Customer Complaints 2008 - Cost of a Breach • The cost of a security breach for a large organisation ranged from £90,000 – £170,000. • For a small organisation, the cost ranged from £10,000 to £20,000. In 2010 – Significant Increase • A security breach for a large organisation ranged from £280,000 – £690,000! • For a small organisation, the cost ranged from £27,500 to £55,000! Source: “informationSecurity BreachesSurvey 2010” – by Price WaterhouseCoopersand commissioned by Infosecurity Europe, 28 April 2010 A Security Breach Can Cost a Company …
Global Crossing Security Solutions – a Trusted MSSP • Correlation • Aggregation • Reporting and Analysis • Security Analysts & Engineers • Personal response to alerts • 24x7x365 in Phoenix, Arizona, USA • Penetration Testing • Vulnerability Assessment • Security Policy Review & Creation • Security Audits • Incident Response • Firewall • Intrusion Prevention • Web Content Filtering • Antivirus/Anti-spam Security Appliance Global Crossing Security Consulting Security Information Event Management (SIEM) Security Operations Center (SOC)
NET NEUTRALITY IN THE US AND EUROPE: THE END OF THE “ALL YOU CAN EAT” MODEL?
Net Neutrality – what is it? Net Neutrality … is a principle that advocates no restrictions by Internet service providers or governments on consumers' access to networks that participate in the internet. Specifically, network neutrality would prevent restrictions on content, sites, platforms, types of equipment that may be attached, and modes of communication
Net Neutrality wasn’t that a US thing?  Net Neutrality used to be a US topic. It has now come to Europe.  New FCC Rules in US on Net Neutrality will go into effect on November 20.  The Netherlands and Belgium are preparing legislation.  The European Commission is preparing itself for a debate and decision.
Market Dynamics  Video creating large investment needs both in fixed and mobile networks  OTT (Over-The-Top) providers competing with access providers portfolios  Mobile operators losing SMS revenue to free and low cost IP based solutions like WhatsApp, Ping etc  Fixed internet access subscription fees still the dominant business model for internet access
Studies are being done on future model for the Internet
Internet Eco system by A.T. Kearney Study commissionedby: Deutsche Telecom, France Telecom, Telecom Italia and Telefonica
Conclusions from A.T. Kearney report, but…. Telco investors are seeing lower returns than investors in other players in the internet value chain. True? What about the global internet backbones? How many “other players” are successful? Telcos face ballooning capex (“this capex is unsustainable”) Is capex really growing? OSPs are not contributing to the costs of traffic In a two-sided market, both sides pay. …but who pays the bill? Ultimately the end-user….. Traffic charges are necessary because otherwise OSPs have no incentive to constrain traffic costs. …unless the end-user decides to avoid the service. OSPs can easily afford increased charges. … what about the smaller ones? Increasing retail prices for Internet access will be challenging. … charge heavy usage? It is practical to implement traffic charges to OSPs. …or to customers? Enhanced quality services can be introduced without degrading the basic internet . ..but how to ensure equal access and consumer choice?
Changes are happening  Mobile operators start to move away from flat fee internet models  Fixed carriers as well but still very careful  OSP’s might starts deals with access providers  Some start charging or prohibiting applications  THERE WILL BE CHANGE
What will the future bring? – As the A.T. Kearney study states we indeed need a “Viable Model or the future Internet” – There will be lengthy debates on what that model will look like however – Will consumers act with their feet? Or do we need neutrality legislation?
BALANCING COST AND QUALITY: BUYING IP TRANSIT, EXTEND PEERING
Peering Cultures?
IP Transit versus Peering Relations  Transit is a simple service from the customer perspective. All one needs to do is pay for the Internet Transit service and all traffic sent to the provider is delivered to the Internet and vice versa.  Peering is a limited routing table only exchanging customer routes  Supplier / customer relation versus Peers with no real transactional behaviour rules  Contract covered by SLAs, with peering this is often omitted  Transit is a metered service with benefits based on volume, vs peering with relatively fixed costs  Transit is a commodity with multiple suppliers to choose from. A peer can be a monopoly
Simplified Internet Model 40 Eyeballs Tier 1 Tier 2 Access Content Content Content Content Content ContentContent Content GX Tier 1 Tier 2 Access Tier 2 Access Tier 2 Access Tier 2 Access Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Transit providers play aggregator role
Economical model for peering? Source; Dr Peering
Economical model for peering? • Transit prices continue to decline Why are we in this Business???
Economical model for peering? • Transit prices continue to decline • But traffic continues to grow
Economical model for peering? • Prices continue to decline • But traffic continues to grow • What does this do to the Transit vs peering economical model Source; Dr Peering
What are the costs of peering • IX port
What are the costs of peering • IX port • Colo • Capacity from your location to the IX • The more traffic colo becomes less important • Backhaul costs remain a large chunk of the costs • Backhaul (100G) needs to become affordable € - € 0,50 € 1,00 € 1,50 € 2,00 € 2,50 1GE 10GE 100GE Peering Costs/Mb IX port Capacity Colo Equipment, Personnel costs not taken into account
Why And When Would You Peer  “Peering is a Local Optimization“, according to Bill Woodcock (research director of Packet Clearing House). Where local can be City, Country, Continent  Diversity and Redundancy in combination with Transit  Quality; more routing control, improved latency  Less dependency on your transit providers  Relationship building; Peering is often a strong community. This are also used to keep being informed on market dynamics  Historical reasons/peering culture
What Shapes a Peering Culture? Peering Culture Traffic Supply from content providers and CDNs Traffic Demand (market size – population combined with broadband penetration ) Internet Exchanges? Facilities (Carrier-neutral Data Centres)? Presence of international networks (tier1 networks, content) Dominant access network that controls the majority of eyeballs? Regulation?
Peering Challenges  It requires more IP routing expertise than simply buying a few transit pipes.  Peering can require more negotiation skills and can be less straightforward than just ordering an upgrade on transit. Personal relations play a big role  Problem resolution might be slower than with transit, which is coupled to an SLA  It requires more staff than just transit • You need to be involved in the peering community • You need to negotiate with multiple peers. Typically you have more peers than transit providers • Problem resolution is on both sides  Risks of de-peering, upgrade discussions, traffic ratio’s. With buying transit you move these discussions up stream
To Peer or not It really depends on the situation
Wanna know more? Ask us! Yuliya Boleslaw Kraus (boleslaw.kraus@globalcrossing.com) Jos Bart Nivaldo
Thank You

More Related Content

PLNOG 7: Jos Martens, Bart van der Sloot - Internet updates from around the world

  • 1. Internet updates from around the world Bart van der Sloot, Director Carrier Services Jos Martens, Marketing Director Worldwide Carrier Services
  • 2. Agenda  Update on Global Crossing - Bart  Cloud computing: where is your opportunity in the value chain? - Jos  Net Neutrality in the US and Europe: the end of the “All you can eat” model? -Bart  Balancing cost and quality: buying IP Transit, extend peering - Jos  Closing - Bart
  • 3. GLOBAL CROSSING WHO WE ARE AND WHAT WE DO
  • 4. Global Crossing at a Glance 4 Global Enterprise Network, VOIP, Collaboration and Data Centre Services The Carriers’ Carrier: High capacity Transport Services Tier 1 Internet Backbone Services in over 700 cities in over 70 countries Unparalleled global sub-sea & terrestrial network Core Network self built / self operated / fully owned Team of over 5000 professionals in North America, Latin America, Europe and Asia Core Network
  • 5. Transport Services Private Lines  Resilient, high performance network (SDH/SONET technology)  Protected Service with Bandwidths from T-1/E-1, OC3/STM1, OC12/STM4, and OC48/STM16  Business Continuity: Diversity, Avoidance, and Customer Specified Routing  End-to-end E-1 capability on international connections into North America  Ethernet interfaces available Wavelength  Linear/unprotected, bi-directional, point-to-point connection  2.5 or 10 Gigabit SDH/SONET framed signal  Ethernet Wavelength service 1 & 10 Gigabit Ethernet (LAN/PHY, WAN/PHY)  Ability to connect Asia, Europe, North America, and Latin America  40G available in North America and Europe  Propagation delay SLA for low latency routes, validated at turn-up  Diversity scenario’s available: Diverse from competing vendor or from existing Global Crossing circuit(s) Carrier Applications  Internet Backbone  Private Voice, IP, Ethernet, ATM, or FR Networks  Re-sale of Private Line  Voice Traffic Backhaul End-User (your customer) Applications  Data Center Connectivity  Multiplexing Multiple Applications (voice, video, IP)  Entertainment Content Distribution  Private IP, Ethernet, ATM, or FR Networks 5
  • 6. IP Transit Recognized Tier 1 ISP with extensive global private and public peering reaching 100% of the Internet One seamless global IP network (AS#3549) with end-to- end control • Over 5 Tbps peering capacity • Present not only in North-America and Europe, but in Latin America, Asia and Australia as well • Strong focus on network security and keeping malicious traffic off the network • First to deploy native IPv6 globally (2006) • BGP Automation (RADB) Direct connectivity with top Internet destinations  Content: Google, Facebook, Youtube, Yahoo, Live, Blogspot, MSN, Amazon  CDN’s: Akamai, Limelight, nLayer, CD-networks, EdgeCast  Major access networks and other Tier1’s Renesys reports Global Crossing as 2rd most connected backbone Tier 1 ISP, globally 6
  • 7. Central & East European POP expansion • Added in the last 24 months: – Bratislava, Slovakia, Sitel building at Kopèianska – Bucharest, Romania, NXData Feper Building (NXDATA-1), – Sofia, Bulgaria, Neterra in the Sofia Teleport/Data Centre – Kiev, NewTelco – Budapest, Hungary, BIX/CE Colo building – Warsaw, Poland, at LIM Building (PLIX) – Helsinki, Finland at Kvaidankatu 2 • All pops are diversely connected to the GC IP backbone with multiple 10G uplinks • Connected Istanbul, Turkey on diverse STM4 providing SDH and Ethernet services – Pantel PoP location 7
  • 8. Top 13 IP Transit Providers 8 “The rankings are a rather crude measure of size, as they are based entirely on the quantity of IP space ultimately transited by each provider. However, it's the ranking trends that are more revealing than any absolute number” (source: Renesys Blog 2011)
  • 9. Tier 1?.... Second in Renesys Ranking?.... Network into LatAm, Asia, Australia? Central & Eastern European Expansion.... So what? • 40-50% of our traffic stays On-Net • End-to-end transport across 5 regions means…. • Maximum control of latency and packet loss • Independent from peering capacity with other networks • Best security against malicious traffic • Better end-user experience and lower total cost of operation to run your network9
  • 11. Integrating with Level3 – overview Level 3 to Acquire Global Crossing Combination Creates a Premier Global Communications Provider with Extensive Network Reach, Global Scale and a Comprehensive Service Portfolio to Deliver Enhanced Capabilities to Customers …. BROOMFIELD, Colo. and FLORHAM PARK, N.J., April 11, 2011 – Level 3 Communications, Inc. (NASDAQ: LVLT) and Global Crossing Limited (NASDAQ: GLBC) today announced that they have entered into a definitive agreement under which Level 3 will acquire Global Crossing in a tax- free, stock-for-stock transaction. The combined company will operate a unique global services platform anchored by fiber optic networks on three continents, connected by extensive undersea facilities. The combined network will serve a worldwide customer set with owned network in more than 50 countries and connections to more than 70 countries. This transaction will create a company with pro forma combined 2010 revenues of $6.26 billion and pro forma combined 2010 Adjusted EBITDA of $1.27 billion before synergies and $1.57 billion after expected synergies.
  • 12. Power of the Combined Company  A services platform based on a world class set of assets  Multi-conduit, long-haul terrestrial; extensive submarine fiber networks  Metro networks with dense fiber connectivity  Data centers and colocation facilities on three continents  Content delivery technology and intellectual property rights
  • 14. CLOUD COMPUTING: WHERE IS YOUR OPPORTUNITY IN THE VALUE CHAIN
  • 15. Our Point of View on Cloud Services The Cloud is more than just computing. It is a new way of thinking about consuming and delivering networked technology. 15 Senior Analyst Frost & Sullivan © 2011 – Global Crossing
  • 16. Our Point of View on Cloud Services The Cloud is more than just computing. It is a new way of thinking about consuming and delivering networked technology. 16 Senior Analyst Frost & Sullivan © 2011 – Global Crossing
  • 17. Our Point of View on Cloud Services The Cloud is more than just computing. It is a new way of thinking about consuming and delivering networked technology. In the Cloud:  Services that can be consumed remotely over the network  Dynamic growth and scaling without operational impact  Highly available and resilient services  A New Consumption Model  Automated service activation  from port-based or circuit-based to per-seat or usage model Give the user the control, without the hassle. Move the applications from the LAN to the WAN A Global IP network is the key to enabling cloud to be used in a consistent, predictable, and reliable way 17 Senior Analyst Frost & Sullivan © 2011 – Global Crossing
  • 18. Market Opportunity 18 Total Market Opportunity is $46B in 2008 growing to $150B in 2013, a 5 year CAGR of 26.5% Why The Cloud Is Inevitable Gartner View of Areas of Cloud Computing Security Performance Availability Integration Customization Interworking Top CIO Concerns With Cloud Computing
  • 19. “Communications” as a Service Audio and video SIP collaboration with presence, IM, and web communications are combined by customers to create a targeted experience “Infrastructure” as a Service Flexible computing and storage capacity with metered usage “Platform” as a Service Platform for application development , hosting and virtual computing “Security” as a Service Network based security protection, detection, and filtering “Software” as a Service Hosted applications with network service level agreements (SLAs) Global Crossing’s Cloud Services are Anchored In Our Global IP Network 19 -Global Crossing Proprietary– Not for Further Circulation without Company Permission See Global Crossing’s view @ http://blogs.globalcrossing.com/?q=content/thrill-caas
  • 20. Communication as a Service 20 -Global Crossing Proprietary– Not for Further Circulation without Company Permission • SIP-based Audio Conferencing • MPLS connection with Quality of Service (QoS) • Customer facing API for integration with enterprise applications (using Global Crossing Connect) • Smart Phone Apps for roaming users • Per shared seat bundled pricing • uCommand® seat-based utilization reporting CaaS is a High Quality Audio Collaboration application offering high touch enterprise features in a cloud-based, as-a-service model. These includes:
  • 21. CaaS is Unified Collaboration • The Audio bridge is a shared resource in the cloud. It calls you in stead of you calling into the bridge • Control is at your hands on your desktop or smartphone • Integration with your calendar and contacts • At a per seat price, not metered
  • 22. “The sophistication and targeted nature of attacks are becoming too much for small security staffs to handle.” Forrester Research, Inc.: “Market Overview: Managed Security Services” by Khalid Kark, March 2010 © 2010 – Global Crossing 22
  • 23. Security: A Challenging Environment Increased use of wireless networks Remote employee access of critical information Social networking sites gaining widespread adoption Business processes and applications in the cloud Increasing demands for compliance to government standards
  • 24. Percentage of Organisations infected by a virus or malicious software . The Threat Landscape 21% in 2008 62% in 2010 Percentage of Organisations who detected a significant attempt to break into their network. 31% in 2008 61% in 2010 Percentage of Organisations who detected an actual penetration by an unauthorised outsider into their network. 31% in 2008 61% in 2010 Source: “informationSecurity BreachesSurvey 2010” – by Price WaterhouseCoopersand commissioned by Infosecurity Europe, 28 April 2010
  • 25. The Frequency of a Breach Large Organisations: • 2008: 72% reported a breach • 2010: 92% reported a breach • 2008: Average number of breaches was 15 • 2010: Average number was 45 Small Organisations: • 2008: 45% reported a breach • 2010: 83% reported a breach • 2008: Average number of occurrences was 6 • 2010: Up to 14 occurrences on average Source: “informationSecurity BreachesSurvey 2010” – by Price WaterhouseCoopersand commissioned by Infosecurity Europe, 28 April 2010
  • 26. Damage to Reputation Customer Complaints 2008 - Cost of a Breach • The cost of a security breach for a large organisation ranged from £90,000 – £170,000. • For a small organisation, the cost ranged from £10,000 to £20,000. In 2010 – Significant Increase • A security breach for a large organisation ranged from £280,000 – £690,000! • For a small organisation, the cost ranged from £27,500 to £55,000! Source: “informationSecurity BreachesSurvey 2010” – by Price WaterhouseCoopersand commissioned by Infosecurity Europe, 28 April 2010 A Security Breach Can Cost a Company …
  • 27. Global Crossing Security Solutions – a Trusted MSSP • Correlation • Aggregation • Reporting and Analysis • Security Analysts & Engineers • Personal response to alerts • 24x7x365 in Phoenix, Arizona, USA • Penetration Testing • Vulnerability Assessment • Security Policy Review & Creation • Security Audits • Incident Response • Firewall • Intrusion Prevention • Web Content Filtering • Antivirus/Anti-spam Security Appliance Global Crossing Security Consulting Security Information Event Management (SIEM) Security Operations Center (SOC)
  • 28. NET NEUTRALITY IN THE US AND EUROPE: THE END OF THE “ALL YOU CAN EAT” MODEL?
  • 29. Net Neutrality – what is it? Net Neutrality … is a principle that advocates no restrictions by Internet service providers or governments on consumers' access to networks that participate in the internet. Specifically, network neutrality would prevent restrictions on content, sites, platforms, types of equipment that may be attached, and modes of communication
  • 30. Net Neutrality wasn’t that a US thing?  Net Neutrality used to be a US topic. It has now come to Europe.  New FCC Rules in US on Net Neutrality will go into effect on November 20.  The Netherlands and Belgium are preparing legislation.  The European Commission is preparing itself for a debate and decision.
  • 31. Market Dynamics  Video creating large investment needs both in fixed and mobile networks  OTT (Over-The-Top) providers competing with access providers portfolios  Mobile operators losing SMS revenue to free and low cost IP based solutions like WhatsApp, Ping etc  Fixed internet access subscription fees still the dominant business model for internet access
  • 32. Studies are being done on future model for the Internet
  • 33. Internet Eco system by A.T. Kearney Study commissionedby: Deutsche Telecom, France Telecom, Telecom Italia and Telefonica
  • 34. Conclusions from A.T. Kearney report, but…. Telco investors are seeing lower returns than investors in other players in the internet value chain. True? What about the global internet backbones? How many “other players” are successful? Telcos face ballooning capex (“this capex is unsustainable”) Is capex really growing? OSPs are not contributing to the costs of traffic In a two-sided market, both sides pay. …but who pays the bill? Ultimately the end-user….. Traffic charges are necessary because otherwise OSPs have no incentive to constrain traffic costs. …unless the end-user decides to avoid the service. OSPs can easily afford increased charges. … what about the smaller ones? Increasing retail prices for Internet access will be challenging. … charge heavy usage? It is practical to implement traffic charges to OSPs. …or to customers? Enhanced quality services can be introduced without degrading the basic internet . ..but how to ensure equal access and consumer choice?
  • 35. Changes are happening  Mobile operators start to move away from flat fee internet models  Fixed carriers as well but still very careful  OSP’s might starts deals with access providers  Some start charging or prohibiting applications  THERE WILL BE CHANGE
  • 36. What will the future bring? – As the A.T. Kearney study states we indeed need a “Viable Model or the future Internet” – There will be lengthy debates on what that model will look like however – Will consumers act with their feet? Or do we need neutrality legislation?
  • 37. BALANCING COST AND QUALITY: BUYING IP TRANSIT, EXTEND PEERING
  • 39. IP Transit versus Peering Relations  Transit is a simple service from the customer perspective. All one needs to do is pay for the Internet Transit service and all traffic sent to the provider is delivered to the Internet and vice versa.  Peering is a limited routing table only exchanging customer routes  Supplier / customer relation versus Peers with no real transactional behaviour rules  Contract covered by SLAs, with peering this is often omitted  Transit is a metered service with benefits based on volume, vs peering with relatively fixed costs  Transit is a commodity with multiple suppliers to choose from. A peer can be a monopoly
  • 40. Simplified Internet Model 40 Eyeballs Tier 1 Tier 2 Access Content Content Content Content Content ContentContent Content GX Tier 1 Tier 2 Access Tier 2 Access Tier 2 Access Tier 2 Access Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Eyeballs Transit providers play aggregator role
  • 41. Economical model for peering? Source; Dr Peering
  • 42. Economical model for peering? • Transit prices continue to decline Why are we in this Business???
  • 43. Economical model for peering? • Transit prices continue to decline • But traffic continues to grow
  • 44. Economical model for peering? • Prices continue to decline • But traffic continues to grow • What does this do to the Transit vs peering economical model Source; Dr Peering
  • 45. What are the costs of peering • IX port
  • 46. What are the costs of peering • IX port • Colo • Capacity from your location to the IX • The more traffic colo becomes less important • Backhaul costs remain a large chunk of the costs • Backhaul (100G) needs to become affordable € - € 0,50 € 1,00 € 1,50 € 2,00 € 2,50 1GE 10GE 100GE Peering Costs/Mb IX port Capacity Colo Equipment, Personnel costs not taken into account
  • 47. Why And When Would You Peer  “Peering is a Local Optimization“, according to Bill Woodcock (research director of Packet Clearing House). Where local can be City, Country, Continent  Diversity and Redundancy in combination with Transit  Quality; more routing control, improved latency  Less dependency on your transit providers  Relationship building; Peering is often a strong community. This are also used to keep being informed on market dynamics  Historical reasons/peering culture
  • 48. What Shapes a Peering Culture? Peering Culture Traffic Supply from content providers and CDNs Traffic Demand (market size – population combined with broadband penetration ) Internet Exchanges? Facilities (Carrier-neutral Data Centres)? Presence of international networks (tier1 networks, content) Dominant access network that controls the majority of eyeballs? Regulation?
  • 49. Peering Challenges  It requires more IP routing expertise than simply buying a few transit pipes.  Peering can require more negotiation skills and can be less straightforward than just ordering an upgrade on transit. Personal relations play a big role  Problem resolution might be slower than with transit, which is coupled to an SLA  It requires more staff than just transit • You need to be involved in the peering community • You need to negotiate with multiple peers. Typically you have more peers than transit providers • Problem resolution is on both sides  Risks of de-peering, upgrade discussions, traffic ratio’s. With buying transit you move these discussions up stream
  • 50. To Peer or not It really depends on the situation
  • 51. Wanna know more? Ask us! Yuliya Boleslaw Kraus (boleslaw.kraus@globalcrossing.com) Jos Bart Nivaldo