shaun fensom - digital exchanges
TRANSCRIPT
Digital Exchanges
Aggregation point
To overcome path dependencies
Path dependence explains how the set of decisions one faces for any given circumstance is
limited by the decisions one has made in the past, even though past circumstances may no longer be
relevant.
Positive feedback mechanisms like bandwagon and network effects are at the origin of path-dependence.
A B
C
Three path dependencies
Bandwidth aggregation for end usersClustering of digital business
Backhaul and hosting for access networks
6
Components
Space for businessesInternal connectivityInternet connectivity
Hosting spaceMutual governance
Nearest IXP
DX
Local users in DX
Local access network
Local access network
Remote IXPAnother
DX
Hosting
8
Bandwidth aggregation
Reduce cost of high quality access
Nearest IXP
DX
Local users in DX
11
• Simple rationale– 10 x bandwidth, 2 x
cost• Layer 2 (or WDM)– Allowing multiple ISPs– Shared “ownership”
of connection
Simple aggregation
• High-speed connection to IXP– Cost shared using DX
organisation– Users access via
internal network– Could use vouchers
Nearest IXP
DX
Local users in DX
Remote IXPAnother
DX
Hosting
DF
CarrierPoP
Clustering digital business
Creating a virtuous circle
14
Attractive space
High quality connectivity
Flexible hosting
Good, flexible terms
Choice of service providers
Sense of shared
ownership
Backhaul aggregation
Carrier neutral centre for new access networks
End users End users
End users
IXP
Tier 1 ISP
ISPISP
Peering
Transit Transit
Tier 1 ISP
Tier 1 ISP
Local access network
Local access network
Remote IXPAnother
DX Nearest IXP
DX
Local users in DX
Hosting
Access networkBackhaulHub
IndependentOpen accessMutual ownership
