What Are IXPs?
An Internet exchange point (IXP) is a physical location where different IP networks meet to exchange local traffic with each other via a switch and other equipment (e.g., routers, servers). IXPs are integral part of the Internet ecosystem and provide a way for various networks (mobile, Internet, content delivery networks (CDNs) to exchange traffic locally. IXPs promote local content development and shorten the routes between local users and their desired content, resulting in an internet that feels as if it were running faster.
IXPs are a valuable asset for other “peers” -- ccTLD operators, and educational or governmental networks – that also benefit from peering locally.
Getting Started
There are a number of steps needed to create a functioning and sustainable IXP: Determining the need for an IXP, building a community to peer at the IXP and sustain it, interconnection, and management and maintenance of the IXP.
Creating an IXP may seem like a technical challenge, but the most critical and challenging part is bringing together the peers, experts to agree to develop an IXP and build network of trust. Face-to-face introductions and collaboration are critical to building a healthy IXP community. Beyond the technical work of designing and implementing the IXP, it is crucial to create a funding model, governance framework, and best practice agreement with all stakeholders.
IXP Models
IXPs generally fall into five categories: non-profit organization, an association of ISPs that manage the IXP, operator-neutral for-profit company, university or government agency, or an informal association of networks. The exception is the United States where the for-profit commercial model is dominant.
Selecting a model is important and depends on a case-by-case assessment of your local environment and an analysis of the regulatory rules/requirements of your country as well as the interests and capacities of the groups involved in peering at the IXP.
Physical Infrastructure
IXPs can be located in a number of different locations, but the most important factors (that we have seen) is the importance of neutrality. Everyone must agree on the location. Once determined, it is crucial to then identify the IXP team to run and manage the IXP, appropriate power sources (and back-up power sources), cooling, and security.
IXPs can be as simple and inexpensive as a simple switch (and, hopefully a back-up switch), racks and routers.
Business Case
IXPs provide a competitive alternative to routing domestically destined traffic abroad. IXP viability can be calculated for interested ISPs by comparing the cost of IP transit to the cost of domestic peering.