IX Peering is a cost-effective solution for internet service providers to exchange data seamlessly. It forms a crucial foundation for the way data is overseen, transferred, and processed among internet service providers. In this blog post, we offer an introduction to IX peering, outline its primary advantages, and differentiate between its two primary forms: public and private peering.

IX peering is leveraged by ISPs, carriers, content providers, enterprises, and other internet infrastructure companies to enhance their network performance and efficiency. ISPs, carriers, content providers, enterprises, and various other entities within the internet infrastructure sector harness IX peering to amplify the performance and effectiveness of their networks. Over the last twenty years, there has been a major expansion in network interconnections, which includes new data centre facilities being developed to manage demand. Some of which have attracted massive numbers of networks, in no small part due to the thriving Internet exchange points that operate within them.

What is IX peering?

Internet Exchange (IX) Peering is the method through which two internet networks establish a connection, enabling users to directly exchange data. This process removes the need to enlist a third party to route their traffic over the Internet, resulting in a direct user-to-user connection. This distinguishes peering from the more common practice of transit, where an end user or network operator pays another operator to carry their traffic.
Internet Service Providers (ISPs) and other network operators form peering relationships to reduce their reliance on costly transit providers and enhance service quality for their customers. Through peering agreements with other networks, they can directly swap traffic with their peers, diminishing latency and enhancing network performance.
Peering can take place in various forms, such as physical peering, where two networks connect their routers at a common location (e.g. in a colocation facility via a cross connect), or virtual peering, where two networks connect their routers over the internet. IX Peering typically takes place at Internet Exchange Points (IXPs), where multiple networks interconnect to exchange traffic.

There are two main types of peering – public and private:

Public peering involves linking up via a communal network known as an Internet Exchange Point (IX or IXP). By connecting through an Internet Exchange (such as INEX, the Vienna Internet eXchange, or LINX), you can establish connections with numerous other peers using one or more physical links, thereby optimising the cost per peer when transmitting data to a variety of networks. Internet Exchanges often impose port and/or membership fees to sustain their infrastructure.
Private peering, on the other hand, occurs within a colocation facility where two entities interconnect via a cross connect, as opposed to utilising an exchange point switch. This approach becomes valuable when networks need to exchange a substantial volume of data that cannot be accommodated on a shared connection at an exchange point. The Digital Realty Internet Exchange, for instance, serves as a neutral, privately-owned facility for such purposes.

What are the benefits of IX peering?

IXs provide a rich ecosystem of platforms and services. Facilitating mutual peering to enrich IP architectures and provide lower latencies for eyeball traffic.

By peering, organisations aim to generate more revenue from whatever service they are providing. This can generate more revenue due to the following benefits:

Improved network performance
Greater reach
Scalability
Operational simplicity
Leveraging a community
Reduced costs

How does an internet exchange point work?

Internet exchange points facilitate the exchange of internet traffic between different networks and Internet Service Providers (ISPs). These physical locations act as central hubs where internet infrastructure companies such as CDNs and ISPs interconnect their networks, enabling efficient and cost-effective data exchange. In simple terms, instead of routing traffic through multiple internet service providers or international links, IXPs allow ISPs to exchange traffic directly, reducing latency and improving network performance. By connecting to an IXP, ISPs gain access to a diverse range of networks, promoting optimal routing and enhancing the overall internet experience for end-users. Additionally, IXPs play a crucial role in fostering network resilience, enhancing local and regional internet connectivity, and enabling the growth of digital ecosystems by facilitating the exchange of large volumes of data at high-speeds.

To hear more about how IX Peering can improve your network performance, why not contact us or download the Data Exchange solution brief.

AMS-IX Independent Internet Exchange in Amsterdam