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Christian Koch, Megaport 

Evolution At The Edge.
Interconnection, Cloud Services, Oh my!
Why I’m Here
2
Over the past 20 years, networks have generally
interconnected the same way, however, there are
some interesting changes that are occurring that are
fundamentally changing how we buy, manage, and
operate our networks. 

In the following slides, I’ll present my observations,
theories, and predictions. I am not here to sell you
anything, market any products or tell you what to do
or what not to do. I want to provide a neutral view of
what’s happening with networking and
interconnection because it is something I am
passionate and care about.
3
Evolution definition
evolutionˌiːvəәˈluːʃ(əә)n,ˈɛv-/
Noun
The process by which, over time, something undergoes
a positive change, developing beneficial traits that are
passed on as a foundation for future generations.
Some Notable Bits of History
1992
Worldcom MAE-East 
1994
MAE-West
AADS
LINX
AMS-IX

2006
Amazon Web Services, EC2



2011
AWS Releases Direct Connect
SDN/OpenFlow



2010
France-IX
OpenStack

2001
Euro-IX
LyonIX
JPNAP
1998
Equinix
MAE-East ATM
2012
Netflix OpenConnect
2013
Open-IX Association

2030
Whats Next?
2020
Coming Soon
4
1995
HKIX
2014
Equinix Cloud Exchange 
Microsoft Azure ExpressRoute
Google Cloud Interconnect
2008
Microsoft Azure
What The Traditional Edge Looks Like
5
Peers & Transit Providers
Datacenter 
Network POP or 
Edge Site
Observations
6
Bilateral Peering, Multilateral Peering (Route Servers), and IP Transit
have remained the most popular methods of interconnection to
deliver IP traffic. 

Embedded Caching is still only able to be achieved by a small
amount of networks. 

Other than IP Transit pricing consistently falling, the economics
around bandwidth and network services remain mostly unchanged.

Cloud is very real and becoming a major driver in evolution of the
network through SDN, NFV, economics, and enterprise
requirements.
Cloud & Internet Exchange Points 
7
They are a Platform from day 1 that provides
unparalleled functionality and connectivity, and
can serve as true foundation to build services
and features on top of.


Low Barrier to Entry since networks are
already connected to the “platform” they are
more likely and ready to consume other
services.
Through distributed deployment, they increase
availability and opportunity by building
infrastructure that extends into many dense data
centers. 



The Top 3 Cloud Providers were already
running massive networks prior to becoming the
top cloud providers, and it is common to find
this infrastructure distributed throughout the
same data centers as the IXP’s.
Internet Exchanges sit in one of the most optimal positions to unlock
value as the requirements of today's networks evolve.
The Network Edge of Today and Tomorrow
8
Peers & Transit Providers
Datacenter 
Network POP or 
Edge Site
Cloud Service Providers
Embedded Caching
9
Evolution definition
60% of today’s IT spend is on software
systems, not hardware platforms
Design, Manage, Operate 
10
SDN is leveraged to provide off-device software
based controllers, and automation. 

The DevOps movement is expanding to
network roles. Network Operators will need to
learn how to code, and peering coordinators
need to be involved in more business activity.
Cloud Services are being created to provide
frictionless management tasks, such as
monitoring, analytics, and notification services

Efficiency is becoming more important, and
software is a major component to reducing
costs, and increasing operational efficiency
Cloud Infrastructure and Software are Fundamentally changing how
we build and operate networks.
Takeaways
11
The Interconnection landscape is changing. 

Econmonics are shifting. 

Software is a key design component of the
network.

Roles and Responsiblities are evolving, we must
learn new skills.
12
Evolution definition
Thank You.
Contact Me
ck@megaport.com | @xt1an

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Evolution At The Edge

  • 1. Christian Koch, Megaport Evolution At The Edge. Interconnection, Cloud Services, Oh my!
  • 2. Why I’m Here 2 Over the past 20 years, networks have generally interconnected the same way, however, there are some interesting changes that are occurring that are fundamentally changing how we buy, manage, and operate our networks. In the following slides, I’ll present my observations, theories, and predictions. I am not here to sell you anything, market any products or tell you what to do or what not to do. I want to provide a neutral view of what’s happening with networking and interconnection because it is something I am passionate and care about.
  • 3. 3 Evolution definition evolutionˌiːvəәˈluːʃ(əә)n,ˈɛv-/ Noun The process by which, over time, something undergoes a positive change, developing beneficial traits that are passed on as a foundation for future generations.
  • 4. Some Notable Bits of History 1992 Worldcom MAE-East 1994 MAE-West AADS LINX AMS-IX 2006 Amazon Web Services, EC2 2011 AWS Releases Direct Connect SDN/OpenFlow 2010 France-IX OpenStack 2001 Euro-IX LyonIX JPNAP 1998 Equinix MAE-East ATM 2012 Netflix OpenConnect 2013 Open-IX Association 2030 Whats Next? 2020 Coming Soon 4 1995 HKIX 2014 Equinix Cloud Exchange Microsoft Azure ExpressRoute Google Cloud Interconnect 2008 Microsoft Azure
  • 5. What The Traditional Edge Looks Like 5 Peers & Transit Providers Datacenter Network POP or Edge Site
  • 6. Observations 6 Bilateral Peering, Multilateral Peering (Route Servers), and IP Transit have remained the most popular methods of interconnection to deliver IP traffic. Embedded Caching is still only able to be achieved by a small amount of networks. Other than IP Transit pricing consistently falling, the economics around bandwidth and network services remain mostly unchanged. Cloud is very real and becoming a major driver in evolution of the network through SDN, NFV, economics, and enterprise requirements.
  • 7. Cloud & Internet Exchange Points 7 They are a Platform from day 1 that provides unparalleled functionality and connectivity, and can serve as true foundation to build services and features on top of. Low Barrier to Entry since networks are already connected to the “platform” they are more likely and ready to consume other services. Through distributed deployment, they increase availability and opportunity by building infrastructure that extends into many dense data centers. The Top 3 Cloud Providers were already running massive networks prior to becoming the top cloud providers, and it is common to find this infrastructure distributed throughout the same data centers as the IXP’s. Internet Exchanges sit in one of the most optimal positions to unlock value as the requirements of today's networks evolve.
  • 8. The Network Edge of Today and Tomorrow 8 Peers & Transit Providers Datacenter Network POP or Edge Site Cloud Service Providers Embedded Caching
  • 9. 9 Evolution definition 60% of today’s IT spend is on software systems, not hardware platforms
  • 10. Design, Manage, Operate 10 SDN is leveraged to provide off-device software based controllers, and automation. The DevOps movement is expanding to network roles. Network Operators will need to learn how to code, and peering coordinators need to be involved in more business activity. Cloud Services are being created to provide frictionless management tasks, such as monitoring, analytics, and notification services Efficiency is becoming more important, and software is a major component to reducing costs, and increasing operational efficiency Cloud Infrastructure and Software are Fundamentally changing how we build and operate networks.
  • 11. Takeaways 11 The Interconnection landscape is changing. Econmonics are shifting. Software is a key design component of the network. Roles and Responsiblities are evolving, we must learn new skills.
  • 12. 12 Evolution definition Thank You. Contact Me ck@megaport.com | @xt1an