What is an Internet Exchange Point (IXP)?
An Internet Exchange Point (IXP) is a tangent location where multiple networks exchange internet traffic efficiently. The networks exchanging traffic include internet infrastructure companies like internet service providers (ISPs), content delivery networks (CDNs), network operators, etc. Efficiency through IXPs is achieved by reducing latency, round-trip times (RTT), and cost. The following illustration depicts the concept of an IXP:
The third slide above shows that each network is connected to the IXP at its
Why IXPs matter?
Other than providing efficient traffic exchange, IXPs have the following important roles to play in the world of networking today:
Reliability: Although IXPs eliminate the need to traverse longer routes, they also act as redundant routes, improving the network's reliability and resilience.
Traffic localization: IXPs allow service providers to localize the traffic within a region, addressing concerns related to data privacy. Moreover, IXPs provide faster data delivery and reduced dependency on the Internet’s backbone to avoid congestion.
Collaboration: IXPs cultivate a culture of collaboration and support among peering members, improving opportunities for mutual benefit. Through IXPs, peers can send data directly to each other without using international links of transit providers.
IXPs can provide higher bandwidth to local users because of the smaller size of local traffic. In general, IXPs facilitate cost-cutting and improve networks' performance, privacy, and reliability.
Composition of IXP
IXPs can have participants ranging between a few dozen to as many as 500. IXPs typically comprise networking equipment like ethernet switches, routers, networking cables, route servers, power supplies, cooling systems, security devices like firewalls, and intrusion detection systems (IDS). However, the list can expand depending on the services an IXP can provide.
Note: The difference between a home network and an IXP is only that of scale.
Point to Ponder
Which entity is responsible for operating and managing the most neutral IXPs worldwide?
Internet Engineering Task Force (IETF)
Internet Corporation for Assigned Names and Numbers (ICANN)
Third parties or consortia
None of the above
Challenges in an IXP startup
Despite the numerous advantages an IXP offers, there are a number of challenges to overcome before an IXP can be started up. A few of them are listed below:
Market size: The value of an IXP increase with the number of participants. Regions with smaller Internet penetration may find it difficult to find participants to facilitate and support an IXP.
Establishment cost: Even if a number of participants agree to install an IXP, the cost required to establish an IXP is significant. Therefore, one challenge is bearing the cost of starting up an IXP. Other than the capital expenditure (CAPEX), there are also operational expenditures (OPEX) to bear regularly.
Technical expertise: Other than cost, IXPs require a specialized skillset to provide a variety of services to different participants. Often, the expertise is not readily available in a specific region to operate an IXP.
Collaboration and regulations: IXPs are spawned after extensive negotiations between different stakeholders, including service providers and government entities. In some cases, the collaborating participants have conflicting policies, whereas in other cases, the governments imply regulatory restrictions that hinder the establishment of IXPs.
Trust issues: IXPs allow members to use a common medium to exchange data. Competitors may find it difficult to collaborate due to trust issues, mainly because of security concerns.
Despite the hurdles to be overcome, IXPs play a vital role in meeting the increasing demand for affordable, high-bandwidth services.
