Differences between IP transit and internet exchange peering
In this article we will explain the difference between IP transit and peering. Discover two different strategies for your global connectivity requirements and how IX peering and IP transit connect end-users to the global internet.
What is IX peering (remote peering)?
Internet Exchange (IX) peering happens when two parties open and connect to each others’ networks. Usually this happens on a cost-free basis. Both parties have determined it is in their mutual interest to interconnect both networks.
By peering with each other’s networks, the internet end-users and their traffic can reach the final destination network faster and with less delay. Since IX peering is often free of charge, peering can help to reduce the global cost of internet connectivity around the world. Often internet exchanges are located in carrier-neutral data centers.
What is IP transit?
IP transit is often referred to as the exact opposite of IX peering. Because in IP transit a significant difference is that there is a paid component to it.
One party, for example an internet service provider (ISP), pays a fee based on the amount of traffic it wants to receive or send to the other party’s global network of destinations. By paying this fee, the IP transit customer is able to connect to all regions and parties of the internet, via the best and fastest routes without delay.
Paid IP transit is the right solution when one party cannot sufficiently access certain regions or other providers via only free IX peering.
What are important differences between IP transit and peering?
IP transit is a paid service to reach multiple ISPs and networks, whereas IX peering is a free service between two parties only.
Another difference is that IP transit customers connect to a transit providers’ network point of presence (PoP) directly in a data center. While IX peering customers connect to each other directly in a data center, physically on an internet exchange or via remote peering connections.
There are also only two distinct types of IX peering providers: Public (multiple connections on an internet exchange) or private (only a single dedicated connection between two networks). However, there are 3 distinct types of IP transit providers: Tier 1 (global/worldwide), Tier 2 (regional/continental) and Tier 3 (local only).
Depending on the connectivity requirements of their end-users, most IP transit customers prefer a combination of one or two unique Tier 1 providers and a mix of Tier 2 and 3 providers.
Which is suitable for your business: IP transit or peering?
The question whether IP transit or IX peering is best for your organization depends on your end user’s location, destination, and traffic volumes. You should also consider your organization’s global connectivity budget.
If you are located near a datacenter of a leading public internet exchange point, then you will be able to connect to more networks and ISPs via direct IX peering. Most organizations will use a combination of IP transit and IX peering partners. Simply because not all networks and destinations can be reached efficiently via solely peering on the internet exchange.
Experiences peering and connectivity managers are professionals that can help organizations source the best combination between free IX peering and paid IP transit providers.
This ensures that their organization and end-users always have the best connections to all content and service providers on the global internet. But also ensures that there is never a single point of failure in their network, should one of the transit or peering connections ever suffer from service interruptions.
The solution that works best for you
The best IX peering and IP transit solution is cooperating with a global provider that offers both IP transit services from multiple Tier 1, 2 and 3 providers. Plus, IX peering services via physical or remote connections. Contact me for more information on how I can help you with comparison and selection of providers in your region.