Economic Feasibility Study of Seamless Multihoming WAN Solution - - PDF document

Economic Feasibility Study of Seamless Multihoming WAN Solution

Antti Mäkelä, Henna Warma, Aurelien Decros, Kalevi Kilkki & Jukka Manner FUTURE INTERENT PROGRAMME OF FINLAND ICT SHOK

NGI 2011 June 28, 2011

Outline

• Background and motivation
• RAIIC concept and virtual service provider
• Feasibility of VSP business
• Conclusions and future work

2

Motivation: High reliability is costly

• Suppose organization needs intra-

site connectivity with high reliability

• Some options:

– Dedicated connections with redundancy guarantees and Service Level Agreements

• Expensive

– Multihoming via several providers

• Maintaining own AS number,

routing convergence

– Multihoming over the Internet using VPNs

• Mgmt & Configuration issues

è Usually very expensive in either monetary or workload terms

Headquarters Branch Office #2 Branch Office #1 MPLS service provider

• r Internet

Cost analysis of SLAs

4

• Example: Finnish medium

sized company

• Three basic price levels seem

to emerge

– Consumer-grade – Unguaranteed business-grade – Guaranteed business-grade

• Price gap exists between guaranteed and unguaranteed

connectivity

– Difference may be orders of magnitude – Market situation has remained stable for a considerable period – Global phenomenon

1 Gbps 1500 € à 10 Mbps 3000 €

High reliability without high costs - is it possible?

• Offer a virtual high-reliability bit-pipe over several

unreliable connections

– Standard consumer Internet connection works ”most of the time” – Example: three connections with 2 % downtime each

• 0,0008 % downtime = 99,9992 % uptime
• Redundant Array of Inexpensive Internet Connections (RAIIC)

managed by a virtual service provider

• Proposed concept implementation is based on Mobile IP

with route optimization (Mäkelä, A., 2010)

– Could be implemented with other protocols, such as HIP – Simple and low cost infrastructure

5

Mäkelä, A. (2010). ”Concept for providing guaranteed service level

• ver an array of unguaranteed commodity connections”, ACM SAC 2010

Mobile IP based RAIIC

6

Network A Network B

Virtual Operator Backend

Virtual Operator Cloud

Network Operator X Network Operator Y

Network operator peering point

Network Operator Z

Mobile Router A Mobile Router B

Mobile IPv 4 Home Agent AAA and

• ther Services

Network C

Mobile Router C Node A Node B Node C

How feasible is the concept business-wise?

7

• A new market role

– Virtual Service Provider (VSP)

• The role of VSP

can be taken by

– one of the existing stakeholders – a new market player

VSP business environment

• Several providers for last mile connectivity must exist

– Variety in access technologies

• Terms of service may disallow to provide consumer-

grade connectivity to third parties

– Usage of unguaranteed business-grade connections

• ISP may proritize their own traffic

– Net neutrality legislation – Competition in the ISP market

• VSP might have difficulties to become convincing

solution

– Reference customers

8

SWOT analysis for integrators

9

SWOT analysis for hosting providers

10

SWOT analysis for business service providers

11

Conclusions and future work

• There is a need for mid-range priced intranet solutions

– RAIIC is a proposal to answer the demand

• Multiple outcomes for VSP business establishment exist

– Moderately priced option for companies – Co-operation with other market stakeholders

• Sustainability of the VSP business can be seen as a threat

– Reactions of incumbent providers – Price evolution and increasing competition

• First effort of analyzing the economic feasibility of the concept

– More detailed analysis on potential target markets – Quantitative cost analysis

12

Questions? Comments?

13