[AusNOG] Netflix, AWS and Softlayer vs. Australia

[Mark Newton]

On 2 Dec 2014, at 4:42 pm, Oz Nog <oz.nog at yandex.com> wrote:

>  So, back to that kid in his parent's basements with a couple of hundred dollars to his name. He and his 1Gbps server are going to cost you $20 000 in domestic backhaul costs (Queue mad laughter from NBNco laughing all the way to the bank). How many kids like that can your ISP business take?  Where's that money going to come from? Your fat cat ISP margins?

Why would I or anyone else on my ISP be even remotely interested in what's on his
server?  I reckon he'd cost ISPs virtually nothing, and his 1Gbps of capacity might
carry a few Mbps of actual utilization. On a good day.


ISPs have already formulated the cost of backhaul into their quotas:  You get n Gbytes 
for x dollars. The quota will influence your usage and/or expenditure a lot more than
Netflix's back catalog will.  And if you're not on an ISP with quotas, that just means
your supplier will be turning their DPI screws just a little bit harder to control costs
incurred in servicing your viewing habits.

Your question, "Where's that money going to come from?" has a very simple answer: "The
same place all the other money comes from: End users."

  - mark