[AusNOG] Netflix, AWS and Softlayer vs. Australia

[Oz Nog]

02.12.2014, 13:04, "Joshua D'Alton" <joshua at railgun.com.au>:
> There is a couple reports I can't seem to find in my bookmarks, but they detail that backhaul costs have been the majority for at least the last decade (iirc one from iiNet back in 2003 or so). And certainly when compared with transit "internet" costs, something like a factor of 5 if I remember.
      I'm sure you are right. What has changed, and I do believe this makes a difference, is that domestic content origination has become affordable for all traffic types including video streaming. Earlier there was back-pressure from either high local costs or high latencies when hosting from overseas. Now that resistance has disappeared leaving the flood gates wide open.

> Netflix coming probably wouldn't affect it much, after all the people using 10-20% do already have access to youtube and other high bandwidth sites.
      I think you are underestimating the potential levels of traffic that Netflix will likely bring. Latest reports from the US indicate that Netflix accounts for about 30% of all traffic, which is huge. Since it will be all new and additional traffic in Australia, that 30% of all traffic turns into 50% more traffic than the current level of traffic in Australia.

      Remember, in the US they also have capped broadband. I'm sure you've all read the articles where US broadband users complain that they can't watch Netflix at full quality as often as they like even with caps of hundreds of gigabytes.


> And if they ever faced massive congestion they'll just shape them, as you've experienced yourself.
      Ain't that the truth. Such a sad future, a spanking new (partial) fiber NBN throttled to whatever backhaul costs the ISPs can bear. Don't quite call that progress.

> Or offer some cheap all-you-can-eat netflix package as ISPs around the world have handled it (actually with more than just netflix, in EU Usenet caused similar issues 15 years ago, then ISP-offered TV streaming 10 years ago, again to combat lack of multicast otherwise).
      I don't see how this would help the ISPs since they'd still have to eat the cost of domestic backhaul for any included services.

> Likewise with SL, they won't actually allow a bunch of kids paying $200/mo to push Gbps of traffic even over peering. You'll probably find the 20TB currently being offered in Melbourne is just there so it looks seemless with their other locations (ignoring the +$50 for it), if it gets abused it will be back to 2TB for +$50, or 20TB for +500 which they've done before when people abused them.
      This is actually news to me. Do you have any sources I can read? I've had no problems so far in Singapore which also includes the 20TB per server as a baseline and that's not a low cost market either. Been with SL in Singapore since they opened.

>

Cheers,

Baz