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Intracolocation Networking: Transform Your Business by Peering

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February 24, 2015
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Reduce latency. Improve availability.  Lower WAN costs.  Tap into cloud, customer and partner possibilities. Transform business. What can possibly yield all of these benefits? How about colocation networking — or more specifically “intracolocation networking”?

Intracolocation networking is a matter of peering.  Many colocation facilities started out as Internet exchange points, where networks would interconnect to exchange traffic — a process known as peering. It was mutually beneficial for networks to make these interconnections because it reduced transit costs. Internet service providers (ISPs) quickly realized that these interconnections also increased redundancy by reducing dependence on one or more of the providers, expanded their capacity for more traffic and improved overall network performance.

The financial services providers and trading exchanges were among the first to pick up on these benefits, realizing that low latency and the fairly inexpensive connections could deliver the split-second response times required by their businesses. By adding the benefits of peering to the compute and storage resources inherent in colocation, companies across numerous industries also started seeing a range of possibilities for transforming their businesses through the three basic types of peering: ecosystem peering, network peering and cloud and hosting direct connect.

Ecosystem Peering

With ecosystem peering, organizations within a vertical industry connect to each other via fiber cross-connect or a high-speed switch.  Among the major benefits are reduced latency, network proximity and high bandwidth, all of which make it easier and quicker to exchange large files. For example, an “ecosystem” within the healthcare industry might develop because peering between the networks that support a group of hospitals, medical imaging specialists and medical specialists enables them all to exchange information in a fraction of the time it would normally take.

Network Peering

Network peering connects network and content providers, as well as enterprises. For example, companies might connect to multiple network providers for enhanced performance, greater resiliency and/or cost savings. Previously, these organizations were likely to have been concerned they didn’t have the expertise to do cross-connects. However, peering is now facilitated and, in many cases, automated by colocation providers. This makes it easier for organizations to leverage the same interconnect benefits as network and content providers do.

Cloud and Hosting Direct Connect

With cloud and hosting direct connect, companies can connect to a physical presence in a data center, directly accessing enterprise-connected routers, or colocated compute and storage assets. The result is a higher speed connection directly to a provider, which reduces latency and costs. The connection also helps keep sensitive traffic off the public Internet.

In addition, these kinds of connections enable the creation of colocation asset-to-cloud or cloud-to-cloud applications that would not have been possible previously because of Internet connection delays. For example, an organization can directly connect its colocated assets to a cloud provider for a low-latency, high-speed hybrid connection. The connection could be between a public cloud and a private cloud located in the data center. Or, it could be between a public cloud and individual compute or storage assets. Expand peering to include multiple cloud providers, and now companies have more opportunities for building cloud-to-cloud applications.

Peer to New Opportunities

So what does it all mean?  Basically, peering has evolved from a traffic exchange to a driver for business transformation.  The opportunities and the benefits keep growing. Are you ready to make the connection?

To learn more, take advantage of Peak 10’s free colocation resources below. Or contact us now to speak to a Peak 10 solution engineer about Peak 10 data center and network services, and cloud services.

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About Peak 10

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Board Member, Peak 10 + ViaWest