Tactic 10. Bundling

Several forms of bundling have proven successful in the IXP sector.

IXPs with multiple exchanges in different areas can leverage a well-populated IXP to build critical mass in another location. Customer relationships can be leveraged, extensions to existing agreements are easier than new agreements with a new vendor, and operations procedures can be made consistent across all deployments with the same vendor.

Another example of this tactic was seen when the MFN-owned PAIX bundled a free PAIX port and rack space with large fiber deals.

In the UK the LINX offers connectivity to its redundant switching port as part of the sale.

And finally, both CoreSite and NOTA launched their peering services without fee when the customer purchased colocation space.

All of these methods to build the initial peering population are common ways to get the first peers into an IXP.

Value of the IXP = f(p, r, v, m) - c

p: The population

r: The routes available

v: The volume of traffic exchanged

m: The market perception of the IXP

c: The cost of participatioon at the IXP