How and Internet Exchange works in a simple explainer

How Peering Keeps Internet Traffic Local

How Peering Keeps Internet Traffic Local

An eight-scene visual walkthrough of BGP peering and Internet Exchange points

Scene 1 of 8
Two separate networks
Network A ASN 64501 Core router Customers Servers Paid transit path Transit providers Network B ASN 64502 Core router Content Cache Many hops between A and B
Without peering, traffic may take the long way around.
When two networks do not connect directly, traffic usually follows whatever upstream route BGP gives it.
Scene 2 of 8
Traffic takes the long path
Net A router Transit hop 1 Transit hop 2 Transit hop 3 Net B router hop 1 hop 2 hop 3 hop 4 paid paid paid Each transit hop may add latency and cost
More hops. More latency. More transit usage.
That path may work, but it can add extra hops, extra latency, and more traffic on paid transit ports.
Scene 3 of 8
Internet Exchange appears
Network A Peering router ASN 64501 Internet Exchange Neutral switch fabric Layer 2 fabric cross-connects shared peering LAN Network B Peering router ASN 64502 fiber fiber Each member connects one router to the exchange fabric
An Internet Exchange gives networks a common place to connect.
An Internet Exchange gives networks a shared place to meet. Each network brings a router, connects to the exchange fabric, and starts exchanging routes.
Scene 4 of 8
BGP session comes up
Router A ASN 64501 BGP Established Router B ASN 64502 BGP Established BGP session prefixes announced announces 203.0.113.0/24 announces 198.51.100.0/24 BGP tells each side what prefixes are reachable
BGP tells each network what prefixes are reachable.
BGP handles the routing. Each side announces the prefixes it wants the other network to reach.
Scene 5 of 8
Peering path replaces transit
old transit path (faded) Transit providers (bypassed) Network A ASN 64501 IX fabric direct path low latency Network B ASN 64502 Transit path: 4+ hops, paid per Mbps Peering path: 1 hop, settlement-free
Peering creates a shorter local path.
Once peering is in place, traffic between those networks can stay local instead of leaving through transit.
Scene 6 of 8
Route server option
Route Server IX-managed RFC 7947 Network A ASN 64501 Network B ASN 64502 Network C ASN 64503 Network D ASN 64504 Without RS: 4 networks need 6 bilateral sessions With RS: 4 sessions, routes distributed automatically
Route servers simplify many peering sessions.
A route server lets one network exchange routes with many other members without building a separate BGP session to every peer.
Scene 7 of 8
Customer impact
Network A Gamer Business user Video stream IX local path Network B Game servers SaaS / cloud CDN cache lower latency · less transit · better local traffic flow
Lower latency. Less transit. Better local traffic flow.
For customers, this can show up as lower latency to local content, smoother paths to nearby services, and less congestion on upstream links.
Scene 8 of 8
Full exchange view
Internet Exchange Neutral Layer 2 fabric Route server · cross-connects settlement-free peering ISP / Carrier transit + peering Regional ISP eyeball network CDN / Cloud content network Enterprise direct connect Hyperscaler public cloud Peering keeps local traffic local
Peering keeps local traffic local.
Peering does not replace every Internet path. It gives networks a better path when both sides agree to exchange traffic.