In collaboration with DevDigital and Peace Communications, 365 Data Centers has opened a carrier-neutral NashIX Internet peering exchange in Nashville, Tennessee.
As a provider of colocation facilities, 365 Data Centers currently operates 17 data centers in what Keao Caindec, its chief commercial officer, describes as “Tier-Two” markets.
In the case of Nashville, prior to the opening of this facility the closest Internet peering exchange was located in either Chicago or Atlanta. That required IT organizations in the Nashville area to have to pay for expensive network services to backhaul traffic between either one of those exchanges.
“Organizations today want to move as much content, especially video, out to the edge of the network [as possible],” says Caindec. “It’s too expensive to backhaul all that traffic.”
Rather than incur those costs, Caindec says, it has become much less expensive to cache content as close to where it is being consumed as possible. As a rapidly growing market with well-established healthcare and music industries it makes sense to set up an Internet peering exchange in Nashville, he says.
365 Data Centers claims the NashIX will speed access to the Internet by up to four times and lower the cost of interconnection by 70 percent. A 10Gbps private line from Nashville to Atlanta costs $5,000 to $10,000 per month, compared to the cost of a local 10Gbps connection within the Nashville metro that is 30 percent of that cost. In addition, 356 Data Centers is making connecting to the NashIX free for “Early Access” participants that join before September 30th.
With hosting facilities in Tier Two markets Caindec says that trend plays to the strengths of 365 Data Centers.
At the same time more servers are moving into hosting facilities located near Internet peering exchanges. Where once the cost of real estate and access to inexpensive power drove data center location decisions, proximity to Internet peering exchanges that reduce the network latency associated with accessing Web applications has become a primary reason to move servers into a hosting facility, he notes.
365 Data Centers claims that latency between Nashville and Atlanta is six to eight milliseconds, compared to typical latency within a metropolitan area of less than two milliseconds.