In today’s Internet, two forms of interconnection exists between networks: transit and peering. Transit and peering are options that determine how traffic streams the Internet. Oftentimes “IP Transit” and “Peering” are considered to be commutable; however it’s important to understand the similarities and differences between the two services as both can provide benefits when expanding your network.
What Is IP Transit?
IP transit is simply a connection to the internet or the service of allowing traffic to “transit” a network. IP Transit on its most basic level is a paid service that allows a network to connect to other networks on the internet through an upstream provider.
What Is Peering?
Peering is a process where two Internet networks connect and exchange traffic. They can each directly hand off traffic between customers, without having to pay a third party to carry the traffic across the Internet for them. When it comes to peering, there are two options; paid and settlement-free. Paid peering is nearly identical to settlement-free peering except paid peering has a monthly recurring charge to access each peer’s downstream network.
When does this matter?
It’s important for you to identify which internet service option works best for you and your network needs. Xfernet offers IP Transit services at both a bandwidth commitment level as well as a unique pay for usage / zero commit / no terms model providing a flexible and scalable solution.