What is Peering?
What is Peering?
Peering is a process that allows two networks to connect and exchange traffic directly without needing to pay a third party to carry traffic across the Internet. When two networks establish a peering relationship, it allows both networks to freely communicate by sharing common routes.
By peering, a network can:
- reduce its dependency on costly upstream transit providers
- reduce its latency
- reduce its operational costs
- improve its perfomance
While there are several differences between peering and IP transit, a key difference is that no money is exchanged between networks that agree to peer with one another. Whilst the act of peering is free, the costs associated with peering is due to equipment, tools, staff, and power to name a few.