I was shocked by this news and I think a lot of people were. The AMS-IX decision to cease operations in the United States may seem like a relatively minor issue on the surface. But it is actually a significant impact on how much internet traffic travels through different networks behind the scenes. Anyone who is involved in web hosting, virtual private servers (VPS), and/or networking should be concerned about this news.
The first question that came to my mind after hearing about AMS-IX leaving the United States was 'Why are they doing this now?' Large corporations who operate in this space do not make such decisions without specific reasons.
To clarify quickly for you, here is how this translates:
• AMS-IX is discontinuing all operations for their exchange points located in the USA.
• Customers will need to switch their network traffic over to another Exchange.
• AMS-IX is going to put more focus onto Europe as well as other important global markets.
Though it seems simple, switching over network traffic, in reality, can take a lot of time and resources to accomplish.
The US exchange marketplace already has established strong players, who are Equinix IX, DE-CIX etc. Competing with these larger companies requires significant investments. If you're growing at a much lower rate than what AMS had been expecting, then they would likely conclude that continuing in this highly competitive environment wouldn't be justifiable, particularly from a cost to profit return perspective.
Again, neither option is the ideal situation, however, it is an option nonetheless. Fortunately, other exchanges will quickly pick up your network traffic, so there won't be any disruption in service.
The Importance of This News
For years, I have been an avid follower of Internet Exchange Points (IXPs). They have a major impact on both the speed and stability of the Internet. As a global IXP, AMS-IX surprised many people when it opted to exit the U.S. market.The first question that came to my mind after hearing about AMS-IX leaving the United States was 'Why are they doing this now?' Large corporations who operate in this space do not make such decisions without specific reasons.
AMS-IX Exiting the US Market
AMS-IX was founded in Amsterdam and has had enormous success within Europe. AMS-IX expanded to the United States in an effort to replicate that success. The latest announcement indicates AMS-IX has chosen to close its facilities in the U.S. and will shift its focus to areas where it can provide superior performance.To clarify quickly for you, here is how this translates:
• AMS-IX is discontinuing all operations for their exchange points located in the USA.
• Customers will need to switch their network traffic over to another Exchange.
• AMS-IX is going to put more focus onto Europe as well as other important global markets.
Though it seems simple, switching over network traffic, in reality, can take a lot of time and resources to accomplish.
Why Did AMS-IX Make This Decision?
Heavy CompetitionThe US exchange marketplace already has established strong players, who are Equinix IX, DE-CIX etc. Competing with these larger companies requires significant investments. If you're growing at a much lower rate than what AMS had been expecting, then they would likely conclude that continuing in this highly competitive environment wouldn't be justifiable, particularly from a cost to profit return perspective.
How It Impacts Hosting & VPS Providers
If you previously utilized AMS-IX in USA, then you'll now be looking at alternatives for your network traffic moving forward. Now, you may end up paying a higher price for transit connections or have to look for additional peering partners too.Again, neither option is the ideal situation, however, it is an option nonetheless. Fortunately, other exchanges will quickly pick up your network traffic, so there won't be any disruption in service.