All tactics in the rest of this chapter focus on one of the parameters of the value of the IXP model.

The value of the IXP is proportional to the number of participants (the how many), the routes available at the IXP (the who there), and the volume of traffic peered (the how much), as shown mathematically as follows:

**Value of the IXP** = **ValueDerived** - **CostToParticipate**

We express this more succinctly as the function (f) below:

**Value of the IXP** = f**(p**, **r,** **v**, **m**) - **c**

where on the value side:

**p** = the number of participants at the IXP – the “How many?”

**r **= the number and uniqueness of routes available at the IXP – the “Who there?”

**v** = the volume of traffic that is peered at the IXP – the “How much?”

**m** = the match of the service to the market needs and stickiness – the “Why are they there?”

and on the cost side:

**c** = the cost of participation at the IXP (colocation, switch ports, equipment, cross-connect, membership fees, etc.)

All of the tactics in this chapter manipulate one or more of these parameters. We will group them based on whether they increase the value side of the equation or the cost side of the equation.

These tactics all try to increase the value of the IXP

**Value of the IXP** = **ValueDerived** - **CostToParticipate**

**Value of the IXP** = f**(p**, **r,** **v**, **m**) - **c**

by manipulating one of the value parameters:

**p**: The population

**r**: The routes available

**v**: The volume of traffic exchanged

**m**: The market perception of the IXP

**c:** The cost of participatioon at the IXP