Financial services enterprises need to provide convenient and sleek digital experiences to their customers without compromising security or reliability. That’s easier said than done. Increases in cloud-based services, integration with technology partners and bandwidth demands are taking their toll on network infrastructure. To remain relevant, networks within the financial services sector need to think differently about their network performance management.

As a partner of Digital Realty, the London Internet Exchange (LINX) – a mutually governed Internet Exchange Point (IXP) – provides its members with a comprehensive suite of interconnection solutions. These solutions encompass access to cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. In addition to its core internet peering service, LINX provides customers with enhanced network management capabilities, consultation services and a 24/7 on call engineering team. Their services often result in cost savings, redundancy and heightened operational efficiency.

This article explores the importance of a future-proof network management strategy for financial services and how peering plays a critical role in achieving this. This goes beyond the switches, racks and cables in a data centre environment, and more about the routing of network traffic.

What is network performance and how can it be measured?

Network performance is the process of using qualitative and quantitative means to measure the performance level of any given network. It can be used to review and improve the quality of network services.

Network performance is usually measured from an end-user perspective, using statistics and metrics from the following network components:

• Bandwidth or capacity: The amount of data needing to be transferred

• Throughput: The amount of data successfully being transferred over the network

• Latency: Any delays in the network causing packet transfers to be slower than usual

• Data loss: Any data packets that are lost in delivery

What is effective network performance management and why is it important for financial services?

Network performance management involves regular monitoring and troubleshooting as well as making necessary changes to ensure everything runs smoothly and efficiently. The purpose is to ensure that online services function well and meet the needs of their users – whether this is an internal workforce, end users or customers.

Financial services networks thrive when they have control of their network traffic. They can ensure not only that customer data is secure and redundant, but also that their online services can function with minimal latency.

The role of peering in a future-proof network management strategy

Peering is a process by which two networks connect and exchange traffic in a central location, like an internet exchange point (IXP). This process provides a direct way for users to connect without having to pay a third party to carry that traffic across the internet. Put simply, peering is a network of networks, and has played a critical part in the evolution of the internet over the past 30 years.

Conventional network traffic management can involve a lot of hops and routing of data packets where traffic can often travel down complex, lengthy routes. This method can result in less control of both the route and the traffic, longer end-to-end transfer and the risk of being exposed to vulnerabilities. By connecting ISPs, partners and customers directly at a hub like an IXP, peering enables financial services to deliver faster, more reliable digital services at a lower cost and with greater control and insights into their data.

How peering enables a redundancy set-up for network management

Redundancy refers to a system design where a component is duplicated so that in the event of a component failure, IT equipment is not impacted. The main goal of redundancy is to ensure zero downtime, even in worst case scenarios.

Network redundancy is the process of providing multiple paths for traffic, so that data can keep flowing even in the event of a failure. This could mean a presence in multiple data centres and or options for traffic to reroute should it need to. LINX offer a multi service port from Digital Realty locations in London where networks can choose a hybrid and redundant set up to suit. Whether they need cloud access and or peering, the network has complete control and visibility of the traffic at all times.

How the Digital Realty & LINX Partnership Assists Networks in London

The partnership between LINX and Digital Realty further strengthens London's position as a leading global hub for digital innovation and connectivity. Networks located within Digital Realty facilities in London can access LINX’s range of interconnection services, peering and more. As London remains Europe’s largest financial marketplace, networks in this sector can meet key partner networks and ISPs to ensure a more secure, resilient and improved network.

Frequently Asked Questions

What is an Internet Exchange?

An Internet Exchange (IX) is a place where many different types of providers and organisations come together to interconnect their technology. Providers can establish a single connection to an IX which allows them to exchange traffic with many participants. This makes the internet faster and more cost efficient for everyone using the exchange.

What is peering?

Peering is a process where two internet networks connect and enable users to exchange traffic. This process provides a direct way for users to connect without having to pay a third party to carry that traffic across the Internet. Peering is distinct from transit, the more usual way of connecting to the Internet, in which an end user or network operator pays another network operator to carry traffic for them.

What are the benefits of peering?

For decades peering has been the primary method of exchanging internet traffic between networks. As it removes the intermediary stages in the data transfer process, organizations that choose to peer can create faster and more reliable digital experiences for their end-users and can benefit from the following:

• Improved network performance

• Greater reach

• Scalability

• Lower network latency

• Leveraging a community

• Reduced costs

What is the difference between public and private peering?

Public peering involves the connection of different networks at Internet Exchange Points (IXPs). These exchange points act as hubs where various networks exchange traffic and data. Whereas private peering involves the direct connection between two specific networks, established through physical connections or virtual circuits.