Internet exchange traffic/service sharing and market competition

Traffic behavior in a large-scale network can be viewed as a complex non-linear system. It is very difficult to illustrate the long-term network service traffic behavior in a large-scale network. The Internet underlying the modern SCM can be seen as the combination of Service Providers (SP) and Internet Exchange (IX) providers. Due to market competition among SPs and IX, Internet users, so as those logistic services, will experience the different kind of quality of services (QoS), which effectively affect the network traffic model. The paper presents a cybernetic traffic model in the Internet Exchange (IX) environment. The model simulates SP/IX market competition behavior. Exchange-providers´ market share will be diluted through market competition. Several routing as well as service binding strategies are proposed in the study. The routing strategies vary with the different competing environment. The model is thus meant to lead competitive pricing strategies and capacity allocation for intelligent SCM decision supports.