On 24/04/2013, at 8:10 AM, Andrew Latham <lath...@gmail.com> wrote:

> On Tue, Apr 23, 2013 at 5:41 PM, Valdis Kletnieks
> <valdis.kletni...@vt.edu> wrote:
>> I didn't see any mention of this Tony Hain paper:
>> 
>> http://tndh.net/~tony/ietf/ARIN-runout-projection.pdf
>> 
>> ARIN predicted to run out of IP space to allocate in August this year.
>> 
>> Are you ready?
> 

The prediction of runout business is extremely hard. All of these predictions 
are based on the basic premise that what happened yesterday will most likely 
happen tomorrow. And in a world of very large populations this is highly likely 
- the larger the population its often the case that the smaller the impact of 
individual variations in behaviour. That means that once you get a very large 
population you'd expect a relatively low level of uncertainty in trend-based 
predictive models.

But the world of addresses is not so well behaved. For some years now we've 
seen the address world bifurcate into a small number of very large actors and a 
large number of much smaller actors. In the address world it was observed that 
less than 1% (its closer to around 0.5%)  individual allocations account for 
more than half of the number of allocated addresses. This becomes a problem in 
the predictive models, as the dominant factor in address consumption is now the 
actions of some 20 or so very large entities. If they all fronted at the 
registry's front doors and asked for a three month allocation, and do so again 
in 90 days, and so on, then its pretty obvious that ARIN's remaining 40M 
addresses would not last more than one or two iterations of this cycle.

But what has been apparent in the ARIN region since the IANA runout of February 
2011 has not been panic, but restraint. If you look at the run-down' of the 
address pool in ARIN over time 
(http://www.potaroo.net/tools/ipv4/arin-pool.png), you could certainly make the 
case that there was a pronounced run on address resources in ARIN in the last 
quarter of 2010, but it all changed in 2011. The ensuing 14 months following 
IANA runout, through 2011 and early 2012, saw a pronounced change in the 
region, and ARIN's address consumption in that period slowed down to a 
consumption rate that got as low as 1M addresses per month. This coincided in a 
change in the address allocation policy to reduce the time horizon of 
"demonstrated need" from 12 months to 3 months, but that factor alone would not 
account for the entirety of this slow down in the address consumption rates 
over this 14 month period. 

Following a single largish allocation in early 2012 we've seen the ARIN address 
consumption rate increase somewhat, and the average rate of address consumption 
is currently around 2M addresses per month. If this rate of address consumption 
continues, the ARIN will reach its last /8 in early 2014, and if this rate 
persists, then the registry will exhaust its pool around the end of that year, 
or early 2015.

But given the uncertainty factors here as they relate to the distribution of 
large and small consumers in this area and changing sentiment about whether or 
not panic is a factor in address demands, I'd have to comment that the 
uncertainty factor of any prediction is high. Its quite plausible that 
exhaustion could occur some 6 - 9 months earlier than these dates. 

However, personally I find it a little hard to place a high probability on 
Tony's projected exhaustion date of August this year. I also have to qualify 
that by noting that while I think that a runout of the remaining 40 M addresses 
within 4 months is improbable, its by no means impossible. If we saw a re-run 
of the address consumption rates that ARIN experienced in 2010, then it's not 
outside the bounds of plausibility that ARIN will be handing out its last 
address later this year. 

thanks,

Geoff



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