Networking

The Low Latency Network - Design Considerations

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Executive Summary

With the idea of discussing lowest latency requirements for a network, this paper talks about various factors that need to be kept in mind when designing the network and transferring services to that network. This paper lists a range of applications that are affected by latency including online gaming, distribution, interactive conference, automatic and algorithmic trading, securities and market analysis, ECN access, inter-exchange connectivity, and fiber channel transmission. With the growth in the market demand for low latency networking, this paper talks about all network latency, its features, and benefits. It also mentions various latency definitions including host latency and network latency. Host latency is designed to process messages from the sending and receiving hosts and network latency defines the delays that take place inside the network. The network design for ultra low latency is also mentioned in this paper. Lowest latency network utilizes fiber optic media, passive components, non-FEC transponders, and dispersion compensation modules. The latency data mentioned in this article is important in comparing network designs. It is distributed according to requirement of network modules of various organizations. The traditional applications were designed to tolerate more than 100 milliseconds of latency while the algorithmic trading and other financial applications are designed to be receptive to milliseconds or microseconds delays.

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