11/29/2004 1

Network Planning Task Force

                                                               

“Consensus Building: Preliminary Rate Setting”

11/29/2004 2

NPTF FALL ’05 MEMBERS

■ Mary Alice Annecharico / Rod MacNeil, SOM

■ Robin Beck, ISC■ Chris Bradie/Dave Carrol, Business

Services■ Cathy DiBonaventura, School of

Design■ Geoff Filinuk, ISC■ Bonnie Gibson, Office of Provost■ Roy Heinz / John Keane/ Grover

McKenzie , Library■ John Irwin, GSE■ Marilyn Jost, ISC■ Deke Kassabian / Melissa Muth, ISC■ Doug Berger/ Manuel Pena,

Housing and Conference Services■ Mike Weaver, Budget Mgmt.

Analysis■ Dominic Pasqualino, OAC

■ Kayann McDonnell, Law■ Donna Milici, Nursing■ Dave Millar, ISC■ Michael Palladino, ISC (Chair)■ Dan Shapiro, Dental■ Mary Spada, VPUL■ Marilyn Spicer, College Houses■ Steve Stines / Jeff Linso, Div. of

Finance■ Andrew Selden*, PCBI■ Ira Winston / Helen Anderson,

SEAS, SAS, School of Design■ Mark Aseltine/ Mike Lazenka, ISC■ Eric Snyder*, Vet School■ Brian Doherty*/John Yates*, SAS■ Richard Cardona*, Annenberg■ David Seidell, Wharton■ James Kaylor, CCEB

* New Members in FY’05

11/29/2004 3

MEETING SCHEDULE – FY ‘05■ Summer Focus Groups

■ July 19■ August 2■ August 16

■ Fall Meetings■ September 20 Operational Briefing (Non-financial)■ October 18 Strategic Discussions (Security)■ November 01 Operational Discussions ■ November 15 Strategic Discussions ■ November 29 Financial Discussions■ December 6 Consensus/Prioritization/Rate Setting

11/29/2004 4

NPTF FY ’05 Progress to Date

■ Challenged and reaffirmed NPTF process.■ Refreshed NPTF principles.■ Updated FY ’05 – ’09 planning assumptions.■ Prepared 5 year N&T budget. (Summer

Submission)■ Held 3 summer focus groups and many 1-1

meetings with schools/center computing directors to gather customer feedback.

■ Set the Fall Agenda.■ Operational Briefing■ Security Briefing ■ Strategic Discussions

11/29/2004 5

Today’s Agenda■ Discuss revised assumptions■ Share cost-cutting measures■ Show N&T 5-year cash flow■ Show draft FY ‘06 rates■ Discussions and voting on new initiatives■ Preliminary rate setting

11/29/2004 6

Budget Assumptions■ Security concerns continue to be a high priority as

various viruses, worms, etc. have reduced Penn’s productivity levels. However no new monies are being requested for FY ’06.

■ 5 year phase-out of allocated monies ($2.317M) to occur from FY2003-07.

■ Telecommunications surplus, operating efficiencies and increased costs to offset allocated cost phase out.

■ Aggregate PennNet, Telecommunications and Video service rate increases projected at 1-2% maximum yearly, determined in conjunction with NPTF.

11/29/2004 7

Budget Assumptions (Continued)

■ Excellent bandwidth management techniques combined with a good Internet strategy have eased the pressure on developing tiered network connectivity options. However, this will continue to be explored and evaluated as the need/opportunity arises.

■ Separate SLAs for College Houses and Greeknet for maintenance and bandwidth.

■ FY2006-09 budget assumes Next Generation PennNet project averages $590k/year. Funding source is Telecommunications surplus.

11/29/2004 8

Budget Assumptions (Continued)■ No rate increases for existing Telecommunications

services. Some Video service rate increase in ’06. www.net.isc.upenn.edu/rates

■ For FY2006 College House students will continue to be billed indirectly as part of housing fees for baseline PennNet and Penn Video Network services.

■ Building entrance and router equipment are on a four-year replacement cycle.

■ Closet electronics and network servers are on a three-year replacement cycle.

■ Penn will continue to operate MAGPI, the Internet2 gigaPop with primary purpose to help lower Penn’s I2 and Internet costs and position for Penn’s likely need in the future for the National Lambda Rail (Internet3?).

11/29/2004 9

Budget Assumptions (Continued)

■ The growth rate in IP addresses from the schools/centers is projected to increase by 1000 per year from FY2005-09.

■ ISC managed wallplates projected growth at 1000 new per year.

■ The CSF will subsidize approximately 816 wired, public lab connections that have computers attached in FY2005. NPTF to decide for FY ’06.

■ The CSF will subsidize approximately 900 wireless public IP connections in FY’05. NPTF to decide for FY’06.

■ The NPTF to decide if we should do a school-based IP wireless subsidy for FY’ 05 and FY ’06.

11/29/2004 10

Subsidized Wired IP Addresses

SCHOOL/CENTER TYPE NUMBERSAS PUBLIC 114NURSING PUBLIC 32SEAS PUBLIC 118SCHOOL OF DESIGN PUBLIC 2MEDICINE PUBLIC 1LIBRARY PUBLIC 169COLLEGE HOUSES/ACADEMIC SRVCS PUBLIC 246ISC PUBLIC 5ISC CENTRAL POOL CLASSROOM 129TOTAL 816

11/29/2004 11

Subsidized Wireless IP Adresses(Public)

Building DHCP range# of Ip

Addresses Domain (new) # of APsU-S quare (1 AP in GRT CRC) 128.91.24.33- 128.91.24.62 30 wireless-pennnet.upenn.edu 3

Museum Library 128.91.27.11- 128.91.27.62 52 wireless-pennnet.upenn.edu 1

LUW 128.91.58.76- 128.91.58.126 51 wireless-pennnet.upenn.edu 1

JS N-Biomed Lib 128.91.27.76- 128.91.27.126 51 wireless-pennnet.upenn.edu 3

HRN 165.123.93.11- 165.123.93.107 97 wireless-pennnet.upenn.edu 5

Houston-Hall 128.91.25.51- 128.91.25.100 50 wireless-pennnet.upenn.edu 4

HNW (Harnwell) 128.91.24.95- 128.91.24.126 32 wireless-pennnet.upenn.edu 1

HIL 128.91.24.191- 128.91.24.254 64 wireless-pennnet.upenn.edu 4Furness-wireless - 1 AP is on 4th floor confe re nce room outside l ibrary are a 128.91.26.139- 128.91.26.190

52

wireless-pennnet.upenn.edu 6

College-green-wireless 128.91.25.161- 128.91.25.235 75 wireless-pennnet.upenn.edu 3

Bookstore-wireless 128.91.26.11- 128.91.26.50 40 wireless-pennnet.upenn.edu 1

HRS -Wireless 165.123.95.11- 165.123.95.107 97 wireless-pennnet.upenn.edu 2150 – DHCP

65 - Static

Totals 906VPL Wireless 128.91.128.40- 128.91.128.254 wireless-pennnet.upenn.edu 21

11/29/2004 12

Subsidized Wireless IP Adresses(School-based)

Building DHCP range# of Ip

Addresses Domain (new) # of APsSFR-VPUL 128.91.134.12- 128.91.134.21 10 wlan.vpul.upenn.edu 1

M EY 128.91.28.11- 128.91.28.62 52 wlan.design.upenn.edu 1

M EL 128.91.59.150- 128.91.59.210 9 wlan.ora.upenn.edu 3

LCT-3601-Locust 128.91.59.11- 128.91.59.20 10 wlan.vpul.upenn.edu 1

Castor-wireless 128.91.26.75- 128.91.26.94 20 wlan.ssw.upenn.edu 1

3401- Wireless 165.123.94.21- 165.123.94.80

60

wlan.isc-net.upenn.edu 5

HNT-Wireless 128.91.92.61- 128.91.93.254 275 wlan.wharton.upenn.edu 25

SDH-Wireless 128.91.80.254- 128.91.81.72 75 wlan.wharton.upenn.edu 34-SDH(22)-VAN(6)-SCC(2)-LFR(1)-MCN(1)-CPN(2)

LSW (Kelly Writer’s House) 128.91.58.140- 128.91.58.19051

wlan.lsw.greeknet.group .upenn.edu 1

GEB 128.91.27.145- 128.91.27.195 51 wlan.gse.upenn.edu 8

EVN 128.91.61.30- 128.91.61.55 26 wlan.dental.upenn.edu 7 (1AP in lib)

PIN 128.91.26.203 128.91.26.214 12 wlan.vpul.upenn.edu 2

GYM 128.91.138.11- 128.91.138.50 20 Wlan.dria.upenn.edu 2

Law-Wireless 130.91.208.61-130.91.209.174 370 wlan.law.upenn.edu 37

Totals 1041

11/29/2004 13

Budget Assumptions (Continued)

■ To retain and recruit appropriate N&T IT staff, 3% compensation has been budgeted to include annual performance increases, equity increases, bonuses, promotions and reclassifications from FY2005 - 09.

■ In FY2005 a 53% overhead rate was projected to cover costs of benefits, rent, training, computers, telephones, etc. Our FY’06 overhead rate is projected at 51.8%, despite an increase in the benefit rate.

■ The NOC will not be physically staffed (7x24x365) through FY2009. It will continue to operate from 6 AM – 11 PM, M-F with the rest of the week covered by technical staff on beepers.

■ N&T total expense budget increases from $22M in FY ’02 to only $23.5M in FY ’09. (< 1%/year)

11/29/2004 14

N&T Overhead Cost Breakdown FY2006

FY'06 % of OHRent 395,000$ 6.8%Travel/Conf fee/training 230,000$ 3.9%Computer equipment/supplies 140,000$ 2.4%Furniture/Facilites/Misc 40,000$ 0.7%Office supplies/Books/subscriptions 27,000$ 0.5%Copying/printing/mail services 32,000$ 0.5%Cell phones/pagers 50,000$ 0.9%Telephone/PennNet charges 75,000$ 1.3%Remote Access 25,000$ 0.4%Misc. Expenses 26,500$ 0.5%

Expense Subtotal 1,040,500$ 17.8%Total Salary 5,843,000$ Employee Benefit Rate 34.0%Total OH rate 51.80%

11/29/2004 15

FY’05 N&T Cost-Cutting Measures■ Dropping 2 full-time contractors in FY ‘05.■ Dropping 4 part-time contractors in FY ‘05.■ Lowering voice systems expenses by $100k in

FY ‘05.■ Outsourcing some job functions.■ Insourcing some job functions.■ Many internal organizational changes.■ Many contract re-negotiations.

11/29/2004 16

N&T Financial Information■ Five-year cash flow■ N&T FY2006 projected revenue■ Telecommunications Revenue■ Wallplate rates■ Wireless AP rates■ General information■ Central Service Fee

11/29/2004 17

Projected N&T 5-Year Cash Flow

DIRECT CHARGES FY'05 Budget FY'06 Budget FY'07 Budget FY'08 Budget FY'09 Budget TELECOMMUNICATIONS 9,440,000$ 9,340,000$ 9,240,000$ 9,240,000$ 9,240,000$ CENTRAL SERVICE FEES 4,975,000$ 5,275,000$ 5,500,000$ 5,700,000$ 5,950,000$ NETWORK INSTALLATIONS/PROJECTS 1,100,000$ 1,100,000$ 1,100,000$ 1,100,000$ 1,100,000$ WALLPLATE CONNECTIONS 2,820,000$ 2,830,000$ 2,975,000$ 3,220,000$ 3,620,000$ EMAIL, WEB HOSTING, VIDEO 665,000$ 725,000$ 775,000$ 825,000$ 875,000$ MAGPI SERVICES 1,100,000$ 1,200,000$ 1,300,000$ 1,400,000$ 1,500,000$ SUBTOTAL DIRECT CHARGES 20,100,000$ 20,470,000$ 20,890,000$ 21,485,000$ 22,285,000$

ALLOCATED COSTS NEXT GENERATION PENNNET 337,000$ -$ -$ -$ NETWORK ENGINEERING/SERVICES 591,000$ 465,000$ -$ -$ INTERNET2 -$ -$ -$ -$ SUBTOTAL ALLOCATED COSTS 928,000$ 465,000$ -$ -$

GENERAL FEE PENN VIDEO NETWORK 590,000$ 601,000$ 613,000$ 625,000$ 638,000$ SUBTOTAL GENERAL FEE 590,000$ 601,000$ 613,000$ 625,000$ 638,000$

TOTAL INCOME 21,618,000$ 21,536,000$ 21,503,000$ 22,110,000$ 22,923,000$ TOTAL EXPENSE 21,651,000$ 21,623,000$ 21,413,000$ 22,004,000$ 22,999,000$

Cumulative (Surplus) / Deficit 33,000$ 120,000$ 30,000$ (76,000)$ -$

11/29/2004 18

FY2006 Total Revenue

14%

5%

26%

3%

9%

7%

4%

22%

6%4% TELECOM LINES

VOICEMAIL

ALLOCATION

LONG DISTANCE CALLING

TELECOM INSTALLATIONS

CENTRAL SERVICE FEES

NETWORK INSTALLATIONS

WALLPLATE CONNECTIONS

EMAIL, WEB HOSTING, VIDEO

MAGPI SERVICES

11/29/2004 19

Telecommunications Projected Revenue (FY2005)

Service Admin Student TotalEquipment/lines 3,875,000$ 615,000$ 4,490,000$ Voicemail 795,000$ 25,000$ 820,000$ Allocation 1,380,000$ -$ 1,380,000$ Installation 800,000$ -$ 800,000$ Usage (LD/local) 1,810,000$ 630,000$ 2,440,000$ Miscellaneous 113,000$ 35,000$ 148,000$ Total 8,773,000$ 1,305,000$ 10,078,000$

11/29/2004 20

Telecommunications Projected Revenue (FY2006)

Service Admin Student TotalEquipment/lines 3,975,000$ 615,000$ 4,590,000$ Voicemail 795,000$ 25,000$ 820,000$ Allocation 1,380,000$ -$ 1,380,000$ Installation 600,000$ -$ 600,000$ Usage (LD/local) 1,750,000$ 200,000$ 1,950,000$ Miscellaneous 100,000$ -$ 100,000$ Total 8,600,000$ 840,000$ 9,440,000$

11/29/2004 21

FY2006 Port Rental Expense Breakdown (10baseT)

Elements Costs (Annual)

Staff including overhead $120,000

Equipment $1,150,000

TOTAL $1,270,000

Number Ports 35,000 ÷ 12 month

Monthly Rate $3.02 per port

11/29/2004 22

FY2006 Connection Maintenance Expense Breakdown (10baseT)

Elements Costs (Annual)

Staff including overhead(NOC, Net Management, second shift, OT, beeper pay)

$1,065,000

Hardware/Software/Tools/Maintenance Contracts

$205,000

TOTAL $1,270,000

Number Ports 35,000 ÷ 12 month

Monthly Rate $3.02 per port

11/29/2004 23

Lower 100 baseT Rates Effective 11/1/04

100 baseT (old) 100 baseT (new)

Central Service Fee $10.43 $10.43

Wallplate Fee $11.70 $ 6.03*

Bandwidth Surcharge

$10.00 $10.00

Total

$32.13

$26.46

* Rate lowered by $5.67 per month.

11/29/2004 24

Wireless Costs: Access Point Ongoing Costs FY ‘05

Per AP Support Costs

Description Unit Costs Comments

Hardware Spares Inv. $10.97 15% of Hardware costs typical.

AP Administration $6.25 Config, access, and SW Upgrade Mgmt. 1hr per year)

Trouble Calls $10.83 1 hr Sr. Net specialist & 1 hr NOC Specialist per year

Wireless Tools/Test Equip.

$2.42 Wireless LAN Tools & Support Contracts(~$4500 per year)

Total Monthly Cost $30.47

Assumptions■ Maintenance Fees are per AP Device in each wireless LAN

■ Central service fees are billed per IP address in use on the wireless LAN

■ Does not include a 10/100Base-T or vLAN port connectivity charge to PennNet

■ 100Base-T port will be charged at 10Base-T Rate due to 11mb limit

11/29/2004 25

FY2005 Projected CSF Baseline Expenses (Fall, 2003 data)

FY'05 updated Nov. 2004CSF BUNDLE OF SERVICES Computer H/S, OS ISC Sttaff Total Main, Licenses CAMPUS BACKBONE INFRASTRUCTURE 972,500$ 520,106$ 1,492,606$ INTERNET/ BAND. MANG./ DIF BILING DEV/NETWORK SECURITY 1,141,500$ 247,686$ 1,389,186$ INTERNET2 223,397$ 118,786$ 342,183$ NOC/NETWORK MANAGEMENT/EXT HOURS 57,910$ 470,207$ 528,117$ FIBER AND CABLE MANAGEMENT 97,910$ 152,302$ 250,212$ WWW 71,530$ 175,000$ 246,530$ INFRASTRUCTURE SOFTWARE SERVICES 91,795$ 137,442$ 229,237$ NETNEWS 27,119$ -$ 27,119$ MAIL RELAY, LISTSERV, DIRECTORY 46,777$ 120,319$ 167,096$ CENTRALIZED WIRELESS AUTH/R&D 139,000$ 20,000$ 159,000$ PENN COMMUNITY 51,500$ 51,500$ TSS WIRELESS SUPPORT 20,000$ 20,000$ SECURITY TOOLS, EDUCATION & RESPONSE -$ 98,200$ 98,200$ TOTAL 2,869,438$ 2,131,548$ 5,000,986$ FY'05 PROJECTED AVG IP ADDRESSES 39,967FY '05 RATE 10.43$

11/29/2004 26

CSF Details■ Campus Backbone

■ Building Entrance Equipment■ Routers■ Building Redundancy■ Next Generation Fiber■ NGP/NAPs (currently subsidized by Telecom budget

$590K/year)■ Mail Relay, Listserv, Directory

■ New NISC & NOC■ Upgraded Listserv■ Classlists

■ Centralized wireless authentication■ Netman■ PUMA■ 802.1X

11/29/2004 27

CSF Details (contd.)■ Fiber and Cable Management

■ CAD drawings■ Databases■ Coordination with Facilities

■ WWW (Akamai)■ DR■ Peak Load

■ Infrastructure and Software Services■ DNS■ DHCP■ Radius■ PennNames

■ Internet2■ DWDM

11/29/2004 28

CSF Details (contd.)■ Internet

■ Bandwidth Management■ Differential Billing Development■ Intrusion Detection■ Net Flow■ DWDM■ Network Security

■ NOC/Network Management■ PUMA■ Arbor■ SALT■ Extended Hours

■ Emerging Technology/Strategies■ VoIP■ Mobile Computing■ Video

11/29/2004 29

FY2006 Projected CSF RatesFY'06 PROJECTED

CSF BUNDLE OF SERVICES (BASELINE) Computer H/S, OS ISC Staff Total new total Main, Licenses CAMPUS BACKBONE INFRASTRUCTURE 975,000$ 548,290$ 1,523,290$ 30,684$ INTERNET/ BAND. MANG./ DIF BILING DEV/NET SECURITY 849,000$ 413,953$ 1,262,953$ (126,233)$ INTERNET2 208,380$ 100,121$ 308,501$ (33,682)$ NOC/NETWORK MANAGEMENT/EXT HOURS 189,155$ 334,132$ 523,287$ (4,830)$ FIBER AND CABLE MANAGEMENT 40,000$ 202,022$ 242,022$ (8,190)$ WWW 92,000$ 195,681$ 287,681$ 41,151$ INFRASTRUCTURE SOFTWARE SERVICES(NOC) 117,000$ 195,910$ 312,910$ 83,673$ NETNEWS 22,701$ 68,707$ 91,408$ 64,289$ MAIL RELAY, LISTSERV, DIRECTORY (NISC) 52,000$ 186,176$ 238,176$ 71,080$ CENTRALIZED WIRELESS AUTH -$ 222,061$ 222,061$ 63,601$ PENN COMMUNITY BASELINE 51,500$ 51,500$ -$

TSS WIRELESS SUPPORT 20,000$ 20,000$ -$ SECURITY TOOLS, EDUCATION & RESPONSE -$ 98,200$ 98,200$ -$ TOTAL 2,545,236$ 2,636,753$ 5,181,989$ 181,543$ FY'06 PROJECTED AVG IP ADDRESSES 41,360FY'06 DRAFT RATE 10.44$

1. Y/N PENN COMMUNITY ADDITIONAL (New ) 50,000$ 50,000$ 2. Y/N PENNKEY SUPPORT (New ) 70,000$ 70,000$ 3. Y/N PENN COMMUNITY "ALWAYS AVAILABLE" (New ) 30,000$ 30,000$

TOTAL 2,545,236$ 2,786,753$ 5,331,989$ FY'06 PROJECTED AVG IP ADDRESSES 41,360FY'06 DRAFT RATE 10.74$ 3.0%

4. Y/N SCHOOL-BASED WIRELESS IP SUBSIDY 20% NEW (- 240 IPs) 41,120 10.81$ 3.6%5. Y/N PUBLIC LAB SUBSIDY IN BASELINE (+600 IPs) 41,960 10.59$ 1.6%

6. Y/N PUBLIC WIRELESS IP SUBSIDY IN BASELINE (+1000 IPs) 42,360 10.49$ 1.0%

11/29/2004 30

Next Steps■ NPTF makes rate recommendations.■ Finalize N&T FY ‘05 - FY ‘09 budgets.■ Rate recommendations presented to Provost.■ Final FY ‘06 rates established.■ Rates sent to ABA in late December.■ Rates published in Almanac in January.