11/29/20041 Network Planning Task Force “Consensus Building: Preliminary Rate Setting”

11/29/20042 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

11/29/20043 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

11/29/20044 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

11/29/20045 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

11/29/20046 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 FY ■ 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.

11/29/20047 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. ■ FY budget assumes Next Generation PennNet project averages $590k/year. Funding source is Telecommunications surplus.

11/29/20048 Budget Assumptions (Continued) ■ No rate increases for existing Telecommunications services. Some Video service rate increase in ’06. ■ 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?).

11/29/20049 Budget Assumptions (Continued) ■ The growth rate in IP addresses from the schools/centers is projected to increase by 1000 per year from FY ■ 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/ Subsidized Wired IP Addresses

11/29/ Subsidized Wireless IP Adresses (Public)

11/29/ Subsidized Wireless IP Adresses (School-based)

11/29/ 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 FY ■ 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/ N&T Overhead Cost Breakdown FY2006

11/29/ 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/ 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/ Projected N&T 5-Year Cash Flow

11/29/ FY2006 Total Revenue

11/29/ Telecommunications Projected Revenue (FY2005)

11/29/ Telecommunications Projected Revenue (FY2006)

11/29/ FY2006 Port Rental Expense Breakdown (10baseT) ElementsCosts (Annual) Staff including overhead$120,000 Equipment$1,150,000 TOTAL$1,270,000 Number Ports35,000 ÷ 12 month Monthly Rate$3.02 per port

11/29/ FY2006 Connection Maintenance Expense Breakdown (10baseT) ElementsCosts (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 Ports35,000 ÷ 12 month Monthly Rate$3.02 per port

11/29/ Lower 100 baseT Rates Effective 11/1/04

11/29/ Wireless Costs: Access Point Ongoing Costs FY ‘05 Per AP Support Costs DescriptionUnit CostsComments Hardware Spares Inv.$ % of Hardware costs typical. AP Administration$6.25Config, access, and SW Upgrade Mgmt. 1hr per year) Trouble Calls$ hr Sr. Net specialist & 1 hr NOC Specialist per year Wireless Tools/Test Equip. $2.42Wireless 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/ FY2005 Projected CSF Baseline Expenses (Fall, 2003 data)

11/29/ 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/ 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/ 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/ FY2006 Projected CSF Rates

11/29/ 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.