1. The Business and Technology of Caching-based Services for State Education Networks Mike Lane Cacheflow, Inc. mailto:mike@cacheflow.com Phone (773) 383-9955 mailto:mike@cacheflow.com The Business and Technology of Caching-based Services for State Education Networks Mike Lane Cacheflow, Inc. mailto:mike@cacheflow.com Phone (773) 383-9955 mailto:mike@cacheflow.com

2. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 2 Agenda q Problems q Solutions q Deployment Scenarios  Benefits and drawbacks q Business Models q Questions

3. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 3 The Perennial Problem q How should State Education Networks transform new, versatile technology into cost-effective services for their K-20 clientele? q Today’s Case: How should a StateNet transform a Network Caching platform into a portfolio of services that will attract enough K-20 clientele?

4. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 4 What Do K-20 Clientele Want? q Accelerate Internet performance q Control bandwidth costs q Block unacceptable content q Scrub viruses from content q Enhance e-Learning services q Gain & retain appropriate local control

5. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 5 What Do StateNets Want? q Increase portfolio of network-based services that meet unmet K-20 needs, and are  Modestly “profitable”  Scalable  Strategic

6. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 6 Is Network Caching a K-20 Service? q The Past  Difficult for Statenets to “productize” & sell caching- based value-added services  Easy to add caching-only as hidden infrastructure whose cost borne equally by all q The Present  New caching platforms permit scalable & supportable customization of multiple content-services at both central & remote locations

7. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 7 Layered Services Optimized Appliance Authentication Policy Development Reporting Authorization (Policy) Policy Enforcement Logging and log management Proxy Framework Content Caching/Acceleration/Bandwidth Gain ( HTTP, Real, WMT ) Virus Protection URL Filtering Web Access Policy Management Bandwidth Control eLearning Services

8. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 8 School Caching Throughout the Network Regional PoP School Public Internet Regional PoP School District School Infrastructure Caches Save Bandwidth Global Policy Services Virus Scanning URL Filtering School District Caches Save Bandwidth Improve performance District Policy Services Virus Scanning URL Filtering Per School Caches Save Bandwidth Improve performance Enable eLearning Bandwidth Management Granular Policy Services Virus Scanning URL Filtering

9. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 9 Centralized Benefits / Drawbacks q Benefits  Only a few boxes to manage  Bandwidth gain for the service provider  Revenue generating opportunity l Without cannibalizing bandwidth revenue  Moderate performance improvement q Drawbacks  Difficult for granular policy controls  Limited content acceleration for schools  Larger up front investment

10. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 10 Distributed Benefits / Drawbacks q Benefits  Bandwidth gain for customers justifies costs  Significant performance improvement  Allows schools to customize policy l E.g., different filtering users for teachers or during after school hours  Offloads firewalls  Revenue generating opportunity  Flexibility to be a managed service or purchased  Less risk – Purchase as each customer signs up  Box on premise provides platform for future services q Drawbacks  Many boxes to manage l Configuration management becomes important  May cannibalize bandwidth revenue

11. Business Models

12. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 12 Caching q Stores popular content closer to users  Saves Internet bandwidth l 50% hit rate seen at some schools  Dramatically improves performance l 50% on misses l 90% on hits Member School Public Internet Browser Cache Origin Server Browser

13. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 13 Distributed (Per School District) Caching q Low end CacheFlow per site q Allows school to delay purchasing 2 nd circuit q Cost Justification q Additional benefits  Significantly improves response times  Platform for additional services… * WAN prices and pricing models vary widely based on state, distances, subsidy, etc.

14. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 14 Centralized Caching q Not well suited to a service model  Customer expects good performance  Doesn’t save customer bandwidth q Allows StateNet to get more from the network q Cost Justification for the service provider q Additional benefits  Significantly improves overall network performance  Platform for additional services…

15. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 15 Viruses Pose a Real Threat q 2001 Computer Security Institute/FBI findings:  94% of respondents detected computer viruses  91% detected employee abuse of Internet access privileges l Downloading pornography or pirated software  90% of those attacked reported vandalism  78% detected denial of service attacks  48% of respondents detected system penetration from the outside  http://www.gocsi.com/prelea/000321.html

16. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 16 Distributed (Per School District) Virus Scanning q Low-end CacheFlow with Virus Scanning per site  Protects schools IT resources q Cost justification q Additional caching benefits are still there

17. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 17 Centralized Virus Protection Service q Well suited for service model  Charge customers per seat protected q Justification for the service provider q Additional revenue  2 Year added revenue (for 1000 seats) - $50,000

18. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 18 Content Filtering q The Internet is full of content that is inappropriate or even harmful for children  Pornography, bombs, hate, drugs, gambling, etc. q CIPA – Children’s Internet Protection Act states that to receive eRate, ESEA Title IId and LSTA funding, certain measures to protect the children must be taken q URL filtering is the way to qualify

19. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 19 Distributed (Per School District) Content Filtering q Low end CacheFlow with Filtering per site  Protects children and qualifies under CIPA q Cost justification  Cache/Filtering cost – Year 1 - $6,300, Year 2- $2,150  Cost Savings cache – Year 1- $8,500*, Year 2 - $8,000*  Cost Savings Filtering – Access to funds  2 Year savings $8,050 + children are protected q Additional caching benefits are still there

20. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 20 Centralized Content Filtering Service q Well suited for service model  Charge customers per seat protected q Justification for the service provider  Cache cost – Year 1 - $36,000, Year 2- $3,600  Filtering cost – Year 1 - $10,000, Year 2 - $10,000  B/W Cost savings – Year 1 - $40,000, Year 2 - $40,000  2 Year total savings $20,400  2 Year added revenue (for 10000 seats) - $100,000 q Additional benefits  Significantly improves overall network performance  Platform for additional services…

21. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 21 Other Potential Services q High quality access to live or on-demand streaming content  Events  Educational broadcasting q eLearning Services q Bandwidth management  Prevents streaming from bringing down the network q Added security  Script whacking

22. Making the Internet Content-Smart ™ EnterpriseManaged Service ProviderContent Provider 22 Policy Becomes important q Bring more control opportunities to the individual schools q Group based rules  Group Teachers can browse anywhere  Group Students blocked from pornography, drugs, violence, gambling, and hate q Time of day policy q Content based policy  Group Students