Transcript Agenda

Network Planning Task Force
“Setting the Stage”
9/15/2003
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Active Task Force Members
http://www.upenn.edu/computing/group/nptf/
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Mary Alice Annecharico / Rod
MacNeil, SOM
Robin Beck, ISC
Doug Berger / *Manuel Pena,
Housing & Conference Services
Chris Bradie, Business Services
Chris Field, GPSA (student)
Cathy DiBonaventura, School of
Design*
Geoff Filinuk, ISC
Bonnie Gibson, Office of Provost
Roy Heinz / John Keane, Library
John Irwin, GSE
Marilyn Jost, ISC
Carol Katzman, Vet School
Deke Kassabian / Melissa Muth, ISC
Mike Lazenka, ISC
9/15/2003
*New FY ‘04
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Robert Helfman, Budget Mgmt.
Analysis
Dan Margolis, SEAS* (student)
Chris Massicotte, Audit & Compliance
Gerry McCartney / *David Seidell,
Wharton
Kayann McDonnell, Law
Donna Milici, Nursing
Dave Millar, ISC
Michael Palladino, ISC (Chair)
Andrew Rappe, Chemistry Faculty
Dan Shapiro, Dental
Mary Spada, VPUL
Marilyn Spicer, College Houses*
Steve Stines / Jeff Linso, Div. of
Finance
Ira Winston / Helen Anderson, SEAS,
SAS
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NPTF Meetings
■ Dates
■ 9/15, 9/29 (1:30 – 3:30 PM), 10/6, 10/20?, 11/3, 11/17
■ 12/1 – State of the Union
■ Time
■ 1:30 – 3:00 PM
■ Place
■ 357A conference room at 3401 Walnut Street, 34th street
entrance, elevator to 3rd floor (near Starbucks)
9/15/2003
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NPTF Agenda
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Review process, principles and budget assumptions
used in 5-year budget submission.
Discuss operational/baseline activities.
Address challenges/topics and future directions.
Review N&T financial information.
9/15/2003
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NPTF Process
REVIEW PRINCIPLES
UPDATE ASSUMPTIONS
IDENTIFY ISSUES
DRAFT 1/5 YEAR BUDGETS
IMPLEMENT
CHANGES
GENERATE
CHALLENGES
DISCUSS
COMMUNICATE
PRIORITIZE
REACH CONSENSUS
MAKE RECOMMENDATIONS
SET RATES
REDO
BUDGETS
9/15/2003
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NPTF Process (Continued)
■ Summer focus groups helped
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9/15/2003
Reaffirm process and principles
Update budget assumptions
Identify issues and concerns
Provide good operational feedback
Craft agenda for the Fall task force
Focus on need for more strategic discussions
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NPTF Process (Continued)
■ If no objections, operational feedback will be
addressed with Six Schools as a subcommittee.
■ Over billing for ports / “ghost ports”
■ High-cost of small wireless installations and ongoing
charges
■ Confusing intake process for installations
■ Prodesk/N&T NOC coordination
■ Confusing web (forms, outdated files)
9/15/2003
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NPTF Principles
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Customers and ISC work as partners when making
decisions.
Alignment with academic, research and business
strategies of the University.
Network is key to many other investments across Penn.
Be a leader, not a follower. Decisions based on
identifying competitive advantage over our peers.
Model flexible enough to accommodate for changing
technologies.
Model encourages retirement of legacy services and
systems.
9/15/2003
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NPTF Principles (Continued)
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Use continuous process improvement approach to
seek maximum cost-effectiveness and high degree of
customer satisfaction.
Model should be rational from both a client and ISC
perspective and be measurable in terms meaningful
to client.
Model must be structured so that increasing demands
that are fueled by rising service delivery requirements
and expectations can be met. (Demand-based)
Keep funding model simple. (Currently, IP addresses
are used as billing metric for Central Service Fee.)
9/15/2003
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NPTF Principles (Continued)
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All operating expenses (business continuity,
redundancy, planning, support, security) must be
included in model.
Make costs visible for Network, Telecommunications
and Video Services.
Identify tradeoffs.
Clarify expectations (SLAs).
Encourage standards and best practices (NPC).
Eliminate, reduce, or at least be aware of crosssubsidies.
9/15/2003
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Budget Assumptions
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Security concerns are a top priority as various viruses,
worms, etc. have reduced Penn’s productivity levels.
These concerns will constitute a significant portion of
the Fall NPTF discussions.
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.
9/15/2003
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Budget Assumptions (Continued)
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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.
FY2004-09 budget assumes Next Generation PennNet
project averages $700k, down from original $837k/year.
NGP sources of funding include the Telecommunications
surplus and the CSF as the allocated monies are phased
out.
9/15/2003
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Budget Assumptions (Continued)
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There will be no rate increases for existing services
for Telecommunications and in FY ’04 and ’05.
For FY2005 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.
N&T will run a fiscally self-sufficient GigaPoP (MAGPI)
and break even in FY ’04 and beyond.
9/15/2003
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Budget Assumptions (Continued)
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The CSF will subsidize approximately 800 wired, public
lab connections that have computers attached in
FY2004. TBD for FY2005.
The growth rate in IP addresses from the
schools/centers is projected to increase by 1800 per
year from FY2004-09.
In FY2004, the IP address growth projection is 800, as
SOM and others do “clean-up”.
ISC managed wallplates projected growth at 1800 new
per year.
9/15/2003
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Budget Assumptions (Continued)
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To retain and recruit appropriate N&T IT staff, 4%
compensation has been budgeted to include annual
performance increases, equity increases, bonuses,
promotions and reclassifications from FY2004 - 09.
In FY2004 a 54.2% overhead rate was calculated to
cover costs of benefits, rent, training, computers,
telephones, etc. TBD for FY2005.
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 $22.5M in
FY ’04 to $24.2M in FY ’09.
9/15/2003
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ISC N&T FY 2004-09 Projected
Revenue (All Sources)
DIRECT CHARGES
TELECOMMUNICATIONS
CENTRAL SERVICE FEES
NETWORK INSTALLATIONS
ISC MAINTAINED WALLPLATES
EMAIL, WEB HOSTING, VIDEO
MAGPI SERVICES
SUBTOTAL DIRECT CHARGES
FY'04 Budget
$ 10,200,000
$ 4,680,000
$ 2,000,000
$ 2,570,000
$ 550,000
$ 900,000
$ 20,900,000
ALLOCATED COSTS
NEXT GENERATION PENNNET
NETWORK ENG. AND SERVICES
SUBTOTAL ALLOCATED COSTS
$ 337,000 $
$ 1,054,000 $
$ 1,391,000 $
337,000 $
591,000 $
928,000 $
337,000 $
128,000 $
465,000 $
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GENERAL FEE
PENN VIDEO NETWORK
SUBTOTAL GENERAL FEE
$
$
578,000 $
578,000 $
578,000 $
578,000 $
578,000 $
578,000 $
TOTAL INCOME
TOTAL EXPENSE
$ 22,869,000 $ 22,916,000 $ 23,053,000 $ 23,208,000 $ 23,868,000 $ 24,408,000
$ 22,524,000 $ 23,060,000 $ 23,102,000 $ 23,310,000 $ 23,741,000 $ 24,240,000
Cumulative (Surplus) / Deficit
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$ 144,000 $
*Includes FY2003 deficit of $345k
9/15/2003
FY'05 Budget
$ 10,100,000
$ 5,040,000
$ 2,000,000
$ 2,780,000
$ 590,000
$ 900,000
$ 21,410,000
578,000 $
578,000 $
FY'06 Budget
$ 10,000,000
$ 5,420,000
$ 2,000,000
$ 3,050,000
$ 640,000
$ 900,000
$ 22,010,000
FY'07 Budget
$ 9,900,000
$ 5,820,000
$ 2,000,000
$ 3,220,000
$ 690,000
$ 1,000,000
$ 22,630,000
193,000 $
FY'08 Budget
$ 9,800,000
$ 6,240,000
$ 2,000,000
$ 3,500,000
$ 750,000
$ 1,000,000
$ 23,290,000
FY'09 Budget
$ 9,700,000
$ 6,680,000
$ 2,000,000
$ 3,640,000
$
810,000
$ 1,000,000
$ 23,830,000
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295,000 $
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578,000 $
578,000 $
168,000 $
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578,000
578,000
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Projected Telecommunications
Revenue (FY2004)
Service
Equipment/lines
Voicemail
Allocation
Installation
Usage (LD/local)
Miscellaneous
Total
9/15/2003
Admin
$ 3,760,000
$ 795,000
$ 1,345,000
$ 800,000
$ 1,810,000
$ 163,000
$ 8,673,000
Student
Total
$ 615,000 $ 4,375,000
$ 25,000 $ 820,000
$ 1,345,000
$ 132,000 $ 932,000
$ 720,000 $ 2,530,000
$ 35,000 $ 198,000
$ 1,527,000 $ 10,200,000
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Fall Challenges
■ Security
■ There are many threats to the network and data security
from viruses, worms, etc.
■ This has resulted in a loss of productivity for Penn.
■ A host of “services” may need to be developed and deployed
including VPNs, firewalls, intrusion-detection, virus
protection, patch management, etc.
■ We must take every opportunity to educate IT and senior
administrators in search of solutions for these most pressing
problems.
9/15/2003
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Fall Challenges (Continued)
■ Telecommunications/Infrastructure
■ After the contract expires in July 2005, Telecommunications
services costs from Verizon may increase.
■ Aging Telecommunications and Video infrastructure.
■ Aging Telecommunications equipment.
■ With the continued financial shake-up in
Telecommunications, we may see a decrease in competition
and therefore higher rates.
■ Moving towards VoIP may help, but a serious investment is
necessary to upgrade Penn to new infrastructure and
equipment.
9/15/2003
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Strategies
■ Examine Security Needs
■ Take realistic look at cost of productivity loss given
current threats.
■ Create new revenue
■ Deploy new services as needed and as opportunities
arise. (Cellular, VoIP, digital movies, etc.)
■ Rollout tiered network connectivity as soon as it is
ready
■ Revisit Central Services List
■ Slow down Next Generation PennNet
■ Decrease redundancy
■ Decrease services
9/15/2003
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Strategies (Continued)
■ Continue to find operating efficiencies
■ Lower vendor expenses
■ Eliminate staff and contractors
■ Charge for unregistered IP addresses, private subnets, fiber
circuits, domain names, etc.
■ Complete full audits for all services and charge out more
accurately.
9/15/2003
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FY2004 Projected CSF Expenses
External
CSF BUNDLE OF SERVICES
INFRASTRUCTURE UPGRADES (BE,ROUTERS)
INTERNET & BANDWIDTH MANAGEMENT
INTERNET2
NOC/NETWORK MANAGEMENT/EXT HOURS
FIBER AND CABLE MANAGEMENT
WWW
INFRASTRUCTURE SOFTWARE SERVICES
R&D
NETNEWS
MAIL RELAY, LISTSERV, DIRECTORY
NETWORK SECURITY INCIDENT RESPONSE
CENTRALIZED WIRELESS AUTHENTICATION
PENN COMMUNITY/SECURITY TOOLS
$
$ 1,000,000
$ 197,568
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$ 92,700
Computer
HW & OS
Software
Direct
& Lic/Maint staff
$ 878,000 $
$ 100,000 $
$ 50,000 $
$ 78,250 $
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$ 40,000 $
$ 110,000 $
$ 90,000 $
$ 40,000 $
$ 25,000 $
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$
$ 25,000 $
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DIFFERENTIAL BILLING DEVELOPMENT
$ 1,290,268 $ 1,436,250 $
TOTAL
FY2004 PROJECTED AVG IP ADDRESSES
FY2004 CSF Rate
9/15/2003
99,300
41,500
15,000
8,645
100,000
27,000
11,000
9,000
18,500
4,500
3,750
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505,053
259,673
182,055
388,526
135,334
36,094
20,000
Subtotal
$ 1,482,353
$ 1,401,173
$ 444,623
$ 475,421
$ 235,334
$ 67,000
$ 121,000
$ 99,000
$ 58,500
$ 29,500
$ 36,094
$ 48,750
$ 92,700
$ 50,000 $ 50,000
338,195 $ 1,576,735 $ 4,641,448
38,226
10.12
% Total
31.9%
30.2%
9.6%
10.2%
5.1%
1.4%
2.6%
2.1%
1.3%
0.6%
0.8%
1.1%
2.0%
1.1%
100%
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FY ’02 vs. FY ’03 School N&T
Expense Comparison
Annenberg School
Dental Medicine
GSE
GSFA
Law
Medicine
Nursing
SAS
SEAS
Social Work
Veterinary Medicine
Wharton
Total
9/15/2003
Installs
3,097
23,135
33,673
7,538
37,734
270,004
8,006
153,981
141,790
1,644
51,506
578,476
1,310,585
E-mail IP Addresses Outlets Total FY 03 Total FY 02 Difference % Diff
0
6,443
7,756
17,295
12,025
5,271 44%
21,672
85,768 43,022 173,597 172,277
1,320 1%
20,356
67,151 52,527 173,707 174,122
-414 0%
20,809
65,493 51,936 145,776 141,566
4,210 3%
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60,957 68,969 167,687
99,877
67,810 68%
127,299
641,011 341,106 1,379,419 1,297,626
81,793 6%
140
38,950 35,393
82,489
85,209
-2,719 -3%
770
483,553 89,936 728,240 758,280
-30,041 -4%
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255,867
3,869 401,554 323,058
78,496 24%
28
14,237
9,051
24,961
32,959
-7,999 -24%
364
149,618 100,653 302,141 305,242
-3,101 -1%
0
797,662 314,966 1,691,105 741,790 949,315 128%
191,494
2,666,709 1,119,184 5,287,972 4,144,031 1,143,941 28%
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Operational Discussions
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Review CSF bundle of
services
Internet
Public lab subsidy
Internet2
Building/backbone
upgrades
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Voice services (cellular,
VoIP, etc.)
Routing core upgrades
Next Generation
PennNet (building
redundancy)
Wireless authentication
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Strategic NPTF Fall Challenges/Topics
■ Security (VPNs, firewalls, intrusion-detection, virus
protection, patch management)
■ On-line directory operational funding
■ Authorization
■ Wireless authentication in CSF?
■ Wired authentication
■ More public wireless – how to fund?
■ Public lab IP subsidy
■ Time to phase out and swap for wireless IP subsidy?
■ Tiered network connectivity options possible/necessary
for FY ’05?
9/15/2003
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Future Meetings
9/29
10/6
10/20?
11/3
11/17
12/1
9/15/2003
Security Discussions (Part I)
Operational & financial discussions
Security discussions (Part II)
Other strategic discussions
“Voting” / preliminary rate setting
State of the Union
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