Transcript Communications Services Strategic Initiatives

Network Funding Model
Recommendation
May 2012
Our Situation
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
12,000 IP phones
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23,500 network connections
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2,100 wireless access points (and still growing!)
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125 miles of fiber connecting all 3 campuses
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10 gig connection to Internet2
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500 meg connection to Internet
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State-of-the-Art network for higher education
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Technology.
Technology. It’s
It’s Happening
Happening Here.
Here.
Our Situation (cont.)
 Converged networking blurs distinctions between
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voice,
data,to
video,
andMaster
wireless networks
services
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 Funding models created over the past 30 years no
longer support how technology is implemented today
 Mobility technologies continue to evolve rapidly,
requiring substantial ongoing funding
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Technology.
Technology. It’s
It’s Happening
Happening Here.
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Our Challenge
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Create a sustainable network funding model to:
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Maintain &
replace
communications
infrastructure
and
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equipment on a regular basis
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• Invest in new technologies such as
mobility solutions
• Provide adequate staffing to support
the environment
• Extend and integrate off-campus networking
• Ensure affordable access to basic services for all and provide
premium services to enable world-class research and
instruction
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Technology.
Technology. It’s
It’s Happening
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Our Approach
Click
Formed
team
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
Analyzed current communications budget
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 Identified “base” communications costs
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Examined core services
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Considered trends and best practices
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Researched university funding models
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Investigated budget impact for units and schools
Technology.
Technology. It’s
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Our Findings
Communications
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budget
and base
costs
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Technology. It’s
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Our Findings (cont.)
 Core
telecomm
services
identified:title
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• Wired
and wireless
data networking
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• VoIP voice line
• Voice mail
• Basic VoIP telephone set
• Long distance services
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Technology.
Technology. It’s
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Our Findings (cont.)
 Industry trend is to move away from per-port billing
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• University Funding Models:
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‒
‒
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‒
‒
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Centrally Funded
Consumption
Headcount
Network access fee
Taxation
Per-port
Student technology fee
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Technology. It’s
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Conclusion
 Benchmark survey results
and higher
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toeducation
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research shows
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institutions
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 Advantages:
•
•
•
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Eliminates incentive to save by removing services
Simplifies administration and delivery of services
Positions funding model for long-term stability
Technology.
Technology. It’s
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Initial Recommendation
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Move to headcount
was presented
to university
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administration Spring 2012
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 Implementation required budget reallocation to balance
all general fund accounts
 With current budget climate, this model is
not feasible at this time
 IT was asked to look for alternatives
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Technology.
Technology. It’s
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Further Investigation
 Requirements:
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• Maintain base infrastructure charges
• Eliminate
removestyle
services
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 Alternative approaches, using hybrid FTE
scenarios had significant flaws
• Cumbersome tracking constraints
• Annual FTE growth < 100
 The flat fee approach, or base infrastructure
charge, proved to be a viable alternative
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Technology.
Technology. It’s
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Recommendation
 Implement flat fee funding model beginning July 2012
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voice,
voicemail,
data and title
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long distance
services become the unit/school base infrastructure charge
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• No credits for disconnect
• No recurring charges for new service
• One time cost will increase to $550
• International long distance will continue to be usage based
• Base infrastructure charge will increase annually by an
inflationary percentage
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Technology.
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Impact on Departments and Auxiliaries
 Base infrastructure charges for 2012/2013
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 Will enable more accurate budget planning
and forecasting
 Annual billing calculations take into account
the entire university’s base while looking at
expenses and inflationary increases
 New facilities will require needs analysis to determine
one-time and initial base infrastructure costs
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Technology.
Technology. It’s
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Third Party Services
 External entities will continue to be billed on a perClick
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title
style to
port
basis to
usingedit
a higher
rate structure
comparable
market service rates
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 Third party services include:
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•
Wired and wireless data
networking
•
VoIP voice line, voice mail and
long distance
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Basic VoIP telephone set
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Third Party (cont.)
 Recurring monthly costs:
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• High speed
data Ethernet
$45.61
• Voice over IP telephone service
$23.50
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• Voice mail
$ 3.00
• Wireless access point (Non-UofL bldg)
$90.00
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International long distance – usage based
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One time costs:
• Cable runs
• Voice/data activation
• In building moves
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$100.00
$150.00
$ 75.00
Technology.
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Benefits

Sustainable funding model for core
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communication
infrastructure
services
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styletechnologies
Supports
wireless
and mobile
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Provides a fair and equitable rate structure for all
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Enables improved budget planning at the department level
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Simplifies administration and service delivery
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Positions us to revisit the headcount funding model
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Technology.
Technology. It’s
It’s Happening
Happening Here.
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Next Steps
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 Vet recommendation with appropriate
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stakeholders
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 Identify and complete any necessary
changes to IT billing processes
 Develop communication plan to inform
the university community
 Continue to investigate other revenue
generating options
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Technology.
Technology. It’s
It’s Happening
Happening Here.
Here.
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Technology.
Technology. It’s
It’s Happening
Happening Here.
Here.