12/1/20031 network planning task force “consensus building: preliminary rate setting”

12/1/2003 1

Network Planning Task Force

“Consensus Building: Preliminary Rate Setting”

12/1/2003 2

Active Task Force Members http://www.upenn.edu/computing/group/nptf/

■ Mary Alice Annecharico / Rod MacNeil, SOM

■ Mark Aseltine* / Mike Lazenka, ISC■ Robin Beck, ISC■ Doug Berger / Manuel Pena, Housing

& Conference Services■ Chris Bradie / *Dave Carroll,

Business Services■ Chris Field, GPSA (student)■ Cathy DiBonaventura, School of

Design*■ Geoff Filinuk, ISC■ Bonnie Gibson, Office of Provost■ Roy Heinz / John Keane, Library■ Robert Helfman, Budget Mgmt.

Analysis■ John Irwin, GSE■ Marilyn Jost, ISC■ Carol Katzman, Vet School

■ Deke Kassabian / Melissa Muth, ISC■ James Kaylor / CCEB*■ Dan Margolis, SEAS* (student)■ Chris Massicotte, Audit & Compliance■ Kayann McDonnell, Law■ Donna Milici, Nursing■ Dave Millar, ISC■ Michael Palladino, ISC (Chair)■ Dominic A. Pasqualino / Audit &

Compliance*■ David Seidell, Wharton*■ Dan Shapiro, Dental■ Mary Spada, VPUL■ Marilyn Spicer, College Houses*■ Steve Stines / Jeff Linso, Div. of

Finance ■ Ira Winston / Helen Anderson, SEAS,

SAS, School of Design

*New FY ‘04

12/1/2003 3

NPTF FY 2004 MeetingsSummer9/159/2910/811/311/1712/112/15

Focus group sessionsSetting the stageSecurity discussions (Part I)Security discussions (Part II)Operational briefing/baseline activitiesStrategic discussionsConsensus building/preliminary rate

settingState of the Union

12/1/2003 4

Last NPTF Meeting■ Date

■ 12/15 - State of the Union■ Time

■ 1:30 - 3:00 PM■ Place

■ Logan Hall, Terrace Room■ Attendees

■ NPTF■ IT Roundtable■ SUG

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Today’s Agenda■ Discuss revised assumptions■ Share cost-cutting measures■ Show N&T 6-year cash flow■ Show draft FY ‘05 rates■ Discussions and voting on new initiatives■ Preliminary rate setting

12/1/2003 6

Budget Assumptions■ Security concerns are a top priority as various

viruses, worms, etc. have reduced Penn’s productivity levels. These concerns have constituted 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.

12/1/2003 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.

■ FY2005-09 budget assumes Next Generation PennNet project averages $590k/year, down from original $837k/year. Funding source is Telecommunications surplus.

12/1/2003 8

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

and Video services in ’05, except PVN. www.net.isc.upenn.edu/rates

■ 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. Revenue and expense could approach $1M for FY’04.

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■ The CSF will subsidize approximately 850 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 1200 per year from FY2004-09.

■ ISC managed wallplates projected growth at 1200 new per year.

12/1/2003 10

Subsidized IP Addresses

SCHOOL/CENTER TYPE NUMBERSAS PUBLIC 114NURSING PUBLIC 33SEAS PUBLIC 118SCHOOL OF DESIGN PUBLIC 4MEDICINE PUBLIC 1LIBRARY PUBLIC 180COLLEGE HOUSES/ACADEMIC SRVCS PUBLIC 245ISC CENTRAL POOL CLASSROOM 129TOTAL 824

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■ 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 FY2004 a 54.2% overhead rate was projected to cover costs of benefits, rent, training, computers, telephones, etc. Our FY’05 overhead rate is 53% 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 $22M in FY ’02 to only $23.2M in FY ’09.

12/1/2003 12

N&T Overhead Cost Breakdown FY2005

FY'05 % of OHRent 395,000$ 7.1%Travel/Conf fee/training 245,000$ 4.4%Computer equipment/supplies 135,000$ 2.4%Furniture/Facilites/Misc 55,000$ 1.0%Office supplies/Books/subscriptions 36,000$ 0.6%Copying/printing/mail services 65,000$ 1.2%Cell phones/pagers 40,000$ 0.7%Telephone/PennNet charges 75,000$ 1.4%Remote Access 25,000$ 0.5%Misc. Expenses 36,500$ 0.7% Expense Subtotal 1,107,500$ 20.0%Total Salary 5,540,000$ Employee Benefit Rate 33.0%

12/1/2003 13

FY’05 N&T Cost-Cutting Measures■ Lowering yearly NGP budget in FY ‘05-09 to

$590k, down from $837k/year.■ 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.

12/1/2003 14

Projected N&T 6-Year Cash Flow

DIRECT CHARGES FY'04 Budget FY'05 Budget FY'06 Budget FY'07 Budget FY'08 Budget FY'09 Budget TELECOMMUNICATIONS 10,200,000$ 10,080,000$ 10,080,000$ 10,080,000$ 10,080,000$ 10,080,000$ CENTRAL SERVICE FEES 4,680,000$ 4,975,000$ 5,275,000$ 5,590,000$ 5,920,000$ 6,270,000$ NETWORK INSTALLATIONS/PROJECTS 1,200,000$ 1,200,000$ 1,200,000$ 1,200,000$ 1,200,000$ 1,200,000$ WALLPLATE CONNECTIONS 2,640,000$ 2,820,000$ 2,940,000$ 3,080,000$ 3,220,000$ 3,340,000$ EMAIL, WEB HOSTING, VIDEO 500,000$ 550,000$ 600,000$ 650,000$ 700,000$ 750,000$ MAGPI SERVICES 900,000$ 1,000,000$ 1,100,000$ 1,100,000$ 1,100,000$ 1,100,000$ SUBTOTAL DIRECT CHARGES 20,120,000$ 20,625,000$ 21,195,000$ 21,700,000$ 22,220,000$ 22,740,000$

ALLOCATED COSTS NEXT GENERATION PENNNET 337,000$ 337,000$ -$ -$ -$ -$ NETWORK ENGINEERING/SERVICES 1,054,000$ 591,000$ 465,000$ -$ -$ -$ INTERNET2 -$ -$ -$ -$ -$ -$ SUBTOTAL ALLOCATED COSTS 1,391,000$ 928,000$ 465,000$ -$ -$ -$

GENERAL FEE PENN VIDEO NETWORK 578,000$ 590,000$ 601,000$ 613,000$ 625,000$ 638,000$ SUBTOTAL GENERAL FEE 578,000$ 590,000$ 601,000$ 613,000$ 625,000$ 638,000$

TOTAL INCOME 22,089,000$ 22,143,000$ 22,261,000$ 22,313,000$ 22,845,000$ 23,378,000$ TOTAL EXPENSE 21,734,000$ 22,129,000$ 22,233,000$ 22,445,000$ 22,880,000$ 23,263,000$

Cumulative (Surplus) / Deficit (10,000)$ (24,000)$ (52,000)$ 80,000$ 115,000$ -$

*Includes FY2003 deficit of $345k

12/1/2003 15

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$

12/1/2003 16

FY2004 Port Rental Expense Breakdown (10baseT)

Elements Costs (Annual)

Staff including overhead $155,000

Equipment $1,000,000

TOTAL $1,155,000

Number Ports 32,878 ÷ 12 month

Monthly Rate $2.93 per port

12/1/2003 17

FY2005 Port Rental Expense Breakdown (10baseT)


Staff including overhead $120,000

Equipment $1,100,000

TOTAL $1,220,000



12/1/2003 18

FY2004 Connection Maintenance Expense Breakdown (10baseT)


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

$633,000$343,000 (54.2% overhead) $976,000

Hardware/Software/Tools/Maintenance Contracts

$259,000

TOTAL $1,235,000



12/1/2003 19

FY2005 Connection Maintenance Expense Breakdown (10baseT)


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

1,100,810

Hardware/Software/Tools/Maintenance Contracts

$175,000

TOTAL $1,275,810



12/1/2003 20

FY2004 Projected CSF Expenses(Fall, 2002 data)

External Computer H/S, OS N&T Staff Subtotal % TotalCSF BUNDLE OF SERVICES Lic, Main CAMPUS BACKBONE INFRASTRUCTURE -$ 977,300$ 505,053$ 1,482,353$ 32.0%INTERNET/BAND. MANG./DIF BILING DEV 1,000,000$ 141,500$ 309,673$ 1,451,173$ 31.3%INTERNET2 197,568$ 65,000$ 182,055$ 444,623$ 9.6%NOC/NETWORK MANAGEMENT/EXT HOURS -$ 86,895$ 388,526$ 475,421$ 10.2%FIBER AND CABLE MANAGEMENT -$ 100,000$ 135,334$ 235,334$ 5.1%WWW -$ 67,000$ -$ 67,000$ 1.4%INFRASTRUCTURE SOFTWARE SERVICES -$ 121,000$ -$ 121,000$ 2.6%R&D -$ 99,000$ -$ 99,000$ 2.1%NETNEWS -$ 58,500$ -$ 58,500$ 1.3%MAIL RELAY, LISTSERV, DIRECTORY -$ 29,500$ -$ 29,500$ 0.6%NETWORK SECURITY INCIDENT RESPONSE -$ -$ 36,094$ 36,094$ 0.8%CENTRALIZED WIRELESS AUTHENTICATION -$ 28,750$ 20,000$ 48,750$ 1.1%PENN COMMUNITY/SECURITY TOOLS 90,000$ -$ 90,000$ 1.9%TOTAL 1,287,568$ 1,774,445$ 1,576,735$ 4,638,748$ 100.0%FY2004 PROJECTED AVG IP ADDRESSES 38,210 FY2004 CSF Rate 10.12

12/1/2003 21

FY2005 Projected CSF Baseline Expenses (Fall, 2003 data)

CSF BUNDLE OF SERVICES External Computer H/S, OS N&T Staff Total Increase Main, Licenses (Decrease)

CAMPUS BACKBONE INFRASTRUCTURE 972,500$ 520,106$ 1,492,606$ 10,253$ INTERNET/ BAND. MANG./ DIF BILING DEV 900,000$ 280,000$ 211,592$ 1,391,592$ (59,581)$ INTERNET2 179,897$ 50,000$ 118,786$ 348,683$ (95,940)$ NOC/NETWORK MANAGEMENT/EXT HOURS -$ 57,910$ 470,207$ 528,117$ 52,696$ FIBER AND CABLE MANAGEMENT -$ 97,910$ 152,302$ 250,212$ 14,878$ WWW -$ 71,530$ 175,000$ 246,530$ 179,530$ INFRASTRUCTURE SOFTWARE SERVICES -$ 91,795$ 137,442$ 229,237$ 108,237$ R&D -$ 99,000$ -$ 99,000$ -$ NETNEWS -$ 36,119$ -$ 36,119$ (22,381)$ MAIL RELAY, LISTSERV, DIRECTORY -$ 46,777$ 120,319$ 167,096$ 137,596$ NETWORK SECURITY INCIDENT RESPONSE -$ 36,094$ 36,094$ -$ CENTRALIZED WIRELESS AUTHENTICATION -$ 40,000$ 40,000$ 80,000$ 31,250$ PENN COMMUNITY/SECURITY TOOLS 92,700$ 92,700$ 2,700$ TOTAL 1,172,597$ 1,843,541$ 1,981,848$ 4,997,986$ 359,238$ FY2005 PROJECTED AVG IP ADDRESSES 40,021$ FY2005 CSF Rate 10.41$ FY2005 CSF Rate-No Public Lab Subsidy (75% pay) 10.25$ FY2005 CSF Rate-Public Lab & Wireless Subsidy (400 wireless) 10.51$

12/1/2003 22

Security Strategy for FY ‘05

■ Firewalls, VPNs, and intrusion-detection are tactical solutions, of all which have an important role to play in Penn Information Security.

■ The single most effective way to deploy resources against our information security problems is in support of mastering host security.

■ In support of that strategy, we plan the following activities:

■ Run opt-in SUS server, seeking $28k to support students.■ Do not seek funds ($150k - $200k) for port traces and

disconnects associated with patch management policy.

12/1/2003 23

Security Strategy (Continued)■ Provide proactive, high quality LSP and end-user

security tools and documentation supported by an ongoing campus-wide training and awareness program:

■ Web-based self-scanning/reporting■ End user-friendly security technical information for all

supported operating systems.■ 2-3 half-day or full-day LSP training sessions annually■ Ongoing end user awareness campaign supported by

media ads, articles, management communications, incentives and other campus-wide communications.

12/1/2003 24

Technology Support Services■ Challenge: Balancing increasing demand for

services with the need to provide cost effective services. Funding additional staffing to maintain Provider Support Services at the desired levels given increasing demand.

■ No positions added since 1997

■ Drivers■ Anti-Virus and Security■ New Services (PennKey, Wireless, etc.)■ Increasing Demand

12/1/2003 25

Technology Support Services

■ Drivers

IT Staff on Campus

450

500

550

600

650

700

750

FY2000 FY2001 FY2002 FY2003

Year

Nu

mb

er o

f IT

Sta

ff

IT Staff

12/1/2003 26


■ Drivers

Provider Desk Volume

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

FY2000 FY2001 FY2002 FY2003

Year

Nu

mbe

r o

f C

ont

acts

Provider Desk

12/1/2003 27


■ Issue: In order to provide acceptable response and follow up on the Provider Desk we propose increased staffing for that service (currently one staff member per shift).

■ We recognize the challenge to hold costs down and we have already shifted resources from primary to second-tier support services to the extent possible.

■ Still, in order to provide the desired level of service we need to identify an ongoing funding source for incremental staffing.

12/1/2003 28


2nd-Tier Support for Patch Management includes:

■ Communication and Documentation to/for IT Staff.

■ ProDesk support for LSPs with questions/problems.

■ ProCD for critical security updates.

12/1/2003 29

FY2005 Projected CSF Baseline + Security Expenses (Fall, 2003 data)

CSF BUNDLE OF SERVICES External Computer H/S, OS N&T Staff Total Increase Main, Licenses (Decrease)

CAMPUS BACKBONE INFRASTRUCTURE 972,500$ 520,106$ 1,492,606$ 10,253$ INTERNET/ BAND. MANG./ DIF BILING DEV 900,000$ 280,000$ 211,592$ 1,391,592$ (59,581)$ INTERNET2 179,897$ 50,000$ 118,786$ 348,683$ (95,940)$ NOC/NETWORK MANAGEMENT/EXT HOURS -$ 57,910$ 470,207$ 528,117$ 52,696$ FIBER AND CABLE MANAGEMENT -$ 97,910$ 152,302$ 250,212$ 14,878$ WWW -$ 71,530$ 175,000$ 246,530$ 179,530$ INFRASTRUCTURE SOFTWARE SERVICES -$ 91,795$ 137,442$ 229,237$ 108,237$ R&D -$ 99,000$ -$ 99,000$ -$ NETNEWS -$ 36,119$ -$ 36,119$ (22,381)$ MAIL RELAY, LISTSERV, DIRECTORY -$ 46,777$ 120,319$ 167,096$ 137,596$ NETWORK SECURITY INCIDENT RESPONSE -$ 36,094$ 36,094$ -$ CENTRALIZED WIRELESS AUTHENTICATION -$ 40,000$ 40,000$ 80,000$ 31,250$ PENN COMMUNITY/SECURITY TOOLS 92,700$ 92,700$ 2,700$ TOTAL 1,172,597$ 1,843,541$ 1,981,848$ 4,997,986$ 359,238$ FY2005 PROJECTED AVG IP ADDRESSES 40,021$ FY2005 CSF Rate 10.41$ 2.76%FY2005 CSF Rate-No Public Lab Subsidy (75% pay) 10.25$ 1.27%FY2005 CSF Rate-Public Lab & Wireless Subsidy (400 wireless) 10.51$ 3.71%

Building Wireless AUTH. in CSF 50,000$ 0.104$ *Proactive security, training, education, documentation 100,000$ 0.208$ *Intrusion detection pilot 40,000$ 0.083$ *TSS Wireless support 20,000$ 0.042$

0.437$ *Seeking 50% of this funding from students. Effort may not be successful. 10.95$ 7.56%*Seeking 50% of this funding from students. If successful. 10.73$ 5.67%

12/1/2003 30

Next Steps■ NPTF makes rate recommendations.■ Finalize N&T FY ‘04 - FY ‘09 budgets.■ Rate recommendations presented to Provost.■ Final FY ‘05 rates established.■ Rates published in Almanac.

12/1/20031 network planning task force “consensus building: preliminary rate setting”

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