Information Technology NU Communication Systems Funding Models February 5, 2006

Information Technology Departments Involved Budget Office Controller’s Office Information Technology

Why New Model? Voice systems at end-of-life and support Technology and standards established Market focused on converged technologies End-user expectations New at-home pricing models

Information Technology Consultant engagement resulted in – Development of overarching principles – Creation of a “Core Services” concept – Identification of new models Library model Head-tax model NUIT and Budget Planning developed NU approach – Plan is to share with the larger NU community Planning Process

Information Technology Provide “core services” to everyone Eliminate technology islands Promote and ensure investment utilization NUIT is sole provider of core services – NUIT manages all infrastructure – NUIT owns all networking components to the jack in the wall Overarching Principles

Information Technology Combination of services that have evolved from a separate telecommunications and networking environment to a converged communications environment – support and enhance communications – facilitate University goals – are provided to all faculty, staff and students Core Services

Information Technology Included in Core Services Current services: Dialtone Voice conferencing System upgrades to the communications infrastructure Operational support Inter-campus fiber link Commodity Internet Internet 2 and Starlight Secure remote access Host-based virus protection On campus network wireless access (expanded) Current services separately billed: Voic Local calling Domestic long distance Emergency and public space telephones Basic NUTV New services: Desktop video conferencing Enterprise instant messaging Softclients for VoIP Headsets for softclients

Information Technology Future Core Services Enhanced and calendaring Network storage Campus-wide firewalls

Information Technology Telephone sets (VoIP) Telephone sets (TDM) Video camera Cellular Calling cards Departmental firewalls Home network connectivity International LD Expanded NUTV Installation charges Telephone answering service Automatic Call Distribution (ACD) telephone sets and features Non-Core (separately charged)

Information Technology Impact of Technology on Funding Models Industry trend is toward per-pipe pricing vs. per- call pricing Users pay for network access, not usage

Information Technology Two fundamental models – Library model – central funding of core services – Head-tax model – charge schools/departments for core services Under either model – Stop usage billing for core services – Continue billing for non-core services Continue charges to decentralized and self- supporting units – (e.g., Kellogg, FSM, Law, Housing, etc.) Funding Models

Information Technology Reallocate existing budgets from schools and departments to fund core services centrally At what level? – Actual spending on telecommunications and networking exceeds budgeted funds by $1.5+ million For decentralized and self-supporting units, costs of core services still allocated to them Library Model

Information Technology Allocation bases considered – Employee Salary – Employee Headcount – Employee Headcount + Student Headcount Under all bases – Projected costs = numerator – Prior year actual salary/counts = denominator – Annual/periodic charge for core services Headcounts – No partial heads – Weight to account for seasonality during the year Head-tax Models

Information Technology Based on salary expense in CUFS Implications vs. current charges – More charges to administrative units – Less charges to majority of schools Head-tax Model: Employee Salary

Information Technology Based on HRIS records Implications vs. current charges – Almost all areas charged less except FSM Head-tax Model: Employee Headcount

Information Technology Based on HRIS + SES records Student count = All registered students Implications vs. current charges – Increased charges to schools vs. other approaches Head-tax Model: Employee + Student Headcount

Information Technology Implement the Employee + Student Headcount funding model for FY2006. – Discontinue NetID charges – Discontinue usage charges for core services Continue charges to schools / departments for non- core services For decentralized and self-supporting units, continue and adjust allocations to them based on FY2006 funding model changes Recommendations