1. Research & Education Network Business Models
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2. Project Overview
Spring of 2007, The Quilt and MIDnet launched a collaborative effort to collect case studies of R & E network organizations
Goals of the project:
Enrich and deepen the content of the original Quilt business model review
Update the case studies of the 'SURA Optical Cookbook‘
Share the history, knowledge and experience of R&E optical network organizations with the broader R&E community.
Methodology for collecting information
Project Principles:
Carol Farnham, MIDnet
Jen Leasure, The Quilt
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3. Participants Organization State/Hdq 3ROX Pennsylvania FLR Florida FRGP
Colorado
LEARN
Texas
LONI
Louisiana
Merit, Inc.
Michigan
NCREN
North Carolina
NEREN
Connecticut
NTNC
Montana
NYSERNet
New York
OneNet
Oklahoma
OSCnet
Ohio
SoX/SLR
Georgia
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4. Summary Findings
No single business model, no single recipe for success
Mission statements are unique, but they all have similar elements:
Supporting research and education
Enabling research and education
Providing advanced network technologies and applications
Commonalities in the following program areas:
Outreach and community building
Lessons learned
Future directions
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5. Summary Findings Thirteen case studies completed
Non-profit or 501(c)(3)s make up 53%
23% are organized as a project of a university system Board
15% are consortiums under a non-profit
One is university based
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6. Summary Findings Of the 12 operational networks
Majority offer services beyond Layer 1
Majority outsource to a member organization some or all of NOC services
Half outsource remote hands to a member organization
Staffing levels ranged from 1 to 50
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7. Management/Operations
All are managed and operated by R&E organizations
Owned vs. Leased Network Assets
All have IRU’s on dark fiber
Majority own rather than lease the equipment
Staffing
Network design and geography are important factors in network operations staffing decisions
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8. Management/Operations
Sparing Policies and Maintenance Agreements
Reliability of network hardware
Just in-time inventory practices
Sparing vs. maintenance agreements
Administrative (Back Office) Functions
University system organizations
501(c)(3)
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9. Services Offerings
All active R&E networks interviewed provide transport services and all but one provide layer 2 services.
73% of organizations are also offering layer 3 services
Outreach and community building are integral to the overall success
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10. Pricing Strategies Two main funding sources: state and members
Seven expenditure categories
Program management/administration
Network operations
Access to national research and education networks
Capital investment
Equipment replacement
Opt-in services
Research and development
The majority of organizations set up each service offering as a ‘cost center’
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11. Pricing Strategies State funded Member funded
Administrative costs - membership fee or state allocation
Operations and services costs - bundled service pricing
Opt-in services priced at cost plus margin
Member funded
Administrative costs - membership fee or markup on service
Operations and services costs - tiered pricing, shared equally or cost plus standard fee-for-service
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12. Lessons Learned Outreach and community building are important
Bringing people together provides great value
Add value by providing leading-edge services that no one else can or will provide
Be an enabler for research and education
Do what is in the best interest of your members
Leverage opportunities
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13. Future Directions Expand fiber footprint Evaluate existing services
Focus on ‘last mile’
Evaluate existing services
Develop new services
Investigate peering relationships that provide cost effective solutions
Expand beyond the realm of the physical network
Research new ‘market’: K-12, libraries, health care, etc.
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14. Contact Information
Carol Farnham, MIDnet
Jen Leasure, The Quilt
Project Website:
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