1. 12/1/20031 Network Planning Task Force “Consensus Building: Preliminary Rate Setting”

2. 12/1/20032 Active Task Force Members http://www.upenn.edu/computing/group/nptf/ 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

3. 12/1/20033 NPTF FY 2004 Meetings Summer 9/15 9/29 10/8 11/3 11/17 12/1 12/15 Focus group sessions Setting the stage Security discussions (Part I) Security discussions (Part II) Operational briefing/baseline activities Strategic discussions Consensus building/preliminary rate setting State of the Union

4. 12/1/20034 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

5. 12/1/20035 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

6. 12/1/20036 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.

7. 12/1/20037 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.

8. 12/1/20038 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.

9. 12/1/20039 Budget Assumptions (Continued) ■ 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.

10. 12/1/200310 Subsidized IP Addresses

11. 12/1/200311 Budget Assumptions (Continued) ■ 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. 12/1/200312 N&T Overhead Cost Breakdown FY2005

13. 12/1/200313 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.

14. 12/1/200314 Projected N&T 6-Year Cash Flow

15. 12/1/200315 Telecommunications Projected Revenue (FY2005)

16. 12/1/200316 FY2004 Port Rental Expense Breakdown (10baseT) ElementsCosts (Annual) Staff including overhead$155,000 Equipment$1,000,000 TOTAL$1,155,000 Number Ports32,878 ÷ 12 month Monthly Rate$2.93 per port

17. 12/1/200317 FY2005 Port Rental Expense Breakdown (10baseT) ElementsCosts (Annual) Staff including overhead$120,000 Equipment$1,100,000 TOTAL$1,220,000 Number Ports33,814 ÷ 12 month Monthly Rate$3.01 per port

18. 12/1/200318 FY2004 Connection Maintenance Expense Breakdown (10baseT) ElementsCosts (Annual) 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 Number Ports32,878 ÷ 12 month Monthly Rate$3.13 per port

19. 12/1/200319 FY2005 Connection Maintenance Expense Breakdown (10baseT) ElementsCosts (Annual) 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 Number Ports33,814 ÷ 12 month Monthly Rate$3.14 per port

20. 12/1/200320 FY2004 Projected CSF Expenses (Fall, 2002 data)

21. 12/1/200321 FY2005 Projected CSF Baseline Expenses (Fall, 2003 data)

22. 12/1/200322 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.

23. 12/1/200323 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.

24. 12/1/200324 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

25. 12/1/200325 Technology Support Services ■ Drivers

26. 12/1/200326 Technology Support Services ■ Drivers

27. 12/1/200327 Technology Support Services ■ 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.

28. 12/1/200328 Technology Support Services 2 nd -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.

29. 12/1/200329 FY2005 Projected CSF Baseline + Security Expenses (Fall, 2003 data)

30. 12/1/200330 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.