1. Center for Scientific Computing Ltd. Development of Funding Models for FUNET Markus Sadeniemi CSC - Center for Scientific Computing Ltd Markus.Sadeniemi@csc.fi tel +358 9 4572711 fax +358 9 4572302

2. Center for Scientific Computing Ltd. FUNET Finnish University and Research Network started in 1984 international connections –EARN in 1985 –Internet (NORDUnet) in December 1988 serves –universities (20), polytechnics (25) –research organisations (25), other (10)

3. Center for Scientific Computing Ltd. CSC - Center for Scientific Computing Ltd limited company, but –100% owned by the Ministry of Education –non-profit three main services –supercomputer centre –expertise in computational science –FUNET services

4. Center for Scientific Computing Ltd. FUNET, background originally a joint university project still not a customer-provider relation –expenses openly shown to FUNET member organisations –yearly discussion of budget/fees with connected organisations

5. Center for Scientific Computing Ltd. History universities divided into three categories: big, medium, small when research institutes and polytechnics joined, more accuracy was needed –eleven categories –based on organisation size = no. of people –staff+students (non-technical divided by 2) Ministry of Education paid for all development

6. Center for Scientific Computing Ltd. Budget FUNET expenses in 1999, MEUR international connections3.1 FUNET backbone0.9 other1.2 total5.2

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9. Problem: exponential growth traffic volume grows 150% / year international line cost decreases 40% / year => 2.5 * 0.6 = 1.5 => increase in international connections 50% / year increase in national costs less increase in FUNET budget ~ 30% / year

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11. Solution to rising costs cut the cost increase –restrict traffic growth technically administratively find the money –it still costs < EUR50 / year / computer wait for a miracle –collapse of line costs

12. Center for Scientific Computing Ltd. Restricting traffic administratively –only professional usage, not for hobbies for privacy reasons enforcing is problematic technically –technical restrictions for students no international traffic? no voice/video? restricted bandwidth for students –restrict bandwidth for all (the easy way!)

13. Center for Scientific Computing Ltd. Market approach volume charging –only effective, if you can change the habits of the end user –charging universities is relatively easy –charging departments in universities difficult –charging individual students is impossible both technically and politically

14. Center for Scientific Computing Ltd. Working group high-level group appointed by Min of Edu conclusions –networking is essential –no hard restrictions, money has to be found –charging based on organisation size, connection capacity and traffic volume –endorse technical rationalisations (cache)

15. Center for Scientific Computing Ltd. Centralised funding? centralised funding if –networking still in development phase –networking is something to be endorsed user funding, if –Internet is a commodity item (like POTS) conclusion –networking still to be endorsed –Min of Edu will pay about 50% centrally

16. Center for Scientific Computing Ltd. Requirements for charging model left for CSC to decide together with users several contradictory requirements for charging –”fair” in some sense reflect true costs not in conflict with market prices same regardless of geographic location –predictable, easy to budget

17. Center for Scientific Computing Ltd. Requirements, cont. simple –understandable to funding bodies –technically simple now and in the future organisation can decide, how much to buy should endorse good networking practises must not prevent –development, new pilot applications –co-operation, free services

18. Center for Scientific Computing Ltd. Technical possibilities size of organisation (people, budget,..) traffic volume –national/international, in/out number of computers connection capacity

19. Center for Scientific Computing Ltd. New charging model keep the old fee based on organisation size price increase covered with volume charge –international traffic –direction abroad->university –previous years usage –measured during working hours (maximum increase 100%)

20. Center for Scientific Computing Ltd. Benefits predictable, known in advance volume affects the price, although slowly –encourages rational usage –discourages the use of the most expensive resource: inbound international line doesn’t affect (cheap) national traffic –OK to have national pilots doesn’t affect services given to others

21. Center for Scientific Computing Ltd. Why not... connection capacity –(predictable, easy to understand, easy to change) –would affect national traffic –might end in having two networks one for international connections bilateral national connections between universities

22. Center for Scientific Computing Ltd. Why not... number of computers –technically DNS count –would discourage registering –machines behind firewalls not seen national traffic –not important –nuisance to count, sometimes difficult

23. Center for Scientific Computing Ltd. The End