- The existing model includes a "nodebank" which grandfathered in any existing data connections when the model was created. The nodebank has resulted in a disproportionate benefit for departments that had many nodes at model inception in FY 1999–00 and an unequal burden for new departments or departments that have grown since that time. An unfortunate outcome of this model has been the increase in rogue networks in order to save a recurring connection fee.
- The blend of service types in the current model complicates cost recovery from multiple fund sources.
- There is no provision for the changing technology landscape. The current, connection-based model is predicated on an assumption that every user would need the same type of data connection. This fails to account for technology advancement. As an example, the current model does not include any recognition of wireless technologies.
- Emergency communications environment and costs have increased as a result of major events such as 9/11 and the Virginia Tech University shooting incident in 2005. Emergency communications was once funded from the income of pay phones on campus. This revenue source has declined to zero.
- The existing model requires a highly complex accounting method which has contributed to inaccurate calculations for network costs and depreciation expenses. These inaccuracies, in turn, have contributed to a structural deficit.
The current model is greatly dependent on several constrained Chancellor funds. The communication network is a critical campus resource that must be consistently maintained to current standards to meet UC Berkeley's mission of research, teaching, and public service. The environment currently includes:
- Interbuilding Communications Conduit System (ICCS)
- Wired data network (switches and routers)
- Wireless infrastructure (private and public)
- Telephony network (dial tone)
- Network security (detect and prevent)
- Emergency systems (radios, blue phones, e911, WarnMe, People Locator)
Like many common-good services, the communications network lacks a stable funding model that is not reliant on dwindling Chancellor reserves. The funding has historically been provided by a number of resources:
- ICCS (Capital: partially VCAC funded)
- Wired Data Network (approximately $2M Chancellor reserves)
- Wireless Infrastructure (approximately $1.3M unfunded)
- Telephony Network (approximately $5.6M recharge)
- Network Security (approximately $1.3M unfunded)
- Emergency Systems (approximately $660k unfunded)
Developing a new funding model
The project team, working with IST staff, began a review of the current model and identifying the objectives of a new model in fall 2007. To date, the team has applied activity-based budgeting to align costs with services, aggressively reduced operational run rate, evaluated communication models from peer institutions, and evaluated options for UC Berkeley. An advisory committee of technologists, MSOs and faculty representatives was formed to provide advice on the many options that are under consideration. The Advisory Committee developed a set of principles to guide its recommendations. The optimal model:
- Includes the full IST costs of delivering voice, data, security, and emergency communication services to the campus.
- Is in compliance with campus recharge policy.
- Is simple and scalable.
- Provides a transparent, consistent, and timely distribution of service costs.
- Facilitates a consistent/estimated billing expense for customers for planning purposes.
- Is technically and financially sustainable for at least a seven-year life cycle.
- Supports evolving technologies.
- Moves the campus toward a goal of ubiquitous network access.
- Allows departments the flexibility to control their "spend" by reducing or increasing some services.
- Accounts for a small number of compelling departmental service variations.
- Should not encourage behavior that is detrimental or counterproductive to the overall goals of the campus.
- Can be implemented in FY 2009–10.
Considerable time and effort has been invested in researching best practices at other universities and identifying options for UC Berkeley. At the time of this writing, the sponsors and project team are still identifying and evaluating details of the model. The primary characteristics and framework for the new model have been identified as follows:
- All costs for maintaining the network connectivity and network security are included in a communications network full recharge model.
- Costs for the completion of the "risers", the expansion of AirBears, and the completion of the Interbuilding Communications Conduit System (ICCS) are included in the recharge model.
- All users of the network are included in the cost allocation of the model including all students, staff, faculty, and affiliates. Anyone who uses the network more than 15 hours in a 12-month period of time will be considered a user of the system and must be affiliated with a campus department.
- Allocation is based on FTE and service level. This will be referred to as "full-service equivalent (FSE)" in the model.
- Financial support from students will be needed to implement the model.
- Voice costs will be recovered on a pay-for-service basis.
- Emergency communications will be moved to the campus functional owners and costs will be covered by central campus funding.
Implementing the new communications network model
While it is especially difficult to implement this change during tough economic times, it is imperative that the campus accurately account for the costs of maintaining a high-quality network and implement a sustainable funding model that meets the needs of the campus today and into the future. The benefits of a scalable model that accounts for changes in technology and improvements in the communications environment will enable an enhanced network for every member of the campus community.
The next steps for implementing the changes include:
- Ratify scope/service levels (May 2009)
- Develop communication plan (May 2009)
- Brief campus committees (May 2009)
- Complete impact analysis (June 2009)
- Develop and kickoff implementation plan (June 2009)
- Move emergency communications funding to functional owners (July 2009)
- Implement Communications Network Model (July 2010)
Information on the progress of the Communications Network Model project can be found at http://technology.berkeley.edu/projects/CNM/ or by contacting Peggy Huston, 643-1316.