From: Administrative E-Memo (memofrom@Colorado.EDU)
Date: Wed Jun 15 2011 - 20:00:23 MDT
Date: Wed, 15 Jun 2011 20:00:23 -0600 (MDT) From: Administrative E-Memo <memofrom@Colorado.EDU> Subject: New Connectivity Model Recalibrated to Overall Lower Rate
TO: Boulder Campus Teaching & Research Faculty, Staff, Deans, Directors, Dept Chairs
FROM: Office of Information Technology
SENDER: Larry Levine, AVC for IT and CIO, and Steve McNally, AVC for Budget and Finance and Campus Controller
DATE: June 15, 2011
SUBJECT: New Connectivity Model Recalibrated to Overall Lower Rate
In Fiscal Year 2008, network charges were restructured, moving away from the
pay-per-port model towards a mostly common good model (Auxiliary departments
paid by headcount). This model had significant limitations:
- It lacked clarity and equity across departments.
- Additional charges existed for setting up or moving jacks, phone sets, etc.
creating a nickel-and-dimed feeling for departments to manage.
- Solely grant-funded programs were not included in the model.
Given these issues and ongoing campus concerns, a study was done by the Office
of Information Technology (formerly Information Technology Services) and the
Office of Planning, Budget and Analysis to assess the current funding model of
network and telecommunication services and its future viability. The study
revealed that telecommunication fees are priced higher than their average cost
of operation while network fees are underpriced.
Data from the study drove the following change: effective FY2012, the
telecommunication and network services charges will be combined and
recalibrated to an overall lower rate for users. In this new model, users are
defined completely on a headcount basis.
The primary reasons why the rates will be lower are because of a fund plant
balance that existed within OIT that will be leveraged, and a one-time
investment by the campus.
The OIT Budget and Finance Office and PBA are currently meeting with finance
groups across campus to explain the new model and answer any questions
regarding this change. An FAQ is included below. If you have any questions
regarding the model, you can contact Erika Smith at Erika.smith@colorado.edu or
David Chittenden at david.chittenden@colorado.edu.
FAQ:
Q: What are the additional costs?
A: There are no additional costs. Previously there were 45 separately
chargeable services that fell into six categories: Set + Line Voice Charges;
Other Voice Services; Long Distance; One-Time Installation Charges; One-Time
Move Charges; and One-Time Programming Changes. Please note this means that
domestic and international long-distance will no longer be charged; however,
individuals will still be required to enter their access code to use long
distance. The costs paid by CU to outside contractors for phone and network
jacks will be recovered from the unit requesting the work.
Q: How can you lower the rates? Where is the money coming from?
A: The primary reasons why the FY2012 connectivity rates will be less than
prior years is the calculated use of an OIT fund plant balance that can be
leveraged and the campus one-time investment of $3M.
Q: Are the rates going to rise sharply/dramatically in the coming years?
A: No, the ten-year rate projection has the monthly connectivity rate growing
steadily from $33 per month to roughly $45 per month by the fifth year and then
stabilizing.
Q: How will headcounts be determined?
A: Accountability will be provided through rate review since this connectivity
will be set-up as an internal service center and the headcounts used for the
charging algorithm will be provided annually by PBA Institutional Analysis.
Q: What about Grants and Other Fund Types? How will they be charged?
A: Grants and other fund types not identified above will continue to be
(direct) charged as applicable.
Q: Can I get GigE at no charge if I need it for my research or academic needs?
A: Fees recovered for various services performed by OIT will no longer be
charged, including "gig-e" (1 gigabit) ports and activating new jacks in
existing or new buildings. The costs paid by CU to outside contractors for
phone and network jacks will be recovered from the unit requesting the work.
The current network standard is 100 mbits (or 0.1 GigE). In approximately two
years, the campus-wide standard will be GigE. In the meantime, GigE will be
provided to those whose work would be impeded without GigE. This typically
affects those conducting research computing.
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