Information Technology UCSD Funding Models

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					Information Technology
    UCSD Funding Models


        October 23, 2007

               Blair Stephenson
      University of California, San Diego
           Campus Budget Office
                (858) 534-6590

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Campus Budget Office



                                  IT at UCSD
   •   ACS - Academic Computing Services
        – Provides services to support the computing needs of students and the UCSD community.

   •   ACT - Administrative Computing and Telecommunications
        – Develops and supports the core UCSD administrative computing and telecommunication
          systems.

   •   SDSC - San Diego Supercomputer
        – A national laboratory for computational science and engineering
        – Mission is to develop and apply high-performance information technologies for science and
          society
        – Funded primarily by the National Science Foundation Cyberinfrastructure grant.

   •   Calit2 - California Institutes for Telecommunications and Information Technology.
        – An experiment in inventing the collaborative research environment for the digital future.
        – One of four institutes (UCSD partners with UCI).

   •   Hospital - supports their own separate telecommunications.


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Campus Budget Office



                                                ACS
                                     Academic Computing Services




                                                       Computer       Instructional
        ACS Help          Account                       Repair,           Web          Software
                                          Business           &
          Desk            Services         Office                     Development     Distribution
                                                        Desktop
                                                        Support          Center




      ACS: supports the computing needs of the UCSD community, especially students &
           faculty.
              - Student accounts, printing accounts for on campus labs, faculty websites, on-campus
              computer repair, software distribution, and network installation services.
              - Receives mostly institutional funding, but also some recharge funding
              (fee-for-service) for technicians’ services.

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Campus Budget Office



                                              ACT
                                             ACT



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                          Administrative    Information       Generation
                           Computing          Systems         Network &
                                                          Telecommunications




                                                               Network
                                                              Operations




        ACT: Core administrative computing and telecommunication systems.
           - Blink, Triton Link, MyServices, the Link family, IFIS, ISIS, PPS, the campus telephone
           system, the campus network, electronic mail, security, and more.
           - Receives permanent and temporary institutional funding, Vice Chancellor
           Assessments, other telecommunication recharges (i.e. voicemail, international long
           distance) and funding from flat monthly Communication User (CU) fees.


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Campus Budget Office



                       Administrative Computing
                                                                                ACT




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                                                              Administrative   Information
                                                                                             Generation
                                                               Computing         Systems
                                                                                              Network

                   •    Core Systems on Campus

                         – Administration Office

                         – Enterprise Web Application Development (EDWAD)
                         – Campus Integrated Systems
                         – Portal Services
                         – Data Warehouse

                   •    Funded by Permanent & Temporary funding




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Campus Budget Office



                       Information Systems (IS)
                                                                                      ACT




                                                                                                     Next
                                                                    Administrative   Information
                                                                                                   Generation
                                                                     Computing         Systems
                                                                                                    Network

     • The data center of UCSD
     • Receives permanent funding
     • Requires additional funding to sustain growth, and improve system
       capacity for the three components of campus computing:
           – Payroll Personnel System (PPS): contains payroll and personnel information
             for all University employees.
           – Integrated Financial Information System (IFIS): contains integrated processes
             and applications that support the administration of UCSD's financial data
             (accounting, budget and staffing data, purchasing online, travel).
           – Integrated Student Information System (ISIS): contains the processes and
             applications that support students' needs and the maintenance of records
             (academic records, admissions, course schedules, facilities schedule, housing
             applications).


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Campus Budget Office



            Information System Funding Plan
                                                                              ACT



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                                                           Administrative   Information
                                                                                          Generation
                                                            Computing         Systems
                                                                                           Network




      • IS is funded by the permanent budget & VC Assessments.
            – Total base budget is $6 million
      • An IS upgrade plan consists of three computing upgrades
        from 2000/01 to 2007/08
            – Total projected cost: $11.9M over 8 years.
      • The Vice Chancellor-Business Affairs contributed $1.5
        million, leaving $10.4 million to be funded
      • The assessment model is designed to allot the costs
        proportionately to the degree each unit benefits.


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Campus Budget Office


                                  Information Systems                                                         ACT


                                             Assessment Matrix
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                                                                                           Administrative   Information
                                                                                                                          Generation
                                                                                            Computing         Systems
                                               PPS        IFIS       ISIS                                                  Network

                                               2.0%      44.8%      53.2%

                                            Assessment Assessment Assessment       Weighted
                                            Model for Model for Model for
                Unit                           PPS         IFIS       ISIS         Pro-rata %
                Chancellor's Orgs             0.08%       0.18%                      0.08%
                General Campus (AA)           9.58%      18.96%     34.85%          27.22%
                Health Sciences               16.57%     26.24%      2.30%          13.32%
                Marine Sciences               2.08%       5.87%      0.35%           2.86%
                Libraries                     1.08%       1.55%                      0.72%
                Hospitals & Clinics           33.58%      5.54%                      3.16%
                Academic Senate               0.01%       0.04%                      0.02%
                Student Affairs               3.78%       5.31%     37.50%          22.39%
                Business Affairs              7.67%       9.89%                      4.59%
                Resource Mgt & Plan           0.16%       0.77%                      0.35%
                External Relations (DUR)      0.41%       0.66%                      0.30%
                Campuswide                    25.00%     25.00%     25.00%          25.00%

            The system utilization statistics of the PPS, IFIS, & ISIS components are used for weighting the
            individual component pro-rata bases:
                          Fiscal Year
                           2003/04            13.3%      38.3%      48.5%
                           2004/05            13.1%      36.8%      50.1%
                           2005/06            11.5%      37.8%      50.7%
                           2006/07             1.8%      42.6%      55.6%
                           2007/08             2.0%      44.8%      53.2%



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Campus Budget Office



             Next Generation Network (NGN)
                                                                                                        ACT




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    • An enhanced data and voice network
                                                                                 Administrative       Information
                                                                                                                    Generation
                                                                                  Computing             Systems
                                                                                                                     Network




    • Provides enhanced communication services and
      technology, including:
         – Faster data connections and Internet bandwidth
         – Expanded help desk services
         – Better network security                   Network Growth Statistics


         – Increased network services                  90000
                                                       80000
                                                       70000
         – Resources for network                       60000
                                                       50000
                                                                                                  Phone lines
                                                                                                  Wireless Users
                                                       40000
           repairs and upgrades                        30000
                                                       20000
                                                                                                  IP addresses



         – Wireless equipment and services             10000
                                                           0
                                                               Pre NGN   Today
         – E-mail, active directory, and
           other network services


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Campus Budget Office



                         NGN Funding Model                                      ACT




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                                                              Administrative   Information
                                                                                             Generation
                                                               Computing         Systems
                                                                                              Network




      • Pre-NGN, program funded with:
            –   Permanent funding
            –   Surcharges on additional voice services requested
            –   Port (IP) charges
            –   VC Assessments for unfunded upgrades


      • New NGN Funding Model developed over 3.5 years with
        intensive modeling, projections, & technical financial study
            • Funded with:
               o Flat monthly Communication User fee (CU)
               o Permanent and Temporary Funding, and
               o Vice Chancellor assessments
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Campus Budget Office



                              NGN Funding Model                                          ACT



                                                                                                         Next
                                                                       Administrative   Information
                                                                                                       Generation
                                                                        Computing         Systems
                                                                                                        Network

     • Funding Model Objectives
           – Secure sufficient funding to sustain a state-of-the-art campus network
           – Minimize financial impact on departments and sponsored projects
           – Establish a stable, simple and predictable charging mechanism that recognizes
             the unification of voice and data technologies
           – Eliminate the inconsistencies and inequities of current recharge mechanism
                 o     Eliminate existing phone line charges
                 o     Eliminate existing computer network charges
                 o     Eliminate telephone feature package charges
                 o     Reduce telephone toll charges by ~ 40%
     • A number of committees formed to provide oversight and monitoring
       to NGN
           – Committees include policy, upgrade prioritization, Communication User
             policies, rebate
     • Two phases of NGN
           – NGN1: July 2001 – June 2006
           – NGN2: July 2006 – June 2011
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Campus Budget Office



                       NGN Funding Overview
                                                                              ACT



                                                                                              Next
                                                             Administrative   Information
                                                                                            Generation
                                                              Computing         Systems
                                                                                             Network




      NGN 1: July 2001 – June 2006
       – Costs were estimated at $9.9 million per year for the first 5 years
       – Communication User fees (CU) fees fixed at $60 per month for 5 years
       – Annual VC assessments of $1.4 million planned
         o Temporary funding sufficient to eliminate assessments through 2004/05
              $1 million from ICR
         o The first assessment was in 2005/06 for $300 thousand

       NGN 2: July 2006 – June 2011
        – Increased CU fees, intended to eliminate VC subsidy and ICR funding by
          the end of NGN2
        – Permanent and temporary funding sources projected at $1.6 million/year
        – Unlimited domestic long-distance service, eliminates monthly recharges


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Campus Budget Office


                                      NGN Funding Plan
                                                            (000’s)
             * All figures are in thousands
                                              NGN1 - Yr 5              NGN2 Estimated Funding Plan
                                                2005/06     2006/07    2007/08   2008/09   2009/10      2010/11

             NGN Funding
               Communication
               User Fees (1)                      $7,301     $9,911    $11,328    $12,810    $14,039    $15,002
                Permanent
                Funding
                   NGN ICR
                   Funds (2)                       1,000      1,000        800       600        400        200
                   NGN General
                   Funds                            501        501         501       501        501        501
                Temporary
                Funding
                   Other
                   Revenues                         941         80          80        80         80         80
                   VC
                   Assessment                       300           0        750       750        750        750

                Total NGN
                Funding                           10,044     11,492     13,459     14,741     15,770     16,533

             NGN Expenses                         10,692     12,679     15,793     15,061     15,274     16,067

             Current Year Balance                  ($648)   ($1,187)   ($2,334)    ($320)      $496       $466

                Prior Year
                Carryforward                       3,564      2,915      1,728       (606)      (926)      (430)

             Carryforward Balance                 $2,915     $1,728      ($606)    ($926)     ($430)       $36
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Campus Budget Office



        NGN Communication User (CU) Fee
                                                                                        ACT




     • CU Fee is levied against the department for each               Administrative
                                                                       Computing
                                                                                       Information
                                                                                         Systems
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                                                                                                     Generation
                                                                                                      Network


       employee who qualifies as a “Communication User”
           – follows payroll charges
     • CU fee rate is calculated by dividing the cost by number of users.
     • Charges for Med Center, postdoctoral fellows, graduate students,
       and off-campus customers will increase at different percentages
       from on-campus rates:
           – Off-campus rates will include costs for the communication line from
             the off-campus site back to the main campus network.
           – Postdoctoral fellow rates will increase from 33% of a standard
             Communications User to 40% in the first year, and by an additional 5%
             each succeeding year.
           – Graduate student rates, charged to the academic vice chancellors as an
             element of instruction, will be raised from 20% to 30% of a standard
             Communications User because of a significant increase in data use.


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Campus Budget Office



               NGN Communication User Fee
                                                                                            ACT




     • Contract and Grants pay proportionate
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                                                                          Administrative   Information
                                                                                                         Generation
                                                                           Computing         Systems
                                                                                                          Network




       CU Fees based on percentage of salary of User
       (grants vs. non-grants)
                 – CU paid fully or partially by grant, CU fee paid by grant
                 – If CU is paid primarily by nongrant
                 – Postdoctoral fellow rates will increase from 33% of a standard
                   Communications User to 40% in the first year, and by an additional 5%
                   each succeeding year.
                 – Graduate student rates, charged to the academic vice chancellors as an
                   element of instruction, will be raised from 20% to 30% of a standard
                   Communications User because of a significant increase in data use.
     •    GAAP was used to set the rates, and then were confirmed
          by outside auditors.

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Campus Budget Office



        NGN Communication User Fee Schedule

                           NGN1 Rates                           NGN2 Rates
                                          06/07       07/08       08/09        09/10   10/11   NGN2 Avg
         On Campus Rates      $60         $70         $74         $79          $82     $84       $78
         Off Campus           $23         $29         $31         $33          $35     $35       $33
         ResNet              $5.75        $12         $18         $19          $21     $23       $19
         Med Center           $12         $22         $23         $25          $26     $27       $25
         Grad Students        $12         $21         $22         $24          $25     $25       $23
         Labs                $16.50       $18         $19         $20          $21     $21       $20




                                                     NGN2 Real Average Costs
                                        On Campus Off Campus Med Center Labs ResNet
                                        $    90.15 $     37.98 $   28.61 $ 22.99 $ 22.99




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Campus Budget Office



        NGN Communication User (CU) Fee
                                                                                             ACT




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      We believe CU Fee Model is fair:                                     Administrative
                                                                            Computing
                                                                                            Information
                                                                                              Systems
                                                                                                          Generation
                                                                                                           Network




      • Good bridging model between individual charges and
        overall, overhead service charges
            – As the gap between voice and data grows smaller, and the need for computing
              services in most jobs becomes unavoidable, such services move more into the
              realm of being a utility service (such as electricity and water).
      • Costs are more accurately identified and assessed when
        charged by user.
      • Lowers overhead costs
            – Determining actual costs for all services is costly; model provides a very close
              approximation without overhead of actual bill



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Campus Budget Office



                                Questions?


                       For any question regarding ACT:

                               Sheryl Gerbracht
                              Budget Director, ACT
                             Phone: (858) 534-7339
                           E-mail: sgerbracht@ucsd.edu




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