CENIC Business ModelCENIC Business Model

Quilt Fiber WorkshopJune 21, 2004

Quilt Fiber WorkshopJune 21, 2004

CENIC AssociatesCENIC Associates• California Institute of Technology• Stanford University• University of Southern California• University of California System

• 10 campuses

• California State University• 24 campuses, 6 off-site center

• California Community Colleges• 107 colleges, 16 district offices• Potential of 53 more off-site centers

• California Institute of Technology• Stanford University• University of Southern California• University of California System

• 10 campuses

• California State University• 24 campuses, 6 off-site center

• California Community Colleges• 107 colleges, 16 district offices• Potential of 53 more off-site centers

CENIC NetworksCENIC Networks• CalREN/XD (eXperimental Development)• Custom per requirements

• CalREN/HPR (High Performance Research)• 10Gb backbone, serving research campuses

• CalREN/DC (Digital California)• “Production” quality backbone serves as

reliable, robust, intrastate network providing commodity peering, transit, QoS for Video over IP, etc.

• CalREN/XD (eXperimental Development)• Custom per requirements

• CalREN/HPR (High Performance Research)• 10Gb backbone, serving research campuses

• CalREN/DC (Digital California)• “Production” quality backbone serves as

reliable, robust, intrastate network providing commodity peering, transit, QoS for Video over IP, etc.

CENIC Optical NetworkCENIC Optical Network

• Private fiber IRUs, DWDM hardware provide 2.5G and 10G wavelengths

• Supports CalREN/DC, CalREN/HPR and waves for CalREN/XD

• Base costs are covered by /DC and /HPR network participants

• Private fiber IRUs, DWDM hardware provide 2.5G and 10G wavelengths

• Supports CalREN/DC, CalREN/HPR and waves for CalREN/XD

• Base costs are covered by /DC and /HPR network participants

Funding the Network(s)Funding the Network(s)

• Network costs include:• General Operations• Network Operations Center• Allocation of Optical Network• Equipment Maintenance• Equipment Replacement Allocation

• Network costs include:• General Operations• Network Operations Center• Allocation of Optical Network• Equipment Maintenance• Equipment Replacement Allocation

Equipment ReplacementEquipment Replacement

• Funds set aside each year• Amount is determined by:• Cost of current hardware/software• Life expectancy of hardware

• Replacement fund has allowed for network growth w/o increase in Associate fees!

• Funds set aside each year• Amount is determined by:• Cost of current hardware/software• Life expectancy of hardware

• Replacement fund has allowed for network growth w/o increase in Associate fees!

Multiple Cost CentersMultiple Cost Centers

• Some services are funded by “subscriber” fees• Video over IP (MCUs in core, QoS)• ISP transit• Abilene/Internet2

• Some services are funded by “subscriber” fees• Video over IP (MCUs in core, QoS)• ISP transit• Abilene/Internet2

ISP as Additional ServiceISP as Additional Service• Monthly minimum Mbps commitment• Costs include hardware, operations,

accounting, equipment replacement• Cost model includes 10% surplus for

growth without mid-year rate increase• Surplus funds stay within program• Rates ($/Mbps) have dropped over 4

years of service ($260, $200, $126, $95)

• Monthly minimum Mbps commitment• Costs include hardware, operations,

accounting, equipment replacement• Cost model includes 10% surplus for

growth without mid-year rate increase• Surplus funds stay within program• Rates ($/Mbps) have dropped over 4

years of service ($260, $200, $126, $95)