Common Business Models

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What is Your Business?Common Business Models
Among RONs and GigaPoPs
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What is Your Business?Southern Light Rail (SLR)
Financial Characteristics

• Q Who provided the initial funding for your
  network?
• A Southern Light Rails (SLR) Founding
  Participants - Georgia Tech, UGA, GSU, MCG and
  the Georgia Research Alliance (GRA)
• Q Who pays the on-going costs of your
  organization?
• A Ongoing OM costs are paid from Participant
  Fee, GRA seed grant funding and
• Q What is your methodology for allocating
  costs?
• A Participant Fee Operations Maintenance
  costs are shared equally by all
  Participants
• Services
• Participants incremental costs small
  service charge
• Affiliates incremental costs moderate
  service charge
• Non-Participant base costs
  incremental costs fully loaded service charge
• Q Who makes the cost decisions for your
  organization?
• A Officers and Board of Directors

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What is Your Business? Southern Light Rail (SLR)
Membership Characteristics

• Q What are your organizations membership
  levels?
• A Participant (voting or non-voting /
  individual university or state affiliation)
• Affiliate (member of another NLR Member)
• Non-Participant
• Q For what term do your members commit funds?
• A On an annual basis over a five-year period
• Q What is your process to add incremental
  members?
• A Petition the SLR Board to become Participant
  according to established Participation categories
  and fee schedule

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What is Your Business?Internet2 Financial
Characteristics

• Q Who provided the initial funding for your
  network?
• A Initial funding came from connection fees
  paid by GigaPops / RONs / connectors and
  participation fees from the institutions
  connected to the network. The intent is to
  equitably distribute the costs of deploying,
  managing and maintaining the network among those
  using the services. Internet2 membership dues
  are not used to cover network costs.
• Q Who pays the on-going costs of your
  organization?
• A Internet2 membership fees cover all
  non-network related activities, including
  personnel and administrative staff,
  meeting-related activities, working groups,
  workshops and projects.
• Q What is your methodology for allocating
  costs?
• A Costs are allocated on a project by project
  basis, so that the costs for the network and
  network related activities come from the Network
  Services budget and are supported by that revenue.

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What is Your Business?Internet2 Financial
Characteristics cont.

• Q Who makes the cost decisions for your
  organization?
• A Internet2 executive staff makes decisions on
  execution based on the strategic direction from
  the Board and input received from a combination
  of advisory councils, committees, and staff.
  Budgets are put together by the executive staff
  with this input, then presented to the Board for
  approval.
• Q What are your organizations membership
  levels?
• A Internet2 Members
• 208 University Members
• 70 Corporate Members
• 52 Affiliate Members
• 2 Associate Members
• Network Members
• 34 Connectors
• 245 Participants
• 147 Sponsored Participants
• 37 SEGPs

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What is Your Business? Internet2 Financial
Characteristics cont.

• Q For what term do your members commit funds?
• A Annually for both Internet2 membership and
  network participation.
• Q What is your process to add incremental
  members?
• A Internet2 membership is required to
  participate on the network (unless the
  institution is a connector, sponsored participant
  or member of a SEGP), but a member is not
  required to participate in the network.
  Typically, once membership and participation
  applications are received, the institution is
  directed toward their local GigaPop or RON for
  their connectivity.

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What is Your Business?BOREAS-Net Financial
Characteristics

• Q Who provided the initial funding for your
  network?
• A The University of Iowa, Iowa State
  University, the University of Minnesota, and the
  University of Wisconsin Madison.
• Q Who pays the on-going costs of your
  organization?
• A The four universities.
• Q What is your methodology for allocating
  costs?
• A Some of the dark fiber was donated as an
  in-kind contribution, but generally the costs are
  equally shared by the four universities.
• Q Who makes the cost decisions for your
  organization?
• A The CIOs of the four universities.

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What is Your Business?BOREAS-Net Membership
Characteristics

• Q What are your organizations membership
  levels?
• A The four universities are founders. Its
  likely there will also be associated members who
  can use the network, but have no governance
  rights. There may also be affiliate members who
  are connected through a founder or member.
• Q For what term do your members commit funds?
• A Our founders are committed for 20 years.
  There are no other members currently but the
  terms will likely be much shorter.
• Q What is your process to add incremental
  members?
• A No process has been established yet.

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What is Your Business?OSC-Merit Partnership
Financial Characteristics

• Q Who provided the initial funding for your
  network?
• A Under this model, initial funding provided
  by each individual network
• Q Who pays the on-going costs of your
  organization?
• A On-going operational costs are the
  responsibility of the individual network
• Q What is your methodology for allocating
  costs?
• A Partner network only billed for equipment
  outlays to pass partner network traffic. No
  operational costs for maintaining additional
  equipment are billed.
• Q Who makes the cost decisions for your
  organization?
• A By mutual agreement of organizations

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What is Your Business? OSC-Merit Partnership
Membership Characteristics

• Q What are your organizations membership
  levels?
• A No membership levels equal partners
• Q For what term do your members commit funds?
• A Long term, typically more than 5 years
• Q What is your process to add incremental
  members?
• A Additional partners in the reciprocal model
  will be bound through responsibilities outlined
  in an MoU

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What is Your Business?NYSERNet Financial
Characteristics

• Q Who provided the initial funding for your
  network?
• A Varies from project to project. Company
  funds, member contributions, sometimes seed grant
  money.
• Q Who pays the on-going costs of your
  organization?
• A Member contributions, along with outside
  participants (such as international networks in
  NYC. Funds from spinoff companies have
  contributed to operational costs in the past.
• Q What is your methodology for allocating
  costs?
• A Varies again by the project. Backbone
  access is postalized, local loops are not, rack
  space in NYC or BC Center is uniformly priced.
• Q Who makes the cost decisions for your
  organization?
• A The President and Chair together with the
  Board of Directors. On a daily operational level
  that authority is distributed.

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What is Your Business?NYSERNet Membership
Characteristics

• Q What are your organizations membership
  levels?
• A Today most of our members are major Carnegie
  institutions and are at the higher level of
  membership, also major contributors of talent.
  We have a small but growing number of smaller
  institutions.
• Q For what term do your members commit funds?
• A Depends on the project, from yearly for the
  research network to multiyear for capitol
  intensive projects like the Manhattan Project or
  the Business Continuity Center.
• Q What is your process to add incremental
  members?
• A We reach out directly, as do NYSERNet
  institutions, The increasing deployment of fiber
  is shifting the landscape and opening new
  opportunities.