Projected impact of rate based billing on Wide Area Network use at Cornell

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Projected impact of rate based billing on Wide
Area Network use at Cornell

• rdv2_at_cornell.edu

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Background

• Expediential Growth
• Predictions of 50 Million/Y Wide Area Network
  Bills within 10 Years
• Poor Network Service
• Current Demand Driven by P2P
• History of Charging for Network Services

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Actions To Date

• Long Term - Working on Lowering upstate WAN
  Costs
• Forced to Install Packeteer
• Cost 30000
• Resolved Short Term Problem
• However Not Cornells Strategic Direction

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Bill by the Drink

• Will Address
• Over Consumption of a Free Good
• Concern About Content Control
• Violation of Cornell Policy
• Scalable Funding
• Fair Cost Allocation
• Improved Service

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Network Fee Areas

• 3 Cost Areas
• Edge
• Backbone
• WAN

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WAN Billing Detail

• Base Fee of 4 / Month for up to 2 GB
• 90 of users fall under this threshold
• .003 per each MB over 2 GB Base
• All Accounts Will be Billed
• Students
• Faculty
• Staff
• Both I2 and Commodity

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Sample Bill
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Administrative Faculty Feedback

• The "Top 300" administrative and academic users
  transferred 61 of academic and administrative
  data volume.
• Asked how their behavior would change under new
  billing model

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Student Use and Feedback

• Student consumption represents 70 of total WAN
  usage.
• 35 of students consume 95 of total student WAN
  use
• Office of Communication and Marketing Services
• Focus Groups
• Pizza
• 25

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Student Feedback

• There is virtually unanimous agreement that
  ResNet subscribers will change their habits under
  the new billing model
• Students anticipate that as they reach the level
  of WAN use that begins incurring a marginal cost,
  they will not be willing to pay for additional
  access. Their attitude seems to parallel
  anecdotal evidence of the Internet industry

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Student Feedback

• Expect Cornell students to pool and share data
  files rather than individually reaching out to
  the Internet and downloading files.
• They worry about accidentally exceeding the base
  4 limit.
• Privacy Concerns

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Forcast
2000MB will cover 99 of Academic/Admin and 80
of students
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Forecast

• The feedback from 38 administrators representing
  some of the top 300 academic and administrative
  WAN users suggests that under the new billing
  model data volume transferred by the large users
  is likely to decrease by 70
• Based on students input it is estimated that
  their consumption will drop by 75
• These findings are consistent with empirical
  evidence from a similar study (Berkeley INDEX
  Project) which shows that 75 of users managed
  their needs within basic service charges rather
  than paying extra for premium services
• With introduction of new rate structure the
  composite of students, academic, and
  administrative WAN consumption is likely to drop
  by 72 in FY04

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Final Thoughts

• Dropped 2 OC3s from 04 Budget
• Expect Savings to Easily Offset Development
• Will Use Packet Shaping to Smooth Student Use at
  Start of Semesters
• Security Value
• Time Will Tell
• http//www.cit.cornell.edu/services/newnetrates/