K-20 Education Network Updatefor the

NWESD Districts

May 9, 2013

2

Overview

K-20 Governance Changes/Audit

Network Architecture Upgrade

K-20 Connectivity Costs

K-20 Governance

4

Office of the Chief Information Officer (OCIO)

General operational and technical oversight to theK-20 Educational Network Consortium

K-20 Educational Network Consortium

General K-20 Operational and Technical Oversight

K-20 Operations Cooperative (KOCO)K-20 Engineering & Day-to-Day Operations

Engineering Operations Administration Maintenance Provisioning

Current Governance

5

K-20 Operations Cooperative

UW KOCO– Monitor Network & Server Status– Troubleshoot Network Problems– Coordinate Problem Resolution– Provide and Analyze Network Performance Data– Provide Technical Support

SBCTC KOCO– Manage Video Switched Network and MCUs– Schedule Multipoint Video Resources– Provide Technical Support

Network Architecture Upgrade

7

450 Sites Connected

Thurston

Lewis

Pierce

Mason

Grays Harbor

King

Yakima

Jefferson

Pacific

Wahkiakum

Skamania

Kitsap

Cowlitz

Kittitas

Chelan

Island

FranklinBenton

Grant

Clark

Klickitat

San Juan

Clallam

Okanogan

Skagit

Columbia

Adams

Whitman

PendOreille

StevensFerry

Spokane

Garfield

Walla Walla

Whatcom

Snohomish

DouglasLincoln

Asotin

Independent College/ University (7)

Tribal Education Center/ Tribal College (11)

Telemedicine Site (5)

Public Library (24)

Public College/University (33)

Community/Technical College (65)

K-12 District/ESD (302)

TVW Olympia

Washington State Historical Society

• Over 300 K-12 districts and Educational Service Districts• More than 2,000 K-12 schools and 57,000 classrooms• Over 1.5 million students

KCTS 9 Seattle

8

Statewide Fiber Optic Backbone(2005)

Olympia

SeattleSpokane

YakimaPullman

Vancouver

School District

University or College

Library

10 Gbps

9

K-20 40 Gbps Network: Gen 3(2013)

10

Current Node Site Architecture

10

11

Future Node Site Architecture

11

12

NoaNet Outages

Major NoaNet Outages over the past year

Most Recent: Yakima Area (60+ sites)

Vendor currently meeting contractual availability metrics

Initiated Design Review Early March

Cause: Noanet Cisco Switch Failure

New Design: Remove Noanet Single Point(s) of Failure

12

Internet Service Provider (ISP) Fees

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Internet Service Provider (ISP) Fees

K-20 is statewide INTRA-net K-20 Network does not directly procure INTER-net

access for customers OSPI contracts for ISP on behalf of connected K-12

sites No state subsidy for ISP No legislatively set rate structure

– Estimates provided by OSPI at beginning of year– Actual cost determined at end of year, based on actual,

total cost of service– Includes E-rate discounts

15

ISP Usage and Cost History for K-12

16

ISP Cost per Megabit Billed to Endsites

K-20 Connectivity Costs

18

K-20 Co-pay Principles

Established by K-20 Network Consortium

All sites must pay the same amount per unit of transport – regardless of institution size, location, or connectivity methodology

Co-pay is amount needed from connected institutions after state subsidy and E-rate reimbursements

Must be in line with options available in competitive marketplace

Much lower than actual cost to provide service

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2011 – 2013 K-20 Budget

Federal E-rate24% ($7.2M)Co-pay

9.75M27%

Federal E-rate10M28%

Appropriation16M45%

20

K-20 Co-pay History

1996:– When K-20 was established, co-pay was set based on cost of a T1

in downtown Seattle ($625/quarter) 2005:

– Co-pay revised to reflect increase in Ethernet availability, cheaper rural options

– Moved to usage-based model; not capacity based– Co-pay set at $400/Mbps/quarter up to 6 Mbps; $60/Mbps/quarter

beyond 6 – Only 25 sites had usage > 6 Mbps

2012:– Co-pay revised again to address high bandwidth users– 228 sites now have usage > 6 Mbps– 59 sites now have usage > 50 Mbps

21

2012 Co-pay Review(presented to K-20 Network Consortium May 8, 2012)

Expenses have remained reasonably stable, in spite of increases in bandwidth utilization– Contributing Factors:

Removal of all ISDN video connections and many T1s Installation of lower cost Ethernet connections Transition of CTS KOCO responsibilities to UW Increases in E-rate reimbursements (60% in 2000; 71% in

2012)

Usage has increased at approximately 50% per year Transport expenses have not increased at the same rate Without changes to co-pay model, sector co-pay invoices

would increase at a greater rate than K-20 expenses Co-pay rates for high bandwidth users are increasingly

out of line with competitive marketplace

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Proposed Quarterly Co-pay Reduction(approved by K-20 Network Consortium May 8, 2012)

0 8 16 24 32 40 48 56 64 72 80 88 96 104112120128136144152160168176184192200208216224232240248 $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

95th% usage (Mbps)

Cos

t per

Qua

rter

5 45 95

$400/Mbps

$25/Mbps$40/Mbps$50/Mbps(currently 174 sites) (currently 34 sites) (currently 17 sites)

(currently 199 sites)

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Recent History

Over the past few months, some districts have indicated that they were paying more for K-20 than they could to other vendors

Some of these claims were easily addressed:– For high-bandwidth users, the new co-pay structure

addressed this– In some cases, vendors and districts were basing these

claims on outdated or inaccurate information In others, it was determined to be true K-20 and OSPI committed to districts that the co-pay

would be reassessed, and any necessary changes made

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2013 Co-pay Review

School Districts that qualify for high e-rate discounts (80% and above) may be paying more for co-pay than they would for the post-discount portion of competitive offerings (10 – 20% of the actual cost of service)

Current approach:– K-20 receives approximately $5M in e-rate reimbursements

annually for circuits procured for K-12 and library sites– Co-pay for all sites is the same – regardless of sector or e-rate

discount qualification– State appropriation currently subsidizes higher ed sites at a

greater rate than K-12 and library sites, as E-rate provides much of the K-12 and library subsidy.

In order for co-pay to stay in line with competitive marketplace, and meet legislative intent, additional changes to co-pay must be made

Tom Carrolltomc@k20wa.org (360) 725-5102

Susan Tenkhoffsusant@k20wa.org (360) 725-5103

K-20 Contact Information