Network Rate Structure
What is the network rate?
The network rate is a charge to recover the operating expenses associated with managing the UNLV network. The charge is designed to recoup the cost of supporting the unified architecture and the network layers.
Why are we charging this?
The goal of the OIT network rate fee structure is a stable, predictable, and adequate funding mechanism to cover the costs of supporting the UNLV network operations.
What’s the basis for the charge?
A review of how network services are handled at other higher education institutions indicated that the development of a chargeback system, based on a utility model, is considered a best practice for generating funding for the maintenance of infrastructure services and support. Using a utility model, the OIT network rate is built on a charge for each port being used.
- OIT has developed a modified port-based cost model built on the number of active ports in each building and distributed according to assigned square footage. The current cost model includes operating expenses and ongoing maintenance associated with the network. The cost of equipment refresh is not currently not in the model.
How is it calculated or distributed?
Each spring during the annual budgeting process the ongoing operational costs associated with managing the campus network are calculated, including Cisco SmartNet maintenance, software support, wiring, servers, network monitoring and security, staffing, and general network maintenance costs. An active port-based rate model is used for cost allocation. These costs are distributed based on departmental space allocation. The current rate structure does not incorporate the cost for equipment replacement, refresh, or expansion into the budget.
- Calculate the cost of running the network
- Calculate the number of active ports per building
- Calculate the cost per active port
- Calculate the cost per building by multiplying the number of active ports in each building by the cost per port
- Using data in WebCentral or Archibus (a room asset management application) determine the assignable square footage assigned to the units occupying each building
- Calculate the percentage of the usable square footage in the building each unit uses
- Multiple the percentage of building space occupied by each unit times the building cost
- Summarize the costs by Cabinet area
- Send each Cabinet member his or her annual bill
When is it billed? How often? And how is it billed?
Charge back is conducted on an annual basis. Snapshots of active ports per building and departmental space usage/utilization are taken each spring during the budgeting process. The snapshot is used as the basis for calculating and distributing costs for budget purposes.
- During the Fall of 2010 it was decided the port-based model would be implemented with FY12 business. Beginning in August 2011, each Cabinet administrator is billed annually for the network charges for units under his or her leadership.
Information regarding the network budget for the current fiscal year FY16 is now available, along with a summary from the past two fiscal years. In addition, the FY13 summary of network rate charges and a breakdown of all FY13 charges by Cabinet area is available, along with the FY12 distribution, summary of charges by Cabinet area and complete detail of charges based on space allocation is provided for comparison purposes.
As approved by Cabinet, the model has been developed to allow for differences in cost distribution across Cabinet areas. With the implementation of the port-based network rate the distribution of charges across their respective units is determined by each Cabinet administrator.
- Detailed information with the cost distribution by space allocation will be provided upon request.
How can the campus help?
Since costs are distributed on a space usage method, it is imperative that each department have its space usage data up-to-date.
For more information you may contact Georgia Stergios - IT Business Manager at 702-895-1201 or georgia [dot] stergios [at] unlv [dot] edu