Feasibility Study for a Statewide Higher Education Information Technology
Network
State of Connecticut, September 18, 1996
Cost of Recommended Technology Scenario
- Prices for ATM carrier services are comparable with other technologies.
For example, ATM T1 rates cost $1,000/month (per site) and T3 rates (which
few of the other technologies provide) cost $3,500/month (per site). ATM
hardware investments, however, are slightly larger than similar investments
for other technologies. A single ATM switch equipped for video, for example,
might cost around $28,000. When one examines the functionality offered by
this technology (both present day and future), ATM services are definitely
worth the investment.
- Not all sites will require ATM hardware to connect to the ATM
backbone. The study identifies connectivity alternatives that utilize
existing router technology. The costing estimates put forth in this
document can change dramatically depending upon the number of sites
actually requiring full ATM services.
- If K-12, libraries, etc. are incorporated into the initial vendor
bidding process, economies of scale can greatly reduce the costs
associated with implementing a statewide network.
- As is the case with most technologies, the costs put forth in this
document will decrease with time.
- A statewide network might also provide a variety of additional services to
its constituents, such as Internet access, remote dial-in to network
resources, and videoconferencing capabilities. Furthermore, special
attention must be given to the security and management of the network. For
these reasons, the State of Connecticut will most likely have to purchase a
variety of different pieces of hardware that are exclusive of the ATM
networking equipment. This includes Internet firewalls, communications
servers, and network management solutions. In addition, the State will have
to devote specific human resources (whether in-house or via a third party)
to the management and maintenance of this network.
- The State will require individuals to manage and maintain the network
infrastructure. Even though hardware installation, configuration, and
maintenance will most likely be outsourced to a third-party provider,
several management roles will be required in-house. This includes a service
manager to handle vendor negotiations and disputes between constituents; an
operations manager to handle day to day operations and planning issues; and
a technician to handle any inter-institution technical issues. Typically, an
individual with MIS skills will cost the State of Connecticut $100,000/year.
- It is recommended that the State of Connecticut allocate funding for the
training of faculty, administrative staff, and MIS personnel in the proper
usage of a statewide network. As a rough estimate, a single course in a
specific subject matter will cost approximately $1,000. The total cost to
the State will depend upon the number of individuals requiring training, the
degree of training, etc.
|
Summary of Costs
|
| |
|
Total Cost
(33 sites) |
Estimate Cost per additional site |
| Investment Costs |
- Voice $0
- ATM Data and video services and hardware $990,000
- Other Services and Hardware (Internet access, firewalls, network
management, remote acess, and videoconferencing equipment) $1,266,000
|
$2,256,000 |
$30,000 |
| Ongoing Costs |
- Voice (intra-state) $0.05/minute
- ATM data and video services and hardware (annual cost) $1,386,000
- ATM hardware maintenance (annual cost) $150,000
- Other hardware services and maintenance (annual cost) $284,000
- Human resources (in-house and outsourced annual FTE costs) $600,000
|
-> $0.05/minute (voice)
-> $2,420,000/year for
data and video
|
> $0.05/minute (voice)
-> $3,500/year for
data and video
|
|
