Financing a 1:1 Program Randy Fehr Vice President for Business Services Ken Clipperton Managing Director of University Information Services Randy Fehr.

Financing a 1:1 ProgramFinancing a 1:1 Program

Randy FehrVice President for Business Services

Ken ClippertonManaging Director of University Information

Services

Randy FehrVice President for Business Services

Ken ClippertonManaging Director of University Information

Services

The Economics of Connected LearningThe Economics of

Connected LearningQuestions we will attempt to answer…• Why did you do this?• How did you establish budget

priorities?• How did you pay for it all?• How did you make the transition from

your old approach to this one?

Questions we will attempt to answer…• Why did you do this?• How did you establish budget

priorities?• How did you pay for it all?• How did you make the transition from

your old approach to this one?

Why did you do this?Why did you do this?

• Fit with our mission

• Fit with our history/culture

• Technology ACCESS crisis

• Reasonable approach

• Fit with our mission

• Fit with our history/culture

• Technology ACCESS crisis

• Reasonable approach

Foundations for Financial Planning

Foundations for Financial Planning

• Technology expenses are operating expenses– Exceptions

• Standardization

• Technology expenses are operating expenses– Exceptions

• Standardization

How did you establish budget priorities?

How did you establish budget priorities?

• Planning is the starting point

• Value and Payback

• Tie to mission and purpose

• Planning is the starting point

• Value and Payback

• Tie to mission and purpose

Key assumptionsKey assumptions

• Unit costs and trends

• Computer lab reductions

• Rethink technology spending

• Centralization of most technology purchases

• Unit costs and trends

• Computer lab reductions

• Rethink technology spending

• Centralization of most technology purchases

Our decisionsOur decisions

• Faculty first

• All students at once

• 2-year technology refresh

• Leasing / Bond Funding

• Wireless

• Faculty first

• All students at once

• 2-year technology refresh

• Leasing / Bond Funding

• Wireless

How did you pay for it all?How did you pay for it all?

• How we developed the funding plan

• Life cycle replacement plan

• Shifts in funding to technology

• Technology spending centralized

• Wired infrastructure costs vs. wireless infrastructure costs

• How we developed the funding plan

• Life cycle replacement plan

• Shifts in funding to technology

• Technology spending centralized

• Wired infrastructure costs vs. wireless infrastructure costs

Bond FundingBond Funding

• Requirements

• Elements

• Cost of Bonds vs. Leases

• Requirements

• Elements

• Cost of Bonds vs. Leases

Bonding vs. Leasing CostsBonding vs. Leasing Costs

Bonding Leasing

Amount Funded 2,000,000 2,000,000

Interest & Cost 79,199

Cost of Lease Payments 219,600

Total Costs 2,079,199 2,219,600

Less Sale of Equipment (419,895) (17,000)

Net cost 1,659,304 2,202,600

Wired vs. Wireless CostsWired vs. Wireless Costs

Wired Wireless Core network upgrade $195,000 $100,000 ResNet $134,375 $113,000 Public spaces $62,500 $72,000 Classrooms (net & elect only) $687,500 $103,000

Total network and electric $1,079,375 $388,000 2.78

Total network, electric + furniture $1,304,375 $388,000 3.36

Wired Wireless Core network upgrade $195,000 $100,000 ResNet $134,375 $113,000 Public spaces $62,500 $72,000 Classrooms (net & elect only) $687,500 $103,000

Total network and electric $1,079,375 $388,000 2.78

Total network, electric + furniture $1,304,375 $388,000 3.36

How did you make the transition from your old approach to this one?

How did you make the transition from your old approach to this one?

• NetLearn clear about priorities

• Leadership support

• Broad agreement about purpose

• Faculty first

• Cooperation (TRUST)

• NetLearn clear about priorities

• Leadership support

• Broad agreement about purpose

• Faculty first

• Cooperation (TRUST)

Keys to a Cost Effective Implementation

Keys to a Cost Effective Implementation

• Planning

• Standardization

• Student Technology Assistants

• Partnerships

• Planning

• Standardization

• Student Technology Assistants

• Partnerships

Good Planning Lowers Costs

Good Planning Lowers Costs

• NetLearn• Faculty Development / Faculty First• Implementation planning teams

– Communication– Development (training and assessment)– Technology– Policy & Logistics

• NetLearn• Faculty Development / Faculty First• Implementation planning teams

– Communication– Development (training and assessment)– Technology– Policy & Logistics

Standardization Lowers CostsStandardization Lowers Costs

• Hardware – PC– Peripherals– Infrastructure

• Software• Support procedures

• Hardware – PC– Peripherals– Infrastructure

• Software• Support procedures

Student Technology Assistants

Student Technology Assistants

• Students are a critical and cost effective technical support resource

• Standard procedures

• Intensive training

• Students are a critical and cost effective technical support resource

• Standard procedures

• Intensive training

Partnerships are GoodPartnerships are Good

• More than buying stuff cheap

• Mutual benefits

• Mutual success

• More than buying stuff cheap

• Mutual benefits

• Mutual success

Some Lessons LearnedSome Lessons Learned

• Standardization is crucial to affordability

• Technology costs are operating costs

• Students are a critical resource

• Partnerships yield benefits

• Standardization is crucial to affordability

• Technology costs are operating costs

• Students are a critical resource

• Partnerships yield benefits

Questions…Questions…

Thank you!Thank you!

Randy Fehr

[email protected]

Ken Clipperton

[email protected]

Randy Fehr

[email protected]

Ken Clipperton

[email protected]