Structural Funds for e-Infrastructure development: opportunities and challenges Lajos Balint, NIIFI/Hungarnet TNC BoF on Using Structural Funds in the.

Structural Funds for e-Infrastructure development:

opportunities and challenges

Lajos Balint, NIIFI/Hungarnet<[email protected]>

TNC BoF on Using Structural Funds in the domain of Research and Education Networks:

Past experience and Future prospective

Dublin, 19 May 2014

Nemzeti Információs Infrastruktúra Fejlesztési Intézet

Structural Funds for e-Infrastructure developments – TNC’2014 BoF2

A bit of history

2007-13: FP7 50 B€ + SF slowly entering RI(HU: ~20 M€ for e-RI)

2011-12: Horizon2020 (FP8!) / MFF preparations:”RI funding by SF only (!)”

Background: SF serves infrastructure developments(road, rail, energy … infocomm.)

2013-14: joint handling of R&D and RI – – harmonised FW + SF (ESIF) funding

~80 B€ Horizon2020 + ~100 B€ SF! (7 years)

Umbrella / framework: ERA



2014-2020 status:

e-Infrastructure is key component of the European Research Area

(mobility, openness, RI, joint programs, global hub …)

Distributed / integrated resources in the ERA (humans, funds, tools, info)

Exceptional role of e-Infrastructures (glue):e-RI → RI → R → R&D → R&D&I → Competitiveness …

Widely recognised role, function, importance !



Supportive treatment – chances of sustainability

e-Infrastructures: high priority (both EU & MS) ! (but still low R&D spending wrt. GDP levels)

Cost side: Maglaris model - 1:10:100(100M€ … 1B€ … 10 B€ / yr in RN!)(~20% CAPEX and ~80% OPEX: good assumption)

Financial resources:Horizon2020 + SF + MS funds + PPP + users

Scenarios: weakening – sustaining – strengthening

Sustainability: by strengthening only = fly or die (political / legal / technical + organisation + expertise + funding!)



Some remarkable figures

MFF plan vs. Maglaris assumptions (0,1 : 1 : 10 B€ / yr)(business model needed: costs & resources levels / structure)Assumption here:

<2% Horizon2020, <20% MS, >80% SF, <2% PPP for RIMFF: SF / yr ~ 100 B€ / 7 ~ 15 B€ RI → 5 B€ e-RI → 1,5 B€ RN

e-RI / RI ratio (FP7): 0,57/1,72 B€ RN / e-RI ratio (FP7): 27% (HPC 37%, VRE 15%, Data 21%)

Compare 1,5 B€ / yr SF for RN with Maglaris’ 10 B€ / yr cost: SF covers 15% of full annual RN cost: close to ”optimum” (Optimum is around 20 / 80 % in case of 4-5 years life-span) (Difference to be covered by Horizon2020, MS, PPP funds)Practice: somewhat different but can be improved! (eg. NIIFI)



The NIIFI case

NIIFI developments on SF basis in 2009-2012 ~ 20 M€ • DWDM on DF • HPC • Cloud • Storage • VC • middleware …



The NIIFI case – the figures

NIIFI case: (~ 1 % of everything): → 150 M€ / yr SF for RI from MFF assumably available → ~50 M€ / yr for e-Infrastructure, ~15 M€ / yr for RN

NIIFI e-RI development projects on SF basis (e-RI !): Finished (2009-12): ~2 x 10 M€ (e-Infrastructure, Edu applications) Running (2014-16): ~2 x 5 M€ (HPC/1, Edu applications) Coming (2015-18): ~4 x 10 M€ (EduCloud, HPC/2, DCH, Edu apps…)

Maglaris model: NIIFI ~1M€ / yr GEANT → ~ 100 M€ / yr RN (i.e.VM on NIIFI / yr: 20 M€ CAPEX + 80 M€ OPEX in RN, 3x in e-RI)Successful period – but not yet exploiting the opportunities! (< 50 %!)

Fast widening/expansion is needed! (not only in Hungary)

Problem: expert workforce (developer, operator, broker, advisor …)



Conclusions:

Funding e-RI development: no more a bottleneck !

NRENs should discuss:- how to best exploit the SF opportunities- how to convince / motivate MS governments

NRENs should consider: - Vertical & horizontal extension: increasing SF need!- Greening, innovation, PCP: also increasing SF need!

Specific issue wrt. EC rules on regional use of SF: higher priority of convergence regions Major issues needing NREN move: expert workforce + business model + CAPEX / OPEX issue



Closing comments:

• Some figures may somewhat be incorrect• There are a lot of question marks (eg. MS attitudes)

but• Attractive opportunities – demanding challenges …• A new situation: no lack but abundance of funds• A promising future …

Are we ready?

Let’s try to do our best to exploit the SF option – for the benefit of the widest possible community !



Explanatory addition wrt. NRENs’ opportunities:

A Summary Table of the annual rough averages [M€]:

* OPEX included** NRENs to estimate their share – and start planning / negotiating …

Maglaris Horizon2020 SF NIIFI

GÉANT 100* 40 1

RN 10 000* (40) 1500** 15

e-RI 120 5000** 50

RI 400 15000 150



Last minute addition on the OPEX issue:

”Broadband State-Aid Rules …” (DG-CNECT / wik draft):

”[SF (ESIF)] … to cover (part of) the end users’ costs ofinstallation or purchase of broadband devices, or ofmonthly subscription … [de minimis: <66 K€ / user / yr]”

A tool for transition to a good business model?

Structural Funds for e-Infrastructure development: opportunities and challenges Lajos Balint, NIIFI/Hungarnet TNC BoF on Using Structural Funds in the.

Documents

ms funds

ri funding

b horizon2020

niifihungarnet tnc bof

sf esif funding

info exceptional role

era slide

ri harmonised fw