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
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF3
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 !
Nemzeti Információs Infrastruktúra Fejlesztési Intézet
Structural Funds for e-Infrastructure developments – TNC’2014 BoF4
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!)
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF5
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)
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF6
The NIIFI case
NIIFI developments on SF basis in 2009-2012 ~ 20 M€ • DWDM on DF • HPC • Cloud • Storage • VC • middleware …
Nemzeti Információs Infrastruktúra Fejlesztési Intézet
Structural Funds for e-Infrastructure developments – TNC’2014 BoF7
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 …)
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF8
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
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF9
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 !
Nemzeti Információs Infrastruktúra Fejlesztési Intézet
Structural Funds for e-Infrastructure developments – TNC’2014 BoF10
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
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF11
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?