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Identifying and Securing the Requisite Resources. Anne R. Kenney, Cornell University USA Business Models related to Digital Preservation, Amsterdam, 20-22 Sept 2004. How do we identify and secure the requisite resources to maintain a digital repository?.

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Identifying and securing the requisite resources l.jpg

Identifying and Securing the Requisite Resources

Anne R. Kenney, Cornell University USA

Business Models related to Digital Preservation, Amsterdam, 20-22 Sept 2004



If we had some horses we d have a cavalry if we had some men l.jpg

“If we had some horses, we’d have a cavalry – if we had some men."

Victor Mature in Demetrius and The Gladiators, 1954


Step 1 identify cost categories l.jpg
Step 1. Identify Cost Categories had some men."

Cost categories

  • Startup costs

  • Ongoing costs

  • Contingency costs


Step 2 identify cost centers l.jpg
Step 2. Identify Cost Centers had some men."

  • Capital costs

    • Technical/procedural infrastructure

  • Direct operating costs

    • By functions, e.g., identification, acquisition, ingest, metadata

  • Overhead

    • Indirect operating expenses, e.g., indirect staff, facilities, general/administrative/support services


Step 3 calculate costs case study arxiv l.jpg
Step 3: Calculate Costs Case Study: ArXiv had some men."

  • automated electronic archive and distribution server for research papers in physics, cs, math, etc.

  • Begun in 1991

  • 281,00 item database in FY2003/4 40,000 submissions that year

  • Cost/submission: $1-$5


Calculate capital equipment costs l.jpg
Calculate Capital Equipment Costs had some men."

Annual equipment cost =

  • purchase price of hw/sw

  • amortization rate (3-5 year range)

  • annual maintenance,licenses, and development fees, estimate at 20%-50% purchase price


Capital equipment arxiv server l.jpg
Capital Equipment: ArXiv Server had some men."

  • Equipment cost: $10,600

  • Amortization: 5 years

  • Annual fees: $4,713

  • Annual equipment cost =

    $6,833($10,600/5 + $4,713)


Equipment costs preserved digital object l.jpg
Equipment costs/ preserved digital object had some men."

  • Calculated by dividing the annual equipment costs by the current and estimated growth rate of digital objects

  • The greater the number of similar digital objects, the lower the per/object equipment cost.


Arxiv annual equipment costs l.jpg
ArXiv Annual Equipment Costs had some men."

  • 281,000 submissions

  • 40,000 in FY 2003/4

  • $6,833/40,000 =

    $ .17/submission

  • $6,833/281,000 = $.02/item/year


Calculate personnel costs l.jpg
Calculate Personnel Costs had some men."

  • Staff performing specific tasks, management overhead, ancillary expenses

  • Calculate staff costs on “weighted hourly rate” not salary, which is over twice the hourly wage


Weighted hourly rate l.jpg
Weighted Hourly Rate had some men."

  • Avg. number of workdays/ year

  • Number of hours/day

  • Number of productive hours

  • Weighted hourly rate =

    salary + fringe

    productive hours


Calculating the real costs at cornell l.jpg
Calculating The “Real” Costs at Cornell had some men."

Staff:

  • 222 day work year (excluding vacation, sick, personal and holidays)

  • 7.3 hour work day (excluding breaks)

  • 1,621 hours/year at work

  • Assume 75% “production time”: 5.5 hours/day and 1,216 hours/year

  • “Weighted hourly rate” =

    salary + fringe

    1,216


Arxiv programmer analyst band f l.jpg
ArXiv: Programmer/ Analyst Band F had some men."

  • Annual hours worked: 1,216

  • Beginning salary: $35,000

  • Benefit rate: 31%

  • Hourly wage: $18

  • “Weighted hourly rate”: $35,000 x 1.31 = $37.71 1,216

    Weighted rate is 2.1 times the hourly wage.


Management and ancillary costs l.jpg
Management and Ancillary Costs had some men."

  • % of management overhead assigned/staff member

  • Ancillary expenses (min: $2,00/year)

    • training, travel, workstation support, supplies, phone/data, reference materials

  • Overhead


Example full freight programmer analyst l.jpg
Example: Full Freight Programmer/Analyst had some men."

$37.71 (WHR)

+ $ 6.85 (10% mgr overhead)

+ $ 1.16 (ancillary expenses)

$45.72

X $ 1.57 (overhead)

$71.78


Calculate services costs l.jpg
Calculate Services Costs had some men."

  • Annual or contractual fees paid for out-sourced functions, including backup, space in server farm, mirroring

  • Related services, e.g., technology monitoring, subscription to software repository, consortial fees, royalties


Step 3 calculate costs contingency l.jpg
Step 3. Calculate Costs: Contingency had some men."

  • Unanticipated expenses associated with ramp-up, training, trouble shooting

  • Will vary from institution to institution, depending on complexity, experience, size of effort


Step 3 calculate costs overhead l.jpg
Step 3. Calculate Costs: Overhead had some men."

  • Negotiated rate vs. itemized expenses

  • How much comes back to the digital repository

  • Recovered overheads vs. sunk costs vs. hidden costs


Arxiv annual costs for maintenance preservation l.jpg
ArXiv Annual Costs for Maintenance/Preservation had some men."

  • Equipment: $6,833

  • Staff (2 FTE): $91,700

  • Mgt overhead: $9,170 (10%)

  • Ancillary staff costs: $4,200

  • Contingency: $11,190

  • Overhead (57%): $70,163

  • Total: $193,256/year


Total costs l.jpg
Total Costs had some men."

  • 281,000 submissions

  • 40,000 in FY 2003/4

  • $193,256 /40,000 =

    $ $4.83/submission

  • $193,256 /281,000 = $.69/item/year


Maintaining preserving arxiv l.jpg
Maintaining/Preserving ArXiv had some men."

  • Staff costs represent the greatest expense

  • Present day costs do not equal future costs

  • Total costs will decrease only with automation of human effort

  • Per submission and per item costs will continue to decrease as the collection grows


Step 4 secure resources l.jpg
Step 4. Secure Resources had some men."

  • Additional funding

  • Reducing expenses

  • Recovering costs


Additional funding l.jpg
Additional Funding had some men."

  • One-time funding

  • Endowments

  • On-going institutional support

  • Public or government support

  • Assume responsibility by broad coalition of stakeholders



Reducing expenses l.jpg
Reducing Expenses had some men."

  • Streamlining operations

  • Automating processes

  • Eliminating redundancy of effort and content

  • Spreading cost over consortium


Recovering costs l.jpg
Recovering Costs had some men."

  • Partnership with content providers

  • Partnership fees (harness the free riders)

  • User fees

  • Third party use/mining of materials


Funding the effort lessons learned l.jpg
Funding the Effort: Lessons Learned had some men."

  • Digital preservation as a common good is not economically viable

  • Sustainable programs may not be possible at the institutional level

  • On-going dedicated funds essential

  • Content creators, users, and cultural repositories are not prepared to fund the full enterprise


Dp programs will be more sustainable if l.jpg
DP Programs Will Be More Sustainable If… had some men."

  • Digital materials are viewed as both institutional assets and public goods

  • Institutions reach an advanced stage of digital preservation commitment

  • The focus is on cost benefit rather than merely cost

  • Preservation costs are directly tied to access


Dp programs will be more sustainable if30 l.jpg
DP Programs Will Be More Sustainable If… had some men."

  • Digital resources can substitute for traditional services, publishing efforts, and collections and/or…

  • Stakeholders embrace digital content and are willing to pay for some added value, convenience, or service

  • Institutions share rewards and responsibilities


Slide31 l.jpg

“Stewardship is easy and inexpensive to claim; it is expensive and difficult to honor, and perhaps it will prove to be all too easy to later abdicate.”

Cliff Lynch, 2003



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