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Explore the successful business model behind the I-Light fiber network project in Broomfield, Colorado on June 21, 2004. Discover the cost justifications, financial estimations, and the strategic selling points that led to its implementation. Learn from Dave Jent, the Associate Director of Network Infrastructure at Indiana Gigapop, about the key factors that influenced decision-makers and stakeholders.
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Quilt Fiber WorkshopBroomfield ColoradoJune 21, 2004 Business Models Dave Jent Indiana GigaPop Indiana University
Today's Agenda I-Light, fiber built by IU and Purdue • What we needed • What we said to justify • Cost justification • Who we presented the data to
I-Light • 36 strand fiber infrastructure between Bloomington, Indianapolis and West Lafayette • Increased capacity for services available in Indianapolis • Needed to reduce overall cost of services • Access to services that were not available, dark fiber was one
I-Light Justification • That 3-4 year out demand would be 10X of current • That if we could buy the capacity we needed for the future it would be 2X to 5X the cost of a facility we could build. (remember this was 5-6 years ago) • Return on the investment would be a few years, life span of the fiber would be 10s of years.
I-Light Justification • That vendors could not be able to provide capacity and flexibility needed. • Cost for capacity would continue to rise. • That having (owning) I-Light would create opportunities. • That we could save money by building I-Light.
Financials • Estimated cost for circuits/capacity needed/anticipated • Cost of hardware to terminate capacity • Cost for installation of fiber • Estimated (poorly) cost of ownership
Financials • Numbers, then, said it would save the Universities ~$250,000/year each over 10 years • Past few years have basically held up our assumptions • Don’t forget equipment/system replacement funding
Start the hard sell • That we would create a network that would bring together the two largest research Universities in the state and that distance would become irrelevant • The idea of closer ties with other like entities in the state was key. • The network would create and drive opportunities
Who we sold it to • University Presidents • Higher education leaders in the state • Local statehouse representatives • Governor’s office • Finance Officers
Conclusion • Financials, while very important, may not be the determining factor. • Find a champion. • Be flexible. • Be confidant in the cause.
Dave JentAssociate Director, Network InfrastructureIndiana Gigapop Operations DirectorIndiana Universitydjent@iu.edu