Spring 2004 Internet2 Member Meeting

1. Spring 2004 Internet2Member Meeting Internet2 Business Meeting

2. Agenda • Welcome & Introductions John Kennedy • Member Activities Update Laurie Burns • Grant Activities Gary Bachula • Financial Review John Kennedy • Summary / Close John Kennedy

3. Member Activities Update Internet2 Business Meeting Laurie Burns, Director Member Activities

4. Internet2 Board of Trustees and Advisory Councils

5. Governance • Internet2 Board of Trustees http://www.internet2.edu/about/board.html • Four Advisory Councils: • Applications Strategy Council • Industry Strategy Council • Networking Planning and Policy Advisory Council • Network Research Liaison Council http://www.internet2.edu/about/councils.html • Annual nominations • Three-year renewable terms

6. Internet2 Board of Trustees • Internet2 Board of Trustees • University Presidents and CEOs • Chairs of Advisory Councils • Meets twice/year • Advises broadly on strategy and Internet2’s role within higher education

7. Advisory Councils • Four Advisory Councils: • Applications Strategy Council Advises on conceptualization, functionality, technical design and development priorities of computer applications for research and education which utilize advanced networking facilities. • Industry Strategy Council Advises on strategic vision and provides input related to advanced networking and applications development, and helps focus technology transfer aspects of Internet2 initiatives.

8. Advisory Councils • Four Advisory Councils: • Networking Planning and Policy Advisory Council Advises on matters related to the planning, development, financing and managementof advanced networks for research and education. • Network Research Liaison Council Advises on working with the computer science research community on matters related to the migration of computer systems and network research into the Internet2 infrastructure, enabling a research component of the infrastructure, and providing access to such an infrastructure where feasible.

9. Nomination Process • Call for nominations sent to membership at large • Nominations come from members and Internet2 staff • Board Nominations Committee evaluates and recommends a slate of candidates to the full Board at Spring Board meeting

10. Nomination Process, continued • Board approves slate • Council members are immediately instated, and outgoing members step down • Board candidates are elected by CEOs of University members in a subsequent vote

11. New Advisory Council Members • Applications Strategy Council William Decker, University of Iowa Vijay Kumar, Massachusetts Institute of Technology Clifford Lynch, Coalition for Networked Information Harvey Newman, California Institute of Technology (reappointed) Egon Verharen, SURF Foundation Chair: David Lassner, University of Hawaii

12. New Advisory Council Members • Industry Strategy Council Daniel Atkins, University of Michigan (reappointed) James Richardson, Cisco Systems David Tennenhouse, Intel Corporation Chair: Dick Leibhaber, Leibhaber and Associates Consulting

13. New Advisory Council Members • Network Planning and Policy Advisory Council Ray Ford, The University of Montana Greg Jackson, University of Chicago Michael Krugman, Boston University (reappointed) Marilyn MacMillan, New York University Polley McClure, Cornell University Chair: Jack McCredie, University of California-Berkeley

14. Association Membership

15. What is Association Membership? • Non-profit, higher education associations with national or international scope are eligible • Other non-profit, membership-based consortia with missions that focus on advanced technologies for research and education will be considered on a case-by-case basis.

16. What Does It Cost? • Annual dues are $2,500 • Prorated to the nearest quarter based on date application is approved • Association members requiring Abilene connectivity must become Affiliate Members with Collaboration Site Status and Abilene Primary Participants

17. For more information… http://members.internet2.edu/association/ Questions? Send email to Membership@internet2.edu

18. Federal Grants & The “RAC” Internet2 Business Meeting Gary R. Bachula, VP for External Relations

19. Internet2 Research Advisory Committee • Senior Staff, Program Managers • Chaired by Gary Bachula; Nili Tannenbaum Staff Coordinator • Monthly Meetings • “Federal Grants” Cookbook • Research Template Process • Working with Our Members

20. Internet2 Research Advisory Committee • Grant Proposals in the Pipeline: • NSF – Square Kilometer Array • NSF - Luminate • NSF – ITR • DoE – MAGGIE (End to End Performance) • NSF – “Beyond the Border” - Cybertrust • NSF – Cybertrust (Ben, Dartmouth) • NSF – WIZARD Workshop • DHS – Data Analysis Center • NTIA – TOP Grant • NSF – Enhancement of Network Research • NSF – HOPI/Observatory Workshop • NSF – International Connectivity • NIH – RSNA • NSF – Performance Analysis Workshop # 2

21. 2003 Federal Grants • 5 Grants (including carryovers) • $1.5 million in direct and indirect costs • 70% distributed to MEMBERS • 30% ($475,000) internal • Without Matt’s TAI grant, 14% • BUT, Internet2 also contributed $450,000 in cost-sharing to these grants!

22. 2003 Federal Grants • Over 75% of 2003 grants were National Middleware Initiative (NMI) 1 & 2 grants • $1.1 million • Internet2 retained less than 8% of these grants, the rest went to our MEMBERS • Internet2 cost-sharing (formal) amounted to 14% of the grant amount

23. Financial Review Internet2 Business Meeting John E. Kennedy, VP for Operations

24. Internet2 Membership 206 Member Universities 202 15 Corporate Partners 16 10 Corporate Sponsors 9 41 Corporate Members 33 49 Affiliate Members 39 45 International MoU Partners 42 44 Connectors (24 at OC-12 or greater) 50 227 Participants 221 103 Sponsored Participants 70 33 Sponsored Education Group Participants (SEGPs) 25

25. Internet2 Staff Internet2 Staff Employees University Assigned Staff (Universities) Temporaries / Interns Consultants* Total 49 47 46.90 45.05 36 32 28.73 26.13 (14 11) 5 4 1.90 1.375 18 18 6.15 5.45 108 101 83.68 78.01 HeadcountFTE 2004 | 20032004 | 2003 * Time bound, individual consulting agreements

26. 2003 Audit Results • Audit conducted by Ernst & Young LLP in January and February 2004. • Audit report to the Board of Trustees dated February 9, 2004. • “In our opinion, the financial results referred to above present fairly, in all material respects, the financial position of the Corporation at December 31, 2003 and 2002, and the results of its operations, changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.”

27. U.S. Office of Management and Budget Circular A-133 • The accompanying schedule of expenditures of federal awards is presented for the purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133 “Audits of States, Local Governments, and Non-Profit Organizations,” and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the conduct of the basic financial statements and, in our opinion, is fairly presented in all material aspects in relation to the basic financial statements taken as a whole.

28. 2003 Revenues

29. 2003 Revenue & Other Support 6% 6% 27% 61% Abilene fees Member dues Grants Other

30. 2003 ExpensesOSAND Amortization Not Included

31. 2003 Expenses 11% 5% 4% 7% 8% 65% Abilene Applications Member Services Engineering Middleware Management and General

32. Balance Sheet Assets December 31, 2003 vs. December 31, 2002

33. Balance Sheet Liabilities December 31, 2003 vs. December 2002

34. Working CapitalDecember 31, 2003 vs. December 31, 2002

35. Member Dues for 2005

36. Board of Trustees Resolution • Dues for 2005 will remain at the 2004 level • Financial performance in 2003 was very good, providing some additional flexibility • Increases for future years will continue to be evaluated on a case-by-case basis.

37. Dues for 2005 • Regular University Members - $27,000 • Affiliate Members with Collaboration Site Status - $27,000 • Corporate Members (revenues > $1 bil) - $27,000 • Affiliate Members - $10,800 • Corporate Members (revenues < $1 bil) - $10,800 • Association Members - $2,500

38. Emerging Service Offerings • A formal federation of organizations focused on creating a common framework for trust in support of research and education… • Whose purpose is to facilitate collaboration through the sharing of protected resources, by means of an agreed-upon, common trust fabric. • InCommon has begun a phased roll-out with 10 participants • Full implementation is expected by June 30, 2004 • Fees are to be determined

39. Emerging Service Offerings • Multi-party Videoconferencing • Over 100 universities with Site Coordinators • Quarterly H.323 Workshops:60 trained in March, 50 in April • 15 Subscribing Organizations: Gigapops, Universities, Research Collaboratory, and Administrative Consortium • Desktop collaboration suites, phone bridging, and presentation sharing are in testing stage. • Prime Service: $2000 for 300 port hours per year.

40. 1% 0% 3% 10% 27% 2% Member Dues Total Meeting Fees Total Abilene Total Grant Total 57% Sponsorships Project Fees Investment Income/Interest 2004 Revenue Budget$27,256,838

41. Member Activities Corporate Relations 11% 16% Applications/VICI/Commons/NEES Middleware/Directories/PKI/Shibboleth 2% Security 2% Abilene 0% End to End Performance/Peer to Peer 5% Misc. BNI NMI & NMI-2 Middleware Grant 9% Other Grant 2% Administrative/Communications/ Federal/International/Chief Engineer 2% 6% 45% 2004 Operational Expense Budget$26,236,389

42. 14% 32% 6% Cyberinfrastructure Initiative Security Initiative Production Infrastructure Leadership in Advanced Networking 48% 2004 Priority Allocation$17,965,242

43. Northern Tier Networking Consortium (NTNC) Common Solutions Group (CSG) FiberCo Organization to Support Advanced Network Development (OSAND) Quilt Internet2