Agenda

1. The Business and Technology of Caching-based Services for State Education NetworksMike LaneCacheflow, Inc.mailto:mike@cacheflow.comPhone (773) 383-9955

2. Agenda • Problems • Solutions • Deployment Scenarios • Benefits and drawbacks • Business Models • Questions

3. The Perennial Problem • How should State Education Networks transform new, versatile technology into cost-effective services for their K-20 clientele? • Today’s Case:How should a StateNet transform a Network Caching platform into a portfolio of servicesthat will attract enough K-20 clientele?

4. What Do K-20 Clientele Want? • Accelerate Internet performance • Control bandwidth costs • Block unacceptable content • Scrub viruses from content • Enhance e-Learning services • Gain & retain appropriate local control

5. What Do StateNets Want? • Increase portfolio of network-based servicesthat meet unmet K-20 needs, and are • Modestly “profitable” • Scalable • Strategic

6. Is Network Caching a K-20 Service? • The Past • Difficult for Statenets to “productize” & sell caching-based value-added services • Easy to add caching-only as hidden infrastructure whose cost borne equally by all • The Present • New caching platforms permit scalable & supportable customization of multiple content-services at both central & remote locations

7. Authentication Policy Development Reporting Authorization (Policy) Policy Enforcement Logging and log management Web Access Policy Management Virus Protection URL Filtering Bandwidth Control eLearning Services Content Caching/Acceleration/Bandwidth Gain (HTTP, Real, WMT) Proxy Framework Optimized Appliance Layered Services

8. Per School Caches • Save Bandwidth • Improve performance • Enable eLearning • Bandwidth Management • Granular Policy Services • Virus Scanning • URL Filtering • Infrastructure Caches • Save Bandwidth • Global Policy Services • Virus Scanning • URL Filtering • School District Caches • Save Bandwidth • Improve performance • District Policy Services • Virus Scanning • URL Filtering Caching Throughout the Network School Public Internet Regional PoP School Regional PoP School District School School

9. Centralized Benefits / Drawbacks • Benefits • Only a few boxes to manage • Bandwidth gain for the service provider • Revenue generating opportunity • Without cannibalizing bandwidth revenue • Moderate performance improvement • Drawbacks • Difficult for granular policy controls • Limited content acceleration for schools • Larger up front investment

10. Distributed Benefits / Drawbacks • Benefits • Bandwidth gain for customers justifies costs • Significant performance improvement • Allows schools to customize policy • E.g., different filtering users for teachers or during after school hours • Offloads firewalls • Revenue generating opportunity • Flexibility to be a managed service or purchased • Less risk – Purchase as each customer signs up • Box on premise provides platform for future services • Drawbacks • Many boxes to manage • Configuration management becomes important • May cannibalize bandwidth revenue

11. Business Models

12. Caching • Stores popular content closer to users • Saves Internet bandwidth • 50% hit rate seen at some schools • Dramatically improves performance • 50% on misses • 90% on hits Public Internet Member School Cache Browser Origin Server Browser

13. Distributed (Per School District) Caching • Low end CacheFlow per site • Allows school to delay purchasing 2nd circuit • Cost Justification • Additional benefits • Significantly improves response times • Platform for additional services… * WAN prices and pricing models vary widely based on state, distances, subsidy, etc.

14. Centralized Caching • Not well suited to a service model • Customer expects good performance • Doesn’t save customer bandwidth • Allows StateNet to get more from the network • Cost Justification for the service provider • Additional benefits • Significantly improves overall network performance • Platform for additional services…

15. Viruses Pose a Real Threat • 2001 Computer Security Institute/FBI findings: • 94% of respondents detected computer viruses • 91% detected employee abuse of Internet access privileges • Downloading pornography or pirated software • 90% of those attacked reported vandalism • 78% detected denial of service attacks • 48% of respondents detected system penetration from the outside • http://www.gocsi.com/prelea/000321.html

16. Distributed (Per School District) Virus Scanning • Low-end CacheFlow with Virus Scanning per site • Protects schools IT resources • Cost justification • Additional caching benefits are still there

17. Centralized Virus Protection Service • Well suited for service model • Charge customers per seat protected • Justification for the service provider • Additional revenue • 2 Year added revenue (for 1000 seats) - $50,000

18. Content Filtering • The Internet is full of content that is inappropriate or even harmful for children • Pornography, bombs, hate, drugs, gambling, etc. • CIPA – Children’s Internet Protection Act states that to receive eRate, ESEA Title IId and LSTA funding, certain measures to protect the children must be taken • URL filtering is the way to qualify

19. Distributed (Per School District) Content Filtering • Low end CacheFlow with Filtering per site • Protects children and qualifies under CIPA • Cost justification • Cache/Filtering cost – Year 1 - $6,300, Year 2- $2,150 • Cost Savings cache – Year 1- $8,500*, Year 2 - $8,000* • Cost Savings Filtering – Access to funds • 2 Year savings $8,050 + children are protected • Additional caching benefits are still there

20. Centralized Content Filtering Service • Well suited for service model • Charge customers per seat protected • Justification for the service provider • Cache cost – Year 1 - $36,000, Year 2- $3,600 • Filtering cost – Year 1 - $10,000, Year 2 - $10,000 • B/W Cost savings – Year 1 - $40,000, Year 2 - $40,000 • 2 Year total savings $20,400 • 2 Year added revenue (for 10000 seats) - $100,000 • Additional benefits • Significantly improves overall network performance • Platform for additional services…

21. Other Potential Services • High quality access to live or on-demand streaming content • Events • Educational broadcasting • eLearning Services • Bandwidth management • Prevents streaming from bringing down the network • Added security • Script whacking

22. Policy Becomes important • Bring more control opportunities to the individual schools • Group based rules • Group Teachers can browse anywhere • Group Students blocked from pornography, drugs, violence, gambling, and hate • Time of day policy • Content based policy • Group Students