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New Zealand's High Speed Research Network

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New Zealand's High Speed Research Network Report prepared for the Ministry of Business, Innovation and Employment New Zealand’s high speed research network: at a critical juncture David Moore, Linda Tran, Michael Uddstrom (NIWA) and Dean Yarrall 05 December 2018 About Sapere Research Group Limited Sapere Research Group is one of the largest expert consulting firms in Australasia and a leader in provision of independent economic, forensic accounting and public policy services. Sapere provides independent expert testimony, strategic advisory services, data analytics and other advice to Australasia’s private sector corporate clients, major law firms, government agencies, and regulatory bodies. Wellington Auckland Level 9, 1 Willeston St Level 8, 203 Queen St PO Box 587 PO Box 2475 Wellington 6140 Auckland 1140 Ph: +64 4 915 7590 Ph: +64 9 909 5810 Fax: +64 4 915 7596 Fax: +64 9 909 5828 Sydney Canberra Melbourne Suite 18.02, Level 18, 135 GPO Box 252 Level 8, 90 Collins Street King St Canberra City ACT 2601 Melbourne VIC 3000 Sydney NSW 2000 Ph: +61 2 6267 2700 GPO Box 3179 GPO Box 220 Fax: +61 2 6267 2710 Melbourne VIC 3001 Sydney NSW 2001 Ph: +61 3 9005 1454 Ph: +61 2 9234 0200 Fax: +61 2 9234 0201 Fax: +61 2 9234 0201 For information on this report please contact: Name: David Moore Telephone: +64 4 915 5355 Mobile: +64 21 518 002 Email: [email protected] Page i Contents Executive summary ..................................................................................................... vii 1. Introduction ...................................................................................................... 1 2. NRENs are essential to research data exchange .............................................. 2 2.1 A long history of NRENs ....................................................................................... 2 2.1.1 Established prior to adoption of TCP/IP ............................................. 2 2.2 An NREN to reduce coordination and transaction costs ................................. 3 2.3 NREN services support data-intensive research and international collaboration ............................................................................................................. 6 2.4 A deliberately informal club ................................................................................... 7 3. REANNZ and e-Research in NZ ..................................................................... 8 3.1 An NREN to align with goals for science in New Zealand .............................. 8 3.2 Levels of service are generous................................................................................ 9 3.2.1 Added services such as Tuakiri essential ............................................... 9 3.2.2 Eduroam needs one node for NZ but that need not be REANNZ ................................................................................................. 10 3.3 Infrastructure is a mix of leased or bought ........................................................ 10 3.3.1 Infrastructure built around a ‘backbone’ ............................................. 10 3.3.2 A cornerstone investor in Hawaiki Cable ............................................ 11 3.3.3 Capacity within New Zealand is provided by Vocus ......................... 12 3.4 Unanimous support for an NREN ..................................................................... 12 3.4.1 International collaboration benefits seem real .................................... 13 4. REANNZ is in a precarious financial position .............................................. 15 4.1 Costs have risen and are forecast to continue to rise ....................................... 15 4.2 Revenue from the Crown and members is falling ............................................ 16 4.2.1 The possibility of a significant future liability ..................................... 17 4.3 Member engagement is low .................................................................................. 17 4.3.1 Transparency of costs and cost decisions lacking .............................. 18 4.3.2 Members question focus ........................................................................ 18 4.3.3 Governance arrangements lead some to feel like captive customers rather than members ........................................................... 18 4.3.4 Concerns of universities are ignored by REANNZ .......................... 18 4.3.5 Bundling of products causes friction ................................................... 19 4.4 Market evolution means the competition is cheaper and faster than 13 years ago ............................................................................................................. 19 5. Why we have not realised specialised connectivity benefits in New Zealand ............................................................................................................ 21 5.1 REANNZ supported through the Strategic Science Investment Fund ........ 21 5.2 REANNZ needs to be used more ...................................................................... 22 5.3 Market-specific problems are timing and maturation based ........................... 23 5.4 Internal network connectivity is the main barrier to research use ................. 23 Page iii 5.5 Asymmetry of use by members results in different value perceptions.......... 23 6. How does New Zealand compare to international NRENs? ......................... 25 6.1 What makes a successful NREN? ....................................................................... 25 6.1.1 DFN in Germany is self-funded due to economies of scale ............ 26 6.1.2 Internet2 in the US strongly supported by the government ............ 27 6.1.3 CANARIE in Canada is completely government-funded ................ 28 6.1.4 JANET in the United Kingdom has both funding and engagement ............................................................................................... 28 6.1.5 NORDUnet in Nordic countries aggregate at many levels .............. 29 6.1.6 AARNet in Australia and below-market fibre .................................... 29 6.2 A number of implications for REANNZ .......................................................... 30 6.2.1 Poor representation of members and users ........................................ 31 6.2.2 The cost of international connectivity ................................................. 32 6.2.3 A limited user base .................................................................................. 33 7. An options assessment framework .................................................................. 35 7.1 Assessment criteria must be strategic ................................................................. 35 7.1.1 Supports NZ’s data science initiatives ................................................. 35 7.1.2 A durable solution ................................................................................... 36 7.1.3 An affordable service to members ....................................................... 36 7.1.4 Enhanced member engagement ............................................................ 36 7.1.5 The Crown is not worse off .................................................................. 36 7.2 The status quo is not an option ........................................................................... 37 7.3 Options range from ‘do minimum’ to ‘devolution’ .......................................... 37 7.4 Our assessment....................................................................................................... 39 7.4.1 Reinforce research collaboration in every way possible .................... 52 7.4.2 Transparency means integrity of decision making ............................. 52 7.4.3 Cost cutting is essential and synergies are worth exploring.............. 52 7.4.4 Don’t try to change university incentives through REANNZ ........ 53 7.4.5 Option short list ...................................................................................... 53 Appendices Appendix 1 Researcher interviews and survey ............................................................................... 54 NZ researchers identify value but this value cannot be measured 54 Collaboration is key to value 54 Research is considered to be data intensive 55 Data intensity is expected to increase 55 Data intensive research needs specific network characteristics 56 REANNZ network characteristics and services are important 57 Others services of lesser value 59 Value not always apparent, and may be expressed through complementary investments 61 The major barrier to use; internal network connectivity 61 Appendix 2 Feedback from CIOs of member institutions ........................................................... 64 Underlying value differs between universities and Crown Research Institutes 64 Within-group differences drive perceptions of value for universities 65 Page iv More data-intensive universities and CRIs perceive greater value from REANNZ 65 Options workshop confirmed the problem definition 66 Commercial providers are unable to meet these users’ needs 66 Cost factors less important to these universities 67 Massey perceive value from cost-savings rather than research enablement 67 Costs and research needs drove former university members from REANNZ 68 Crown Research Institutes are heavily reliant on the network 69 A decentralised IT model provided by REANNZ membership allows CRIs to function 69 A cost effective solution, with ‘club’ member privileges 70 Other parties show the value proposition can teeter either way 71 TEC
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