DELIVERING VALUE MISSION BCNET Oﬀ Ers Cost-Eﬀ Ective Shared Solutions That Place Its Members at the Forefront of Information and Communication Technology Innovation

/ ANNUAL REPORT DELIVERING VALUE MISSION BCNET oﬀ ers cost-eﬀ ective shared solutions that place its members at the forefront of information and communication technology innovation.

VISION B.C.’s research and higher education institutions will achieve their strategic objectives enabled by the contributions of BCNET. 4 Message from the President

6 Message from the Chair

8 BCNET: a unique Collaboration

10 BCNET Members

12 Services: a Common Vision

14 BCNET: a Service integrator

16 the BCNET advanced Network

18 BCNET advanced Network Service Levels

20 Building and improving the advanced Network

22 how are researchers using the advanced Network?

24 Commercial internet Service

26 the BCNET transit exchange Service

28 New Services

32 the Power of a Connected Community

34 BCNET advisory Committees and Working Groups

36 Serving our Members

38 Board of directors

40 BCNET Financial overview

43 BCNET Financial Statements MESSAGE FROM THE PRESIDENT miChaEl hryByK, prEsidENT aNd CEo, BCNET

over the past year, BCNET carried out its mission of creating Distributed Medical program continued to of advanced education, and most importantly, the cost-eff ective shared IT services for its members. We improved rely on the BCNET advanced network, which contributions of the BCNET member institutions. our network infrastructure to keep pace with the demands expanded to UBC okanagan in Kelowna. the commitment of our Board of Directors, of our world-class research and teaching institutions. which consists of senior executives from higher and our open, collaborative model of working continued the generation of “big data” from all disciplines education, government and industry, and the to evolve to encompass an even wider community. is now routine, and is pushing requirements signifi cant eff orts of our skilled management and for connectivity, computing and storage; staff , have made the past year another success. BCNET continued to support the over-arching mission of B.C. the digital infrastructure to support these Our Committees and Working Groups provided post-secondary institutions to conduct research, improve disciplines is essential to their success and valuable suggestions and helped refi ne our current teaching and learning, and engage in community service. to the advancement of knowledge. services and off ered guidance for future initiatives.

High-profi le projects at TRIUMF and NEPTUNE Canada, as well our transit exchanges are now integral parts of thanks to everyone in the BCNET community for as other initiatives in the sciences and engineering disciplines, these post-secondary and research communities, the eff orts over the past year. We will continue pushed the upper bounds of network use. the demand from and function as increasingly important data hubs. to adapt to the new and exciting challenges the arts, humanities, and social sciences is also on the rise, these innovative centres allow local community next evolution of information technology brings. refl ecting our increasingly digital—and social—world. data to be exchanged with BCNET members, and serve as a way to connect to the Internet through a Interactive videoconferencing via the Blue Jeans network, and competitive marketplace of commercial providers. world-class access to content networks such as Google, Microsoﬅ and amazon, helped faculty and students at higher education none of the above would be possible without the MICHAEL HRYBYK institutions attain their academic goals. the signature UBC continued support of CANARIE, the B.C. Ministry president and CEO, BCNET

4 bcnet 11/12 annual report bcnet 11/12 annual report 5 MESSAGE FROM THE CHAIR Jay BlaCK, Cio, simoN FrasEr uNiVErsiTy

BCNET is committed to service excellence and continuously We have been reaching out to provincial delivering value for members. Whether we are building bigger and institutions and organizations to explore new faster networks in support of teaching, learning and research, or partnerships and opportunities. Furthermore, leveraging our collective vision to share services, our members are we have completed major enhancements to partnering eff ectively to align our goals, strengths and resources, our network, and are looking at leveraging and to realize greater effi ciencies and economies of scale. our assets to advance existing and future members of BCNET. Digital infrastructure for research, innovation and education is evolving rapidly. We are a willing, enthusiastic, respected and Our collaborative, unifi ed approach is capable player in this emerging digital ecosystem, and we’re without parallel, and I am proud of our enabling our researchers and educators to connect and innovate accomplishments. our model for shared globally, nationally and provincially. services is paying real dividends, and its success is enticing other organizations to We have been successful at reducing costs for members by sharing follow our lead. technology services. For example, this year we launched a data backup service that’s enabling members to leverage existing campus equipment, staff and resources, thereby reducing their operational costs by - per cent. Additionally, we have saved members over , on storage equipment costs through a pre-negotiated JAY BLACK Master Service agreement with netapp. Chair, BCNET Board of Directors

6 bcnet 11/12 annual report bcnet 11/12 annual report 7 BCNET: A UNIQUE COLLABORATION mEmBEr owNEd. mEmBEr opEraTEd. mEmBEr sharEd.

aBout BCNet BCNet FuNdiNG a diStiNCtiVe CoMMuNity oF PartNerS

BCNET is a not-for-profi t, shared information technology BCNET’s high-speed, Since 1988, BCNET has been BCNET has built a strong services consortium led by its members, British Columbia’s high-capacity, fi bre optic dedicated to meeting the foundation of mutual trust and research universities and institutes. owned, governed and advanced network provides unique technology needs of its respect based on many years of funded primarily by its members, BCNET facilitates a unique, a common and powerful members by delivering leading- successful collaborations with collaborative inter-institutional environment—one based platform to deliver services 29% edge technology services in technology leaders across higher on equality and common goals—to explore and evaluate effi ciently, cost-eff ectively support of teaching, learning, education institutions in B.C. shared IT solutions for mutual technology challenges. and reliably. the network 50% research and community. interconnects 65 higher this foundation has been the BCNET’s shared services approach is designed to help education and research catalyst for the development member institutions cut costs, minimize technology institution sites in British 21% of a distinctive community—an duplication, improve operational effi ciency and better Columbia and 72 colleges, incomparable partnership—that serve their students, faculty, staff and communities. schools and universities aligns a multitude of higher through the provincial education institutions in the learning network (PLNet). province to work together � CORE MEMBERS � as an integrated whole.  PROVINCIAL GOVERNMENT & CANARIE GRANTS  OTHER SERVICES

8 bcnet 11/12 annual report bcnet 11/12 annual report 9 BCNET MEMBERS

Core MeMBerS hiGher eduCatioN MeMBerS reSearCh MeMBerS

the northern way of caring

UNIVERSITY HOSPITAL OF NORTHERN B.C. BC iNteruNiVerSity data CeNtre

KELOWNA GENERAL HOSPITAL ROYAL INLAND HOSPITAL

BC CHILDREN’S HOSPITAL

aGriCuLture aNd aGri-Food CaNada

eNViroNMeNt CaNada CANADIAN CENTRE FOR CLIMATE MODELLING AND ANALYSIS NATIONAL WATER RESEARCH INSTITUTE

NatioNaL reSearCh CouNCiL DOMINION RADIO ASTROPHYSICAL OBSERVATORY ROYAL JUBILEE HOSPITAL HERZBERG INSTITUTE OF ASTROPHYSICS INSTITUTE FOR FUEL CELL INNOVATION

10 bcnet 11/12 annual report bcnet 11/12 annual report 11 SERVICES a CommoN VisioN

“In these challenging economic times, the VaLue oF Shared it SerViCeS With today’s constrained BCNET facilitates an inter- colleges and universities must work budgets, campuses in British institutional forum amongst together to attain academic and BCNET’s unique collaborative model is helping Columbia are exploring ways members for collaboration and operational successes. the shared- B.C.’s research universities and institutes to share IT services to reduce discussion about important services approach can help higher alleviate fi nancial pressures by reducing costs technology duplication and information technology issues education institutions cut costs and and providing better economies of scale. minimize their campus and challenges. Working better serve their students, faculty, staff , operating costs. in this cooperative setting, and communities. It is a model that can members develop successful allow institutions to stay focused on the the rising cost of supporting models of operation to share core missions of teaching, learning, and information technology services, information technology services research.” combined with shrinking and determine the number and budgets, are placing growing STATE-OF-THE-ART breadth of services that are LEVERAGING LOWER fi nancial pressure on campus IT needed to better serve students, eDuCauSe review, vol. 46, no. 4 (July/august 2011) TECHNOLOGY TECHNOLOGY COST OF budgets. Moreover, demand for faculty, staff , and communities. LUIS M. PROENZA COLLECTIVE STANDARDS services is rising as students, president | university of akron EXPERTISE OWNERSHIP BUYING POWER faculty and staff are increasingly ROY A. CHURCH dependent on mobile devices president | lorain County Community College IMPROVING SERVICES IMPROVING and information technology for EFFICIENCIES teaching, learning and research. BETTER REDUCING ECONOMIESOF SCALE INFORMATION

TECHNOLOGY COSTS

12 bcnet 11/12 annual report bcnet 11/12 annual report 13 SERVICES SERVICES BCNET: a sErViCE iNTEgraTor a porTFolio oF sErViCEs

BCNET operates as a service integrator by expertise and staﬀ , and by coordinating and acquiring services from its own members or managing contracts on behalf of its members, EXISTING SERVICES from third-party service providers. By leveraging BCNET reduces IT costs and oﬀ ers economies existing member resources such as hardware, of scale for its members. BCNet adVaNCed NetWorK CoMMerCiaL iNterNet traNSit eXChaNGe SerViCe (iNterNet eXChaNGe)

SERVICE PROVIDERS

FACILITY HOSTS SERVICE FOR EQUIPMENT OPERATORS NEW SERVICES 2011-2012 SERVICES DEVELOPMENT

data BaCKuP aNd StoraGe CLoud CoMPutiNG A SERVICE INTEGRATOR diStriButed VideoCoNFereNCiNG SoFtWare PurChaSiNG StoraGe eQuiPMeNt ProCureMeNt diGitaL Media rePoSitory VirtuaL router Shared data CeNtre MEMBERS MEMBERS NetFLoW teLePreSeNCe

14 bcnet 11/12 annual report bcnet 11/12 annual report 15 THE BCNET ADVANCED NETWORK

PRINCE GEORGE

BcNet’s supercharged network The BcNet Advanced Network is a • Sharing, accessing and transmitting very large data ﬁ les spans , kilometers across private Internet for higher education British Columbia and connects and research. It facilitates the • Videoconferencing higher education and research transport of vast amounts of data • Accessing high-performance and institutions in the province. amongst local and global research grid computing and higher education institutions • Operating and monitoring remote BcNet links to the caNaRie sensing equipment which would not be possible over the network, Canada’s Advanced commercial Internet. The network • Collaboration technologies for Research and Innovation teaching also provides a powerful technology Network that stretches , platform to deliver shared services. kilometers across Canada. The Network links researchers and innovators across the KAMLOOPS Since 2006, advanced network traffic has increased 445% and, country to a web of  private in the last year alone, demand for research networks reaching 445% bandwidth has grown by 41%. CANARIE over  countries. VANCOUVER CALGARY up To 72 waVElENgThs oF CapaCiTy aT KELOWNA SEATTLE 10 gigaBiTs/waVElENgTh VANCOUVER CarriEr-Class ipV6-ENaBlEd NETworK SURREY VICTORIA REACHING 112 NETWORKS IN OVER 80 COUNTRIES

SEATTLE

16 bcnet 11/12 annual report bcnet 11/12 annual report 17 BCNET ADVANCED NETWORK SERVICE LEVELS THE VALUE OF THE ADVANCED NETWORK

BCNET serves as a ﬁ bre holding company, OF RESEARCHERS SURVEYED ARE providing a means for its member community VERY SATISFIED WITH THE BCNET to acquire ﬁ bre optic network assets. ADVANCED NETWORK*

*From a survey of researchers in British Columbia by Sentis Research BCNET core members pay a combined annual SAVINGS PER YEAR FOR MEMBERS rate of . million for ﬁ bre optic advanced network service that has an estimated annual market rate of . million for the equivalent level of high-speed service.

the collective savings for core members is . million annually, or  per cent, over 87% current market rates. $1.7M 24/7 * BCNET core members have an invested INVESTED VALUE IN FIBRE OPTIC 99.9466* 99.989 SuPPort For the value of  million in the long-term assets ADVANCED NETWORKS CoMMerCiaL iNterNet adVaNCed NetWorK adVaNCed NetWorK that make up BCNET’s ﬁ bre optic advanced network. aVaiLaBiLity aVaiLaBiLity University of British Columbia’s Network Operations Centre the estimated market value for a comparable *Average percentage of time from April 2011 - March *Average percentage of time from April 2011 - March 2012 that provides around-the-clock expert 2012 that Internet services were available at each Transit the CANARIE network was available to BcNet. Downtime includes dedicated high-speed network service is over Exchange. Downtime includes scheduled maintenance, scheduled maintenance, unscheduled outages and periods of support to ensure uninterrupted, unscheduled outages and periods of uncollected data. uncollected data. Lightpath connectivity is not included. problem-free network service.  million. $14M

18 bcnet 11/12 annual report bcnet 11/12 annual report 19 BUILDING AND IMPROVING THE ADVANCED NETWORK

VaNCouVer iSLaNd GetS a BroadBaNd BooSt NetWorK uPGradeS iMProViNG NetWorK reSiLieNCy

this year, BCNET BCNET continually upgrades its existing digital Secondary or fully redundant networks completed the infrastructure to enhance network capacity, have been built for core members and are construction of a HERZBERG INSTITUTE OF ASTROPHYSICS speed, resiliency and security. delivering critical backup network service 10-Gigabit high- in the event of a disaster. speed ﬁ bre optic network that teN times the caPacity foR B.c’s leadiNG ReseaRch facilities • British Columbia Institute of technology links new research and higher • TRIUMF to LHCONE • university of British Columbia education institutions in the (large Hadron Collider open network environment) • Simon Fraser university Saanich region of Vancouver VANCOUVER ISLAND TECHNOLOGY PARK (VITP) 10 =10x Island. these supercharged GIGABIT ETHERNET CAPACITY • Genome Sciences Centre • thompson rivers university advanced networks provide CAMOSUN COLLEGE • BC Cancer agency - BC Cancer (INTERURBAN CAMPUS) unfettered bandwidth that research Centre eNhaNCiNG NetWorK SerViCe enables research and higher • WestGrid to University UNIVERSITY OF VICTORIA education institutions to of British Columbia this year, BCNET completed a feasibility connect and collaborate study to build a transit exchange in Surrey, across the province and B.C. the transit exchange will increase around the world. the diversiﬁ cation of network services for Vancouver-based members. a high-speed redundant CAMOSUN COLLEGE network was built for the (LANDSDOWNE CAMPUS) university of Victoria that VANCOUVER safeguards network services ROYAL JUBILEE HOSPITAL in the event of a disaster. BCNET VICTORIA TRANSIT EXCHANGE

20 bcnet 11/12 annual report bcnet 11/12 annual report 21 HOW ARE RESEARCHERS USING THE BCNET NETWORK?

In 2012, BCNET conducted a reSuLtS FroM SurVey reSPoNdeNtS Future reQuireMeNtS quantitative research study to gather data from researchers about their use of the BCNET USE THE BCNET ADVANCED NETWORK FOR VERY USE THE BCNET ADVANCED advanced network, network LARGE DATA COLLABORATIONS FOR RESEARCH NETWORK FOR TEACHING 74% service satisfaction and 53% 76% requirements for network OF RESPONDENTS PREDICT THEY storage. a total of 304 WILL WORK ON RESEARCH PROJECTS tyPeS oF reSearCh CoLLaBoratioN uSed CoLLaBoratioN teChNoLoGieS uSed For teaChiNG THAT REQUIRE HIGH-SPEED researchers were selected 65 +44 +40 +29 +26 +23 +15 +24 +23 +26 +29 +40 +44 65 ADVANCED NETWORKS, WITHIN THE in B.C. and 80 researchers +10 +19 +38 +62 88 aCCEss To mulTimEdia maTErials NEXT THREE TO FIVE YEARS shariNg, aCCEssiNg, or TraNsmiTTiNg 65% completed the survey. 88% 88% VEry largE daTa FilEs aCCEss To disTaNT liBrariEs 44% uTiliziNg VidEoCoNFErENCiNg To

CollaBoraTE wiTh rEsEarChErs 62% aCCEss To VidEo sTrEamEd aT oThEr iNsTiTuTioNs 40% lECTurEs/prEsENTaTioNs 84% OF RESPONDENTS REPORTED THAT aCCEssiNg high-pErFormaNCE VidEo sTrEamiNg oF lECTurEs/ 38% 29% THEY WILL NEED COLLABORATION aNd/or grid CompuTiNg prEsENTaTioNs TECHNOLOGIES FOR TEACHING, WITHIN high-dEFiNiTioN VidEoCoNFErENCiNg $ opEraTiNg or moNiToriNg rEmoTE 26% THE NEXT THREE TO FIVE YEARS 88M 19% oF lECTurEs/prEsENTaTioNs EQuipmENT or sENsiNg dEViCEs ThE ToTal amouNT oF rEsEarCh aCCEss To lEarNiNg FuNdiNg graNTs For proJECTs oBJECT rEposiToriEs 23% ThaT rEly oN ThE BCNET NETworK oThEr CollaBoraTiVE TEChNologiEs 10% ElECTroNiC Classroom iNVolViNg disTaNT lEarNErs 15%

N=42 oThEr 24%

22 bcnet 11/12 annual report bcnet 11/12 annual report 23 COMMERCIAL INTERNET SERVICE

Internet demand has BCNET buys in bulk and aggregates Internet services on behalf of nearly doubled in the past its core members to secure the best service at the lowest price. three years as more and more students, faculty and SOCIAL MEDIA WIRELESS reduCed iNterNet CoStS By staﬀ go online. In fact, research universities and In an era of exponential institutions in B.C. are one DEVICES demand, BCNET has of the largest wholesale successfully cut Internet consumers of Internet GAMES costs for its six core members services in the province. by % over last year, while GOOGLE 17% increasing overall capacity. VIDEO Peering diverts traﬃ c from commercial Internet providers by as FACEBOOK much as % and saves members an estimated , per year. STREAMING BCNet reduCeS CoStS By:

acting as a service enabling cost-free Internet aggregator that negotiates traﬃ c to travel from YOUTUBE contracts with commercial member sites to popular NETFLIX vendors for the best websites like Google and service at the lowest rate. Facebook through peering relationships at Internet TWITTER exchanges.

24 bcnet 11/12 annual report bcnet 11/12 annual report 25 THE BCNET TRANSIT EXCHANGE SERVICE aN iNNoVaTiVE iNTErNET EXChaNgE

“through Wavefront’s access to the What iS the BCNet traNSit eXChaNGe? NeW PartiCiPaNtS BCNET Advanced network, we were

able to collaborate with researchers at The BcNet Transit Exchange, an innovative Internet Exchange, BcNet has built five Transit Exchanges Over the last year, six new organizations joined the Transit Exchange for the benefits SFU and quickly move from testing to is a single high-performance platform that enables networks in B.C. to optimize data traffic, provide of peering, improving network performance and buying and selling network services. prototyping.” of Internet service providers, content and entertainment a wide-array of cost-effective network providers, co-location and web hosting providers, broadcasters, services for members and to foster research and higher education institutions, business and community and economic development. government to meet and exchange IP traffic and buy and sell PETER LUONG, network services. The Transit Exchange provides participants PriNCe GeorGe traNSit eXChaNGe Fusion pipe’s Ceo lower costs and increased network performance. CITYWEST CABLE AND TELEPHONE CORP.

BroadCaSterS ViCtoria traNSit eXChaNGe

CAMOSUN COLLEGE – LANSDOWNE AND INTERURBAN CAMPUSES

QUICKSILVER WIRELESS eNtertaiNMeNt aCadeMia iNterNet SerViCe ProViderS UNIVERSITY OF VICTORIA – NEPTUNE ProViderS

BuSiNeSS KeLoWNa traNSit eXChaNGe

GoVerNMeNt OKANAGAN COLLEGE – AEROSPACE CAMPUS

WeB hoStiNG AGRICULTURE AND AGRI-FOOD CANADA – SUMMERLAND RESEARCH FACILITY ProViderS the BCNet traNSit eXChaNGe a SiNGLe, hiGh-PerForMaNCe VaNCouVer traNSit eXChaNGe CoNteNt ProViderS PLatForM Where NetWorKS Meet reSearCh iNStituteS WAVEFRONT - WIRELESS INNOVATION SOCIETY OF BRITISH COLUMBIA

AGRICULTURE AND AGRI-FOOD CANADA – AGASSIZ RESEARCH FACILITY

26 bcnet 11/12 annual report bcnet 11/12 annual report 27 NEW SERVICES

data BaCKuP aNd StoraGe StoraGe eQuiPMeNt ProCureMeNt

DATA-SAFE DECREASES MEMBER > BCNet reduCed MeMBer OPERATING COSTS FOR SECONDARY StoraGe eQuiPMeNt CoStS data BaCKuP aNd StoraGe DATA BACKUP BY By 55% or aN eStiMated $974,000 StoraGe eQuiPMeNt ProCureMeNt > VirtuaL router 30-50%

NetFLoW DATA-SAFE is an online, fully managed, fast, safe and secure secondary backup service that stores data at a campus data centre inside B.C., but outside of the CLoud VideoCoNFereNCiNG earthquake zone. 55%BcNet has reduced storage equipment costs for members by as much as 55 per cent, The service not only reduces risk to members’ data, or an estimated $974,000, by negotiating teLePreSeNCe it effectively decreases members’ operating costs for a Master Service Agreement (MSA) with secondary data backup service by 30-50 per cent. By NetApp, a commercial vendor that offers fostering inter-institutional partnerships, BcNet was able innovative data storage solutions. to leverage existing campus equipment, infrastructure and expertise to create this successful integrated service. The MSA offers the option to purchase storage equipment from a pre-negotiated price list and is helping standardize storage equipment across member institutions.

28 bcnet 11/12 annual report bcnet 11/12 annual report 29 NEW SERVICES

diStriButed VideoCoNFereNCiNG SerViCeS VirtuaL router NetFLoW For NetWorK ViSiBiLity aNd SeCurity With shrinking campus budgets and teLePreSeNCe For e Virtual Router service BcNet has investigated adopting a real-time network escalating travel costs, inexpensive, highly VirtuaLLy-there MeetiNGS > traffic analyzer and monitoring solution called NetFlow. eﬃ cient, distributed videoconferencing reduces equipment, facility The traffic analyzer enhances network visibility, security, reliability and resiliency by keeping an eye on network BcNet is investigating the viability of Telepresence, a and operating costs by services provide immediate returns in bandwidth, performance, traffic patterns and security alerts. videoconferencing system that creates life-like immersive reduced travel time and costs. experiences, as an enterprise-level service for higher BcNet has determined that a shared solution will help education members. network engineers across institutions proactively manage network performance and application issues. Telepresence creates a virtual experience by replicating face- CLoud VideoCoNFereNCiNG For PeNNieS A Request for Proposals has been issued to vendors to-face interactions through sophisticated video monitors and * and a solution will be recommended in 2012. audio systems. The technology can open new possibilities for learning through virtual training environments, improved videocoNfeReNciNG collaboration and reduced travel costs. meetiNGs weRe held 28-40% acRoss 11 BcNet memBeR In 2012, BcNet launched a Virtual Router service that iNstitutioNs usiNG is removing financial barriers for smaller institutions

mEETiNgs Blue JeaNs NetwoRk. 697 to connect to the BcNet Advanced Network. The Virtual Router service is a cloud-based, BcNet funds and bulk buys Blue Jeans Network services, a carrier-grade, high-performance router, or cloud-based videoconference bridging service that enables network switch, that connects an institution’s easy and low-cost video collaboration, anywhere, anytime. EASY TO USE network to the BcNet Transit Exchange. sChEdulE mEETiNgs usiNg a wEB iNTErFaCE Adopted and funded by BcNet in 2011, Blue Jeans offers a Routers, which direct traffic between networks, cost-effective, easy-to-use, cloud service that links room-based SCALABLE can be cost-prohibitive investments for smaller systems to multiple videoconferencing platforms. up To 25 pEoplE From aNywhErE iN organizations. This virtualized service offers shared ThE world CaN aTTENd a mEETiNg hardware, a “virtual router”, that eliminates the BcNet invested $40,000 on a one-year service contract that need for members or affiliates to purchase, operate extended service to its member community. A business case UNLIMITED ACCESS and service costly equipment on their own. has been developed that proposes a larger-scale adoption of aNyoNE wiTh a wEB BrowsEr CaN JoiN a mEETiNg Blue Jeans for members. *Based on a 3-year amortization period for equipment

30 bcnet 11/12 annual report bcnet 11/12 annual report 31 THE POWER OF A CONNECTED COMMUNITY adVoCaTiNg TEChNology soluTioNs

BCNET builds inﬂ uential working relationships with 160 CommiTTEEs, worKiNg groups aNd individuals from research proJECT TEam mEETiNgs lasT yEar universities and institutes, industry and government. 122 these organized communities iNdiViduals parTiCipaTiNg iN of interest, known as CommiTTEEs, worKiNg groups aNd Committees and Working spECial iNTErEsT groups Groups, meet continually to discuss common technology 29 challenges and recommend parTiCipaTiNg orgaNizaTioNs, iNCludiNg rEsEarCh uNiVErsiTiEs & iNsTiTuTEs, shared IT solutions. goVErNmENT & iNdusTry 14 CommiTTEEs aNd worKiNg groups FoCusEd oN CommoN TEChNology ChallENgEs 10 iT proJECTs 5 sharEd soluTioNs dEliVErEd

32 bcnet 11/12 annual report bcnet 11/12 annual report 33 BCNET ADVISORY COMMITTEES & WORKING GROUPS

APPLICATIONS ADVISORY IDentItY MAnAGeMent RESEARCH ADVISORY NETWORK PLANNING SecURItY WORKInG GROUP InteRnet tRAnSIt AnD COM MI T T EE WORKInG GROUP COMMITTEE ADVISORY COMMITTEE Hugh Burley, tRu PeeRInG WORKInG GROUP Frances Atkinson, sfu Boaz Av-Ron, ecuad Kim Dotto, Bcit Hugh Burley, tRu Larry Carson, uBc Jean-Francois Amiot, Cybera Steve Beaudry, RRu Steve Beaudry, RRu Norbert Haunerland, sfu Stefan Cioata, Bcit Wesley Cole, tRu Kimberlee Baryluk, University of Sask. Hugh Burley, tRu Randy Bruce, Bc Campus Marilyn Hay, BcNet Lorenzo Constantino, sfu Marilyn Hay, uBc David Burkholder, tRu Gregory Condon, uNBc Hugh Burley, tRu Mohamed Hefeeda, sfu Mike Edel, Shaw Communnications Dave Kubert, uNBc Stefan Cioata, Bcit Dean Crawford, BcNet Wesley Cole, tRu Michael Hrybyk, BcNet Jim Ghadbane, caNaRie Don McWilliam, uBc/BcNet Wesley Cole, tRu Michael Hrybyk, BcNet Dean Crawford, BcNet Rob Inkster, ecuad Marilyn Hay, uBc/BcNet Keir Novik, sfu/BcNet Al Dunthorne, Brandon University Michael LeBlanc, uBc Leo de Sousa, Bcit Peter Jackson, uNBc Geoffrey Holan, telus Michael Ryan, uBc Art Exner, University of Regina Keir Novik, sfu/BcNet Jens Haeusser, Erudio Solutions Martin Kirk, uBc Michael Hrybyk, BcNet Andy Scott, Bcit Michael Gregory, sfu Corey Scholefield, uvic Paul Hilchey, uvic Tamara Klein, BcNet Ron Kozsan, uvic Tom Steeves, uvic Marilyn Hay, uBc/BcNet Paul Stokes, uvic Steve Hillman, sfu Michael Miller, uvic Dave Kubert, UNBC Eric van Wiltenburg, uvic Ron Kozsan, uvic Mark Zuberbuhler, uBc Hari Mailvaganam, uBc Donald Noakes, tRu Douglas Lindner, Juniper Networks Toby Wong, uBc/BcNet Dave Kubert, uNBc Jeremy Rosenberg, sfu James Rout, ecuad Brian Mackay, tRu Clarence Lee, BcNet cOL L A bOR At IOn Garry Sagert, uvic David Schade, Herzberg Institute Don McWilliam, BcNet netWORK MAnAGeMent Gerry Miller, University of Manitoba tecHnOLOGIeS WORKInG GROUP Corey Scholefield, uvic Alan Wagner, uBc Parker Moore, Bc Hydro WORKInG GROUP Michael Thorson, uBc Frances Atkinson, sfu Stan Shaw, Corban Technology Scott Reynolds, David Burkholder, tRu Andree Toonk, uBc/BcNet Mary Burgess, RRu Mike Shore, Bcit ARTS, HUMANITIES, Tellabs Communications Canada Scott Campbell, uvic Sean Wang, uBc Gregory Condon, uNBc Rob Urquhart, sfu SOCIAL SCIENCES Andree Toonk, BcNet Wesley Cole, tRu Brian Corrie, sfu Byron White, uNBc SPECIAL INTEREST GROUP Sean Wang, uBc Glenn Davies, sfu Dean Crawford, BcNet Doug Buis, tRu Marilyn Hay, uBc/BcNet Andrew Daviel, tRiumf VOIce OVeR InteRnet Dean Crawford, BcNet FIbRe InFRAStRUctURe Geoffrey Holan, Telus Glenn Davies, sfu PROtOcOL WORKInG GROUP Henry Daniel, sfu WORKInG GROUP Jun Jian, caNaRie Irwin Devries, tRu Brent Besse, RRu Michael Filimowicz, sfu Lorenzo Constantino, sfu Joubin Moshrefzadeh, Bcit Lance Grant, uvic David Burkholder, tRu Michael Hrybyk, BcNet Michael Gregory, sfu Andree Toonk, BcNet Michael Hrybyk, BcNet Scott Cambell, uvic Rob Inkster, ecuad Marilyn Hay, uBc/BcNet Valerie Irvine, uvic Blair Craft, uNBc Tamara Klein, BcNet Michael Hrybyk, BcNet Mark Jutras, sfu Dean Crawford, BcNet Andrew Kitchenham, uNBc Clarence Lee, BcNet Anthony Knezevic, uBc Karl Hildebrandt, Bcit Ashok Mathur, tRu Bob MacDonald, uBc Paul Livingston, Bcit Michael Hrybyk, BcNet James Rout, ecuad Parker Moore, Bc Hydro Jonn Martell, fdu Pete Korotash, uNBc David Schade, Herzberg Institute Colin Schmutter, Bcit James Nattall, ecuad Dave Kubert, uNBc Richard Smith, Centre for Digital Media Dave Stillwell, uBc/BcNet Keir Novik, sfu/BcNet Michael LeBlanc, uBc Stefan Smulovitz, sfu Patricia Todd, uvic Grant Potter, uNBc Keir Novik, sfu/BcNet Stan Shaw, Corban Technology Maria Torillo, Bcit Solutions Inc. Flemming Sorvin, uvic Todd Zimmerman, uBc –Okanagan campus Mark Zuberbuhler, uBc

34 bcnet 11/12 annual report bcnet 11/12 annual report 35 SERVING OUR MEMBERSCOLLABORATIVE TECHNOLOGIES USED FOR TEACHING

BCNet & hPCS CoNFereNCe 2012, CONNECT. COMPUTE. COLLABORATE. iNForMatioN teChNoLoGy WorKShoPS, traiNiNG & deMoNStratioNS

BCNET joined forces with CoNFereNCe SuCCeSSeS CoNFereNCe reSuLtS BCNET supports the deMoNStratioNS oF outreaCh Compute Canada and development of emerging eMerGiNG teChNoLoGieS Forged stronger relationships with • enabled demonstrations of Canadian big WestGrid to bring together community technologies and provides • deleGates including science projects at Global Science AAAS IT leaders at higher education It management and staff, opportunities for learning • Videoconferencing • Showcased emerging It solutions for Conference institutions from across Canada, faculty, students and and collaboration through campuses • Video repositories 477 industry professionals • attended 11 campus and industry events high-proﬁ le members of the workshops, demonstrations • Discussed members’ It needs • Creative Commons Canadian and international and technical sessions. • educated community • telepresence research communities and year-over-year experts in high-performance • Celebrated BCNET’s accomplishments iNcRease WorKShoPS • Massive data collaboration over in attendees computing for a three-day a production-grade 100-Gigabyte 25% network demonstrated at the 2011 ideNtity maNaGemeNt conference on May -, . CoNFereNCe ProGraM Super Computing Conference in Seattle. iPv6 3 hiGh-PRofile keyNotes of survey respondents • World IPv6 Day rated the conference • Customer Management as eXcelleNt iPv6 commuNity laB 57 sessioNs / 6 tRacks 92% oR Good Database Workshops 7 haNds-oN woRkshoPs

30 iNdustRy veNdoRs of survey respondents would RecommeNd the 85% conference to their colleagues

36 bcnet 11/12 annual report bcnet 11/12 annual report 37 BOARD OF DIRECTORS ALIGNING WITH INDUSTRY AND GOVERNMENT BCNET partners with leading high-technology and telecommunications organizations

Chair PLATNUM Jay Black | CIO | Simon Fraser University

38 bcnet 11/12 annual report bcnet 11/12 annual report 39 BCNET FINANCIAL OVERVIEW

BCNET generated a small During the year, BcNet continued to invest in the network, spending reVeNue treNdS CaPitaL iNVeStMeNt $2.5 million on fibre and associated network equipment. The fibre optic surplus of $, on network currently has an investment of approximately $14 million, of revenues of $5 million in the which 50 per cent has been funded by federal and provincial grants. $6,000 year ended March 31, 2012. The primary users of BcNet’s Advanced Network and services are its founding $5,000 BCNET has a healthy balance and core members, who provide BcNet with 50 per cent of its revenues. The network continues to consume most of BcNet’s resources, with 60 per cent of $4,000 $16 sheet, with approximately $14 expenditures allocated to network connections, management and equipment. Office, $3,000 $12 $1 million in net cash and management staff and administrative costs are 13 per cent of total expenses. $10

$2,000 $8 investments reserved for $6

capital expenditures, over 2012 reVeNueS ($000’s) 2012 eXPeNditureS ($000’s) $4 $1,000 $2 $- the next few years. 2008 2009 2010 2011 2012 MILLION 2008 2009 2010 2011 2012 $000 oThEr iNComE graNTs oThEr sErViCEs mEmBErs

eXPeNditure treNdS

$6,000

$5,000

$4,000

$3,000  oThEr iNComE $43  oThEr $121  goVErNmENT graNTs $1,068  NETworK CoNNECTioNs $1,189 $2,000

 sErViCEs To FouNdiNg & CorE mEmBErs $2,521  iNTErNET TraNsiT $847  oThEr sErViCEs $1,449  EQuipmENT $580 $1,000  NETworK maNagEmENT & opEraTioNs $1,198  oFFiCE aNd admiNisTraTioN $657 $000 2008 2009 2010 2011 2012  marKETiNg & CommuNiCaTioNs $271 oFFiCE & admiN marKETiNg & CommuNiCaTioNs  appliCaTioNs $202 appliCaTioNs TraNsiT NETworK

40 bcnet 11/12 annual report bcnet 11/12 annual report 41 44 Management responsibility for Financial reporting 45 independent auditor’s report

BCNet FiNaNCiaL StateMeNtS

46 operations

47 Changes in Net assets

48 Cash Flows

49 Financial Position

50 Summary of Significant accounting Policies

52 Notes to Financial Statements

55 Schedule: expenses

42 bcnet 11/12 annual report bcnet 11/12 annual report 43 BCNET FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2012

44 bcnet 11/12 annual report bcnet 11/12 annual report 45 BCNET FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2012

BCNET BCNET StateMeNt oF oPeratioNS StateMeNt oF ChaNGeS iN Net aSSetS FOR THE YEAR ENDED MARCH 31 FOR THE YEAR ENDED MARCH 31

2012 2011 tOtAL cAPItAL ASSetS InteRnALLY nOt FUnDeD UnReStRIcteD 2012 2011 REVENUES ReStRIcteD bY GRAntS Local metro circuits $ 1,852,220 $1,780,200 (NOTE 6) (NOTE 7) Transit 1,121,601 1,175,374 Grant revenue 1,068, 204 1,033,696 Net assets, beginning of year $ 2,268,052 $ 932,675 $ 99,617 $ 3,300,344 $ 3,253,805 Transit exchange 879,985 877,700 Excess (deﬁ ciency) of Partner and sponsor revenue 50,000 50,000 revenues over expenses (919,835) — 936,187 16,352 46,539 for the year Interest revenue 32,060 29,562

Installations 66,660 64,000 Acquisition of capital assets 1,106,856 — (1,106,856) — — Eduroam Fees 10,800 10,800 Net assets, end of year $ 2,455,073 $ 932,675 $ (71,052) $ 3,316,696 $ 3,300,344 5,081,530 5,021,332

EXPENSES (SCHEDULE) Cost of services 2,063,268 2,224,790 Stafﬁ ng 1,441,772 1,374,001 Equipment and software 1,012,024 1,051,950 Operating expenses 548,114 324,052 5,065,178 4,974,793

Excess of revenues $ 16,352 $ 46,539 over expenses for the year

46 bcnet 11/12 annual report bcnet 11/12 annual report 47 BCNET BCNET StateMeNt oF CaSh FLoWS StateMeNt oF FiNaNCiaL PoSitioN FOR THE YEAR ENDED MARCH 31 MARCH 31

2012 2011 2012 2011 Assets Cash provided by (used in) CURRENT OPERATING ACTIVITIES Cash and cash equivalents $ 1,567,224 $ 2,621,121 Cash received from clients $ 3,533,488 $ 4,257,937 Accounts receivable 602,487 130,104 Cash paid for transit and local loop (1,176,977) (1,441,582) Prepaid expenses 389,518 350,887 Cash paid for hardware and software maintenance (557,908) (373,854) Current portion of prepaid deposit on fi bre (Note 2) 55,890 44,821 Cash paid for staffi ng (1,557,226) (1,611,029) 2,615,119 3,146,933 Cash paid for operation (457,556) (289,506) Capital assets (Note 1) 6,328,404 5,474,269 Cash received from sponsors 72,060 47,650 Prepaid deposit on fi bre (Note 2) 229,099 78,368 Interest received (8,287) 41,088 $ 9,172,622 $ 8,699,570 (152,406) 630,704 Liabilities and Net Assets FINANCING ACTIVITIES CURRENT Cash received from grants 1,676,045 1,575,000 Accounts payable and accrued liabilities $ 99,371 $ 264,313 Loan repayment (125,284) (125,284) Current portion of longterm debt (Note 3) 92,783 88,745 1,550,761 1,449,716 192,154 353,058 INVESTING ACTIVITIES Long-term debt (Note 3) 652,403 745,186 Purchase of fi bre (1,289,671) (1,935,603) Deferred grants (Note 4) 4,644,121 3,961,786 Purchase of capital equipment (1,162,581) (328,115) Deferred revenues (Note 5) 367,248 339,196 (2,452,252) (2,263,718) 5,855,926 5,399,226 Cash and cash equivalents movement for the year (1,053,897) (183,298) Net assets 3,316,696 3,300,344 Cash and cash equivalents, beginning of year 2,621,121 2,804,419 $ 9,172,622 $ 8,699,570 Cash and cash equivalents, end of year $ 1,567,224 $ 2,621,121

Cash and cash equivalents consist of: Related party transaction (Note 8) Commitments (Note 9) Cash in bank $ 155,041 $ 615,815 Director Temporary investments 1,412,183 2,005,306

$ 1,567,224 $ 2,621,121 Director

48 bcnet 11/12 annual report bcnet 11/12 annual report 49 BCNET BCNET SuMMary oF SiGNiFiCaNt aCCouNtiNG PoLiCieS MARCH 31, 2012 SuMMary oF SiGNiFiCaNt aCCouNtiNG PoLiCieS MARCH 31, 2012 (CONTINUED)

BCNET’s purpose is to provide PrePaid dePoSit oN FiBre ability to pay current and future liabilities riSK MaNaGeMeNt includes maintaining capital to ensure networking services to the research Prepaid deposit on fibre is amortized credit Risk: The Corporation is exposed the Corporation meets its obligations to and education community in British over the term of the service. to credit risk from their customers. its members and associates, and following Columbia and to facilitate the evolution The Corporation performs credit internally determined capital guidelines of the internet in British Columbia. risk evaluation on its customers and reVeNue reCoGNitioN based on risk management policies. consider their risk to be acceptable BCNET Networking Society was incorporated Revenue from the provision of services is recorded upon completion of performance. and appropriately managed. under the British Columbia Society Act on July uSe oF eStiMateS 31, 1995 as a not-for-profit organization. On Performance is considered complete Estimates by management represent an September 25, 2005, BCNET (the “Corporation”) upon service being provided. Future direCtioN oF integral component of financial statements was federally incorporated under the Canada The Corporation follows the deferral prepared in conformity with Canadian StaNdardS For Corporations Act and acquired all the assets method of accounting for revenues and generally accepted accounting principles. The and liabilities of its predecessor organization Not-For-ProFit grants. Restricted funds are recognized estimates made in these financial statements BCNET Networking Society as of April 1, 2006. orGaNiZatioNS as revenue in the year in which related reflect management’s judgements based The Accounting Standards Board has expenses are incurred. Unrestricted on past experiences, present conditions, The accounting policies of the Corporation issued the accounting and financial revenues and grants are recognized as and expectations of future events. Where are in accordance with Canadian generally reporting requirements for NPOs in revenue when received or receivable. estimates were made, the reported amounts accepted accounting principles applied on a Part III of the CICA Handbook. The from the assets, liabilities, revenues and basis consistent with that of the preceding standards to be followed are essentially Deferred grants for capital acquisitions are expenses may differ from the amounts year. Outlined below are those policies the relevant standards from Part II recognized as revenue on the same basis that would otherwise be reflected if the considered particularly significant. for private enterprises plus NPO-only as the acquired assets are amortized. ultimate outcome of all uncertainties and standards in Part III which includes future events were known at the time these the current Section 4400 series of CaSh aNd CaSh eQuiVaLeNtS “Transit” is the Internet traffic financial statements were prepared. standards with minor modifications. Cash and cash equivalents are comprised purchased by BCNET from Internet The CICA has stated that any NPO of the amounts held in the Corporation’s providers on behalf of its clients. FiNaNCiaL iNStruMeNtS could elect to follow IFRS if they bank accounts and mutual funds. “Local Metro Circuits” is the dedicated The financial instruments of the Corporation should so desire. These requirements circuits between BCNET clients and consist of cash and cash equivalents, accounts become effective for the Corporation CaPitaL aSSetS aNd the transit exchanges over which receivables, accounts payable and accrued for the fiscal year beginning April 1, aMortiZatioN network services are delivered. liabilities, and long-term debt. Unless 2012 and the impact on the financial otherwise noted, it is management’s opinion statements is currently being evaluated. Capital assets are recorded at cost. that the Corporation is not exposed to Amortization for general capital assets is CaPitaL diSCLoSure significant currency or credit risks arising provided annually on a straight-line basis The Corporation’s objectives when from these financial instruments. The fair using a three-year useful life. Fibre is managing capital are to continue as a value of the instruments approximates their amortized over a period of ten years. Capital going concern to protect its ability to meet carrying values unless otherwise noted. assets not in service are not amortized. its ongoing liabilities. Protecting the

50 bcnet 11/12 annual report bcnet 11/12 annual report 51 BCNET BCNET NoteS to FiNaNCiaL StateMeNtS NoteS to FiNaNCiaL StateMeNtS MARCH 31, 2012 MARCH 31, 2012 (CONTINUED)

1. CaPitaL aSSetS 2012 2011 “Fibre” refers to certain dark fibre circuits connecting member AccUMULAteD net bOOK net bOOK cOSt organizations that have been purchased VALUe VALUe AMORtIZAtIOn or acquired through Indefeasible Right Capital Assets: of Use (IRU) and lease agreements. 4. deFerred GraNtS General $ 2,890,025 $ 1,744,189 $ 1,145,836 $ 597,043 The deferred grants are As of March 31, 2012, the Corporation 2012 2011 Components restricted for the development has capitalized $2,584,560 of Fibre and support of the Optical costs related to the Saanich Project. CANARIE $ 2,080,590 $ 1,068,109 Fibre 10,730,211 5,547,643 5,182,568 4,877,226 Regional Advanced Network. The project was not fully completed Ministry of Advanced Education 2,563,531 2,893,677 $ 13,620,236 $ 7,291,832 $ 6,328,404 $ 5,474,269 as of March 31, 2012 and therefore no amortization was taken during $ 4,644,121 $ 3,961,786 the year.

2. PrePaid dePoSit oN FiBre 5. deFerred reVeNueS

The Corporation entered into fibre agreements for periods of between ten and twenty years for the use of IRU 2012 2011 Fibres to service its members. The Corporation is amortizing these costs over the term of the agreements. These funds are restricted CANARIE $ 156,570 $ 187,750 for specific purposes and will be amortized into income Other 210,678 151,446 as expenses are incurred. $ 367,248 $ 339,196 3. LoNG-terM deBt The aggregate amount of principal 2012 2011 payments required in each Loan advanced from University of Victoria of the next five years on this repayable in semi-annual installments of $62,642 indebtedness is as follows: including interest of 4.5% per annum, maturing $ 745,186 $ 833,931 March 31, 2019 with a provision to pay down YEAR AMOUNT without penalty 2013 $ 92,783 2014 $ 97,005 Less current portion 92,783 88,745 2015 $ 101,420 2016 $ 106,035 $ 652,403 $ 745,186 2017 $ 110,860

52 bcnet 11/12 annual report bcnet 11/12 annual report 53 BCNET BCNET NoteS to FiNaNCiaL StateMeNtS SCheduLe—eXPeNSeS MARCH 31, 2012 (CONTINUED) FOR THE YEAR ENDED MARCH 31 2012 2011 COST OF SERVICES Circuit costs $ 1,026,600 $ 993,311 Inter-city connections 171,779 224,249 Transit 846,643 1,007,160 IT Projects 18,246 70 2,063,268 2,224,790

STAFFING 6. CaPitaL aSSetS Not 8. reLated Party On April 1, 2009 the Corporation received Administration 74,216 70,195 a term loan from a member. In the current Client services 157,636 146,526 FuNded By GraNtS traNSaCtioNS year term loan principle and interest The Corporation’s investment in capital During the year, the Corporation entered payments totaling $125,284 (2011— Consulting 40,191 38,123 assets is funded either through grants into the following transactions with its $125,284) were made to a member. Co-op students 44,597 45,319 received from CANARIE and from the members: Ministry of Advanced Education, or These transactions are in the normal Green IT 37,950 46,882 course of operations and are measured internally from revenues generated by the Service revenue in the amount of $4,428,250 IT and applications support 145,536 119,448 Corporation. The unamortised balance of (2011—$3,931,818) was received in at the fair market value established and those assets that are funded internally is the normal course of operations. The agreed to by the related parties. Management 184,332 183,455 segregated to reflect the funds committed to Corporation also paid management fees, Technical services 757,314 724,053 cover their future amortization expense. networking fees, rent and meeting costs 9. COMMITMENTS 1,441,772 1,374,001 to member associations in the amount The Corporation has operating lease of $1,037,620 (2011—$1,161,495). EQUIPMENT AND SOFTWARE 7. iNterNaLLy reStriCted obligations totaling $926,141 that extend to September 2029. Amortization 606,882 719,820 Net aSSetS As at March 31, 2012, the Corporation Repairs and maintenance 405,142 332,130 On March 31, 2007, an allocation of had receivables from its members totaling $113,849 (2011—$29,276) The annual payments due for the $1,000,000 was made to be used for 1,012,024 1,051,950 next five years are as follows: risk contingency and future network included in accounts receivable. OPERATING EXPENSES enhancements. To date, $67,325 of the As at March 31, 2012, the Corporation internally restricted funds have been used to 2013 $ 432,450 Audit 16,305 11,000 had payables from its members develop the Disaster Recovery Plan. 2014 $ 104,688 totaling $21,882 (2011—$106,201) Bad debts 30,263 361 2015 $ 89,558 included in accounts payable. Communications 113,049 129,119 2016 $ 69,023 The Corporation acquired capital assets from Insurance 28,200 27,783 2017 $ 46,211 members totaling $331,816 (2011—$nil). Interest 121,039 — Legal fees 112,522 20,944 Miscellaneous 7,958 5,350 Ofﬁ ce 22,833 31,420 Rent 46,941 45,574 Travel and meetings 49,004 52,501 $ 548,114 $ 324,052

54 bcnet 11/12 annual report bcnet 11/12 annual report 55

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