Structural Funds for e-Infrastructure development:
opportunities and challenges
Lajos Balint, NIIFI/Hungarnet
<lajos.balint@niif.hu>
TNC BoF on Using Structural Funds
in the domain of Research and Education Networks:
Past experience and Future prospective
Dublin, 19 May 2014
A bit of history
Nemzeti Információs Infrastruktúra Fejlesztési Intézet
2007-13: FP7 50 B€ + SF slowly entering RI
(HU: ~20 M€ for e-RI)
2011-12: Horizon2020 (FP8!) / MFF preparations:
”RI funding by SF only (!)”
Background: SF serves infrastructure developments
(road, rail, energy … infocomm.)
2013-14: joint handling of R&D and RI –
– harmonised FW + SF (ESIF) funding
~80 B€ Horizon2020 + ~100 B€ SF! (7 years)
Umbrella / framework: ERA
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF
2014-2020
status:
Nemzeti
Információs Infrastruktúra Fejlesztési Intézet
e-Infrastructure is key component of the
European Research Area
(mobility, openness, RI, joint programs, global hub …)
Distributed / integrated resources in the ERA
(humans, funds, tools, info)
Exceptional role of e-Infrastructures (glue):
e-RI → RI → R → R&D → R&D&I → Competitiveness …
Widely recognised role, function, importance !
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF
Supportive Nemzeti
treatment
– chances
of sustainability
Információs
Infrastruktúra
Fejlesztési Intézet
e-Infrastructures: high priority (both EU & MS) !
(but still low R&D spending wrt. GDP levels)
Cost side: Maglaris model - 1:10:100
(100M€ … 1B€ … 10 B€ / yr in RN!)
(~20% CAPEX and ~80% OPEX: good assumption)
Financial resources:
Horizon2020 + SF + MS funds + PPP + users
Scenarios: weakening – sustaining – strengthening
Sustainability: by strengthening only = fly or die
(political / legal / technical + organisation + expertise + funding!)
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF
Some remarkable
figures
Nemzeti Információs
Infrastruktúra Fejlesztési Intézet
MFF plan vs. Maglaris assumptions (0,1 : 1 : 10 B€ / yr)
(business model needed: costs & resources levels / structure)
Assumption here:
<2% Horizon2020, <20% MS, >80% SF, <2% PPP for RI
MFF: SF / yr ~ 100 B€ / 7 ~ 15 B€ RI → 5 B€ e-RI → 1,5 B€ RN
e-RI / RI ratio (FP7): 0,57/1,72 B€
RN / e-RI ratio (FP7): 27% (HPC 37%, VRE 15%, Data 21%)
Compare 1,5 B€ / yr SF for RN with Maglaris’ 10 B€ / yr cost:
SF covers 15% of full annual RN cost: close to ”optimum”
(Optimum is around 20 / 80 % in case of 4-5 years life-span)
(Difference to be covered by Horizon2020, MS, PPP funds)
Practice: somewhat different but can be improved! (eg. NIIFI)
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF
The NIIFI case
Nemzeti Információs Infrastruktúra Fejlesztési Intézet
NIIFI developments on SF basis in 2009-2012 ~ 20 M€
• DWDM on DF
• HPC
• Cloud
• Storage
• VC
• middleware …
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF
The NIIFI case
the figures
Nemzeti–Információs
Infrastruktúra Fejlesztési Intézet
NIIFI case: (~ 1 % of everything):
→ 150 M€ / yr SF for RI from MFF assumably available
→ ~50 M€ / yr for e-Infrastructure, ~15 M€ / yr for RN
NIIFI e-RI development projects on SF basis (e-RI !):
Finished (2009-12): ~2 x 10 M€ (e-Infrastructure, Edu applications)
Running (2014-16): ~2 x 5 M€ (HPC/1, Edu applications)
Coming (2015-18): ~4 x 10 M€ (EduCloud, HPC/2, DCH, Edu apps…)
Maglaris model: NIIFI ~1M€ / yr GEANT → ~ 100 M€ / yr RN
(i.e.VM on NIIFI / yr: 20 M€ CAPEX + 80 M€ OPEX in RN, 3x in e-RI)
Successful period – but not yet exploiting the opportunities! (< 50 %!)
Fast widening/expansion is needed! (not only in Hungary)
Problem: expert workforce (developer, operator, broker, advisor …)
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF
Conclusions:
Nemzeti Információs Infrastruktúra Fejlesztési Intézet
Funding e-RI development: no more a bottleneck !
NRENs should discuss:
- how to best exploit the SF opportunities
- how to convince / motivate MS governments
NRENs should consider:
- Vertical & horizontal extension: increasing SF need!
- Greening, innovation, PCP: also increasing SF need!
Specific issue wrt. EC rules on regional use of SF:
higher priority of convergence regions
Major issues needing NREN move:
expert workforce + business model + CAPEX / OPEX issue
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF
Closing comments:
Nemzeti Információs Infrastruktúra Fejlesztési Intézet
• Some figures may somewhat be incorrect
• There are a lot of question marks (eg. MS attitudes)
but
• Attractive opportunities – demanding challenges …
• A new situation: no lack but abundance of funds
• A promising future …
Are we ready?
Let’s try to do our best to exploit the SF option –
for the benefit of the widest possible community !
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF
Explanatory
addition
wrt.Infrastruktúra
NRENs’ opportunities:
Nemzeti
Információs
Fejlesztési Intézet
A Summary Table of the annual rough averages [M€]:
GÉANT
RN
e-RI
RI
Maglaris
100*
10 000*
Horizon2020
40
(40)
SF
1500**
NIIFI
1
15
120
400
5000**
15000
50
150
* OPEX included
** NRENs to estimate their share – and start planning / negotiating …
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF
Last minute
addition
on the
OPEX issue:
Nemzeti
Információs
Infrastruktúra
Fejlesztési Intézet
”Broadband State-Aid Rules …” (DG-CNECT / wik draft):
”[SF (ESIF)] … to cover (part of) the end users’ costs of
installation or purchase of broadband devices, or of
monthly subscription … [de minimis: <66 K€ / user / yr]”
A tool for transition to a good business model?
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Structural Funds for e-Infrastructure developments – TNC’2014 BoF