Information Technology Benchmark (ITB)

Data-Collection Instruction Guide

Wide Area Data Network

Version 2.6

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 General Definitions

Wide Area Data Consensus Cost Model

Frame
Relay
Satellite NCC Network CPU
(CMC)
Switches
Leased Lines

PACKET
T1 MUX
Central Gateways/
Protocol Converters
Network
Equipment Dial Data
Microwave
FEPs
Central & Remote

Multiplexors
Vans

Modems Intersite
Router Network Management
CSU/DSU
Bridge Software
Personnel
Tactical & System Software & Operations Management and
Strategic Change and Administration
Planning Management Help Desk

Very often networks are made up of multiple physical and logical layers providing different functionality.
Components in each layer can be used to create networks specialized in providing one type of service.
For example, multiprotocol network bandwidth and SNA network bandwidth could be provided by a single
T1/T3 or E1/E3 network infrastructure. This common infrastructure could be made up of resource
managers providing lower-speed interfaces to other network applications (e.g. voice, video, etc.). This
analysis seeks to capture information relative to the costs and deployment of such common infrastructure
components and the efficiencies derived by each covered networking type from the use of common
facilities, services and negotiated contracts.

Two types of networks are distinguished in the analysis: hierarchical and multiprotocol (peer-to-peer).
Hierarchical networks are host-centric, that is, all traffic flows between one (or more) mainframes and
end-user devices in a point-to-point or multipoint configuration. SNA or Poll / Select type networks fall
into this category. In a multiprotocol network, which is network-centric, traffic flows through bridges,
switches, or routers in multiple directions. All devices can communicate through the network using a
variety of protocols. TCP/IP networks fall into this category. These networks may also provide terminal-
to-host communication by encapsulation or other techniques.

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 General Definitions, continued
Wide Area Data Workbook

The workbook is comprised of one spreadsheet: Wide Area Data. In Wide Area Data, we will collect
information pertaining to workload, cost and personnel for your wide area data network.

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 Wide Area Data

The Wide Area Data work sheet will define the workload, cost and personnel components of your
analysis. This will be used to select the comparison group and will be balanced against your costs to
determine your overall efficiency metrics. Workload profiles are defined by sites, devices able to
originate and / or terminate traffic across the wide area network (WAN), and the traffic load carried by the
WAN.

Identify the currency for the costs you are entering on the Currency line at the top of the spreadsheet.

1. Workload Definition – Number of Sites (Row 1; Columns A, C and E)

Report the number of hierarchical sites in Row 1, Column A; multiprotocol sites in Row 1, Column C and
other sites in Row 1, Column E. A site is defined as a single organization facility located on a
continuous piece of property that is not crossed by a public thoroughfare. This is the demarcation
point where the wide area network (inter-site) ends and where local, or premise-based, (intra-site)
services begin. A site with separate physical connectivity to each network should be counted for both
environments.

2. Workload Definition – Number of Devices (Row 2; Columns A, C and E)

Report the number of hierarchical devices in Row 2, Column A; multiprotocol devices in Row 2, Column C
and other devices in Row 2, Column E. Devices are those types of equipment that may either
originate and / or terminate traffic across the WAN. This category includes, but is not limited to,
physical terminal types, printers, desktop computers, workstations, servers, gateway sessions, dial-
up ports, midsize computers, mainframe computers and super computers.

Devices are classified by how their traffic moves through the network (i.e., hierarchical or multiprotocol).
No device may be counted twice (questions in this area should be resolved with your KPMG LLP
Analyst) regardless of its ability to pass traffic on more than one network. For example, the devices
connected to a cluster controller whose traffic passes through a router will appear in the multiprotocol
device count. This is due to the fact that these devices are generating traffic on the multiprotocol
network. Devices that are connected to a cluster controller whose traffic passes through the
hierarchical network will appear in the hierarchical device count.

3. Workload Definition – Traffic (Row 3; Columns A, C and E)

Report the number of gigabytes for an average month transmitted across the hierarchical network in Row
3, Column A; multiprotocol network in Row 3, Column C and other networks in Row 3, Column E.
Data traffic excludes all video and voice applications even if they are digitized and transmitted
through a network. Protocol overhead as well as polling and acknowledgments, however, are
included.

As in the case with devices, traffic must only be counted once. Therefore, if you have both hierarchical
and multiprotocol networks, you must be sure to reduce the hierarchical traffic measurement by an
amount equal to the that of host-bound traffic carried by the multiprotocol network.

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 Wide Area Data, continued
When counting the network traffic on a hierarchical (SNA) network, include both inbound and outbound
traffic measured at the host FEP level. Traffic is measured in megabytes using standard counters in
the FEP. This can be done through the software such as NetSpy, etc. Actual data volumes are
desired. If this is not available, measure over a one-week period during a "typical" workweek (defined
as 7 by 24). Multiply the resulting number by 4.33 to obtain an estimate of monthly traffic. Describe
the methodology used to determine the volume. You must be sure to reduce the hierarchical traffic
measurement by an amount equal to the that of host traffic carried by the multiprotocol network and
completed via the FEP.
0
0When counting the network traffic on a multiprotocol network, include all network-generated data traffic
on the WAN serial link registers on the routers. Since this will include traffic from both input and output
registers, divide the total by two. Actual data volumes are desired. If this is not available, measure a
one-week period during a “typical” workweek (defined as 7 by 24).
0
1. Workload Definition – Percentage of Redundancy (Row 4; Columns A, C and E)
0
0Report the percentage of bandwidth reserved for redundancy for the hierarchical network in Row 4,
Column A; multiprotocol network in Row 4, Column C and other networks in Row 4, Column E. Some
amount of redundancy is usually built into most data networks to ensure continued network availability
during circuit failures. This is bandwidth that is reserved for the rerouting of traffic from failed circuits,
links or equipment.
0
1. Workload Definition – Percentage of Availability (Row 5; Columns A, C and E)
0
0Report the percentage of availability your network is designed to achieve for the hierarchical network in
Row 5, Column A; multiprotocol network in Row 5, Column C and other networks in Row 5, Column E.
This should include downtime for scheduled maintenance procedures. Given the business requirements of
your enterprise, you must design your network for a required (or expected) level of availability (for example,
99.5% availability, 7x24).
0
1. Cost Definition – General
0
0KPMG LLP uses fully burdened costs when defining costs for the consensus cost models. Include the
lease, maintenance and depreciation costs of all hardware, software or shared hardware and software
used by the wide area data network staff for the analysis time period. In all cost categories, include all
applicable taxes (federal, state and local). Include value-added taxes (VAT); only exclude VAT when it is
recovered or refunded to the organization. All costs are reported in thousands.
0
0The depreciation schedule used and the tax rates borne by your organization are reported in the ITB
Project Definition and Information Questionnaire.
0

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 Wide Area Data, continued
1. Cost Definition – Hardware (Row 6; Columns B, D and F)
0
0Report the annual monetary expense related to hardware for the hierarchical network in Row 6, Column
B; multiprotocol network in Row 6, Column D and other networks in Row 6, Column F. Include costs for
modems, CSU / DSU, dial backup, protocol converters, T1/E1 muxes, packet switches, PADs and
FRADs, routers, font end processors, etc. Also include the costs of dedicated CPU for communication
management control (CMC). A network CPU is a CPU with functional responsibility to run the network to
allow network devices to access applications on CPUs. This is not a network administration function but
is true dedicated communication management control.
0
1. Cost Definition – Software (Row 7; Columns B, D and F)
0
0Report the annual monetary expense related to software for the hierarchical network in Row 7, Column
B; multiprotocol network in Row 7, Column D and other networks in Row 7, Column F. Include VTAM
and all software running on FEP, switches, routers and other wide area data hardware. This also
includes software for network management (e.g., netview) and measurement (e.g., NetSpy).
0
1. Cost Definition – Circuits (Row 8; Columns B, D and F)
0
0Report the annual monetary expense related to circuits for the hierarchical network in Row 8, Column B;
multiprotocol network in Row 8, Column D and other networks in Row 8, Column F. Circuits generally
consist of leased lines, from 2.4KBPS to T3/E3, point-to-point and multipoint, frame relay, VAN
connections, satellite space segments, the allocation of shared backbone facilities and dial data services.
0
0To determine the costs for a long distance carrier, local exchange carrier or PTT, alternative access
provider, proprietary facilities or terrestrial, use the percentage of total in-use bandwidth that is used to
carry the traffic for this network. Multiply percentage times total cost of these facilities to yield the
applicable cost.
0
0To determine the costs for microwave (either owned or leased equipment), determine the total
bandwidth designated for carrying data traffic on the network. Divide by the total in-use bandwidth of the
microwave facility to yield a percentage used for each data network. Multiply the percentage times the
total cost to determine the cost applicable to each data network.
0
0To determine the costs for satellite (either owned or leased) equipment, determine the total bandwidth
designated for carrying data traffic on the network. Divide by the total in-use bandwidth of the satellite
facility to yield a percentage used for each data network. Multiply the percentage times the total cost to
determine the cost applicable to each data network.
0
0Internet access refers to the ability to connect to the global Internet and access various servers and
applications. Internet information is developed independent of other transport elements. Please ensure
that all Internet-related ISP access costs are included.
0

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 Wide Area Data, continued
1. Cost Definition – Occupancy (Row 9; Columns B, D and F)
0
0Report the annual monetary expense related to occupancy for the hierarchical network in Row 9,
Column B; multiprotocol network in Row 9, Column D and other networks in Row 9, Column F.
Occupancy costs should include fully burdened costs for the facility. Some examples would include office
space, furniture, electricity, maintenance, property taxes, security, office supplies, etc.
0
1. Personnel Definition – General
0
0KPMG LLP uses the Full Time Equivalent (FTE) concept in defining staff resources. Do not count the
physical staff but count the logical staff by looking at the functions that the physical staff perform and for
which they are responsible. FTEs should be measured in calendar time, that is, if an individual works full
time on an assignment for a full year, that is one FTE. You would not subtract vacation time, sick days,
administration time, etc. If your labor-tracking system shows, for example, 220 days actually worked,
that represents one FTE in your organization. The conversion factor you use to go from hours or days
into FTEs depends upon the amount of overhead time, how you record overtime, and the way you enter
data into your tracking system. Do not count any one physical person as more than one logical person
(due to overtime, etc.) However, you may count less than one logical person for a physical person when
not all of that individual’s time falls within the scope of this analysis.
0
0Report all staffing levels within the organization from managers and project leaders to daily operations
personnel. Report summarized data for all categories to show the average staff level, adjusting for
timing. This is done best by totaling the person-months for staff employed during the year and then
dividing by 12.
0
0Report the actual monetary expense related to in-house staff, contractors and consultants utilized during
the analysis time period for all of the staff functions reported.
0
0For in-house staff, in addition to salary include bonuses and paid holidays and vacation. Also include
benefits such as costs for medical / dental coverage, life and accident insurance, retirement plans, stock
plans, disability, social security, unemployment compensation, dependent care, tuition reimbursement
and employee assistance programs (physical exams, exercise programs and similar costs). In all cost
categories, include all applicable taxes (federal, state and local). Include value-added taxes (VAT); only
exclude VAT when it is recovered or refunded to the organization.
0
0Also include “other” employee costs such as travel and training.
0
0Do not include the costs related to human resource department staff allocations, early retirement
incentive bonuses, internal "cross-charges" for corporate overhead such as for the chairman's salary or
the human resources department.
0
0For contractors and consultants, include all compensation that was paid directly to the individual or
agency.
0
1. Personnel Definition – Management and Administration (Row 10; Columns A, C and E for
FTE Count and B, D and F for FTE Cost)
0

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 Wide Area Data, continued
0Report the total FTEs in Row 10, columns A, C and E and the annual monetary expense in Row 10,
columns B, D and F for management and administration for the hierarchical network, multiprotocol and
other networks. This is the staff responsible for personnel and all, or parts of, the telecommunications
function. Include time spent managing vendors and intra-organization relations as they affect systems
and services. Also include staff responsible for the budget, acquisition and chargeback related to the
services and systems provided by the department. Personnel assigned to tracking of assets / inventory
and any support services, i.e., secretarial, clerical, etc., would be included herein.
0
1. Personnel Definition – Strategic and Tactical Planning (Row 11; Columns A, C and E for FTE
Count and B, D and F for FTE Cost)
0
0Report the total FTEs in Row 11, columns A, C and E and the annual monetary for strategic and tactical
planning for the hierarchical network, multiprotocol and other networks in Row 11, columns B, D and F.
This is the staff responsible for reviewing, analyzing and optimizing existing systems and services. They
forecast the impact of new services and measure the impact once the change is implemented. They are
responsible for researching, analyzing and recommending new technologies and services to be
integrated into the existing systems and services. In addition, they forecast the needs of the enterprise
and select the appropriate platform(s) for meeting future requirements.
0
1. Personnel Definition – Operations (Row 12; Columns A, C and E for FTE Count and B, D and
F for FTE Cost)
0
0Report the total FTEs in Row 12, columns A, C and E and the annual monetary expense for operations
for the hierarchical network, multiprotocol and other networks in Row 12, columns B, D and F. This is the
staff responsible for maintenance activities, monitoring of the day-to-day overall efficiency and the
continuous performance evaluation of installed systems and services. In addition, this includes
engineering functions, as appropriate, as well as first-, second- and third-tier “problem / trouble” resolution.
Also include all staff responsible for all processes associated with adding, deleting and changing system /
service components, covering every step of the process from receipt of request to service order to
procurement to scheduling to tracking to physical adds, moves and changes. Large-scale projects
requiring project management are included herein.
0
1. Personnel Definition – System Software (Row 13; Columns A, C and E for FTE Count and B, D
and F for FTE Cost)
0
0Report the total FTEs in Row 13, columns A, C and E and the annual monetary expense for system
software personnel for the hierarchical network, multiprotocol and other networks in Row 13, columns B,
D and F. This is the staff responsible for support of network management products, routing software, etc.
0

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 Wide Area Data, continued
1. Personnel Definition – Outsourcer (Row 14; Columns B, D and F for Cost)

Report the annual monetary expense in Row 14, columns B, D and F for outsourced functions for the for
the wide area data environment. This is supplemental staff not managed on a day-to-day basis by
the organization in which control of individual function(s) has been given to a third party.

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