Technology
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Server Virtualization & E-rate
There was a time that it was unclear whether server virtualization products, such as VMWare, were eligible for E-rate.
Today, the rules are clear – virtualization is eligible for servers whose functionality is eligible. Here’s a “simple” example – let’s say that you have an entity with ten servers that you want to “virtualize” on one VM server. The functionality for the 10 existing servers is-- five of them are used for DNS-DHCP and five are used for E-mail. DNS-DHCP and E-mail are fully eligible server functionalities. Therefore, the VM server would be 100% eligible.
In contrast to the simple example, the reality of most environments is that there is a mix of eligible and ineligible servers in use. If the functionality of the 10 servers is – 5 for DNS/DHCP, 3 for file-print, and 2 for applications, the eligibility of the virtual server would be 50% (file-print and application are ineligible functionalities). When applying for funding, the full cost of the virtual server would be “cost allocated.” In this case, if the server cost $10,000 “pre-discount,” rather than requesting a discount on the full $10,000, the applicant would request a discount on the “allocated” $5,000 pre-discount cost.
This may sound complicated, but for entities preparing to deploy virtualization, considerable savings will be realized by leveraging E-rate discounts.
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One-to-One Computing
The cost of a new PC for schools ranges from $500 to $1,000 each. With this kind of cost, the “dream school environment” featuring one-to-one computing, that is, with one computer per student, is unattainable for most schools. For a school of 600 students, for instance, the cost for attaining PC’s might range between $300,000 and $600,000. As end-user devices such as PC’s are not E-rate eligible, this cost cannot be discounted.
But, one-to-one computing can be made affordable using E-rate. The key is to utilize terminal servers. Terminal servers are 100% eligible as long as they perform E-rate eligible functions such as E-mail, Web, or DNS-DHCP (Note: application servers are NOT eligible for E-rate discount). In a terminal server environment, low-cost refurbished computers, capable of all of the functionality of new computers, can be attained at a fraction of the cost of new computers.
Here is a comparison of estimated “traditional” server-PC costs and non-traditional terminal server – PC costs for a “One-to-One” Computing Environment (600 students).
Estimated Traditional One-to-One Costs with new Server and new PC’s
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Description |
Quantity |
Cost Each |
Total Cost |
Cost after E-rate discount (90%) |
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Web/e-mail server |
2 |
$10,000 |
$20,000 |
$2,000 |
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New PC’s |
600 |
$750 |
$450,000 |
$450,000 |
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Total |
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$452,000 |
Estimated Non-Traditional One-to-One Costs with new Terminal Servers
and refurbished PC’s
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Description |
Quantity |
Cost Each |
Total Cost |
Cost after E-rate discount (90%) |
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Web/e-mail servers |
5 |
$42,500 |
$215,500 |
$21,250 |
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Refurbished PC’s |
600 |
$75 |
$45,000 |
$45,000 |
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Total |
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$62,500 |
With so many instructional applications and tools available over the Internet, terminal servers can help make one-to-one computing a reality!
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Get E-rate funding for VOIP – it’s a Slam Dunk!
Any entity participating in the E-rate program, no matter what their discount level, can receive discounts for VOIP. There are 2 ways that this can be funded – under Priority 1, as a recurring service, or under Priority 2, as Internal Connections.
VOIP as a Priority 1 Service. As Priority One, this is the sure-fire way to get funded at any discount level. VOIP service can be sold either by a telecommunications provider, in which case the service is requested under “Telecommunications” or by an Internet Provider, in which case the service is requested under “Internet Access.” In either case, applicants receive a discount for a service in which the VOIP call manager is located off premises. The vendor provides access to the call manager and provides installation and set-up, technical services, etc. If the service is purchased under Telecom, bandwidth needed for VOIP, such as a T-1 line or a PRI, is usually bundled into the price. If the service is purchased under Internet Access, the bandwidth is usually purchased separately. Applicants will not receive a discount on the phone handsets, as these are end-user devices and are therefore ineligible for E-rate. The purchase price for handsets can run from $100 to over $400 each.
VOIP as Priority 2 Internal Connections. As Priority 2, it is not likely that applicants with a discount under 78% will be funded for this. However, for applicants with high discount levels, this approach is worth considering. The main difference (and possible advantage) is that this will be a one-time purchase that results in ownership. As Internal Connections, the call manager will be located on premises and will be connected to the school’s LAN. If additional network drops, switches, etc. are needed to accommodate the VOIP system, these can be included in the eligible items as well, along with installation and set up. Basic training for the entity’s network administrator will be included, so that once the system is installed, the system will be able to be operated in-house. Again, handsets will not be eligible for E-rate discounts.
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