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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Hey All,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">I have been following this conversation although not closely. My suggestion would be the following.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">In the formation documents including the contract between PTI and ICANN we specify the following budgetary forms:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo1"><![if !supportLists]><span style="font-size:11.0pt;font-family:Symbol;color:#1F497D"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Category 1: The IANA Operational Budget<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-size:11.0pt;font-family:"Courier New";color:#1F497D"><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">This is the KTLO (Keeping the lights on) budget used to deliver the current IANA services. Mostly this would be an OpEx budget.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-size:11.0pt;font-family:"Courier New";color:#1F497D"><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">This budget can be baselined and increased at a percentage above inflation or some other useful measure if needed (Not sure if that is needed)<o:p></o:p></span></p>
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<![if !supportLists]><span style="font-size:11.0pt;font-family:"Courier New";color:#1F497D"><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">ICANN could be compelled to provide this budget as part of its arrangement with the PTI<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo1"><![if !supportLists]><span style="font-size:11.0pt;font-family:Symbol;color:#1F497D"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Category 2: The IANA Projects Budget<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-size:11.0pt;font-family:"Courier New";color:#1F497D"><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">This is the standard normal business projects such as the updating of software, hardware replacements like the HSM replacements recently. This would
likely be OpEx focused but include some CapEx.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-size:11.0pt;font-family:"Courier New";color:#1F497D"><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Again this can be a baselined amount as its likely some internal project work will always be going on in IANA with regards to continuous imprement.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo1"><![if !supportLists]><span style="font-size:11.0pt;font-family:Symbol;color:#1F497D"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Category 3: The IANA Special Projects Budget<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-size:11.0pt;font-family:"Courier New";color:#1F497D"><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">This can be set at a nominal figure. If a single project is forecasted at over [x]m USD then it is considered a ‘Special Project’ and could possibly
go through some form of community review?<o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="font-size:11.0pt;font-family:"Courier New";color:#1F497D"><span style="mso-list:Ignore">o<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">I would think that requests of this nature would be CapEx focused.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Not sure if that’s a workable solution to get a stable planning and forecasting solution in place while maintain some cost control ability, I have yet to finish
my coffee this morning!<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">-James<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif""> cwg-stewardship-bounces@icann.org [mailto:cwg-stewardship-bounces@icann.org]
<b>On Behalf Of </b>Greg Shatan<br>
<b>Sent:</b> Thursday, June 04, 2015 4:28 AM<br>
<b>To:</b> David Conrad<br>
<b>Cc:</b> cwg-stewardship@icann.org<br>
<b>Subject:</b> Re: [CWG-Stewardship] DT-O recommendations/responses for Public Comment Review Tool<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">David,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">Thanks -- that's very helpful. I'm not surprised that IANA staff has been directly involved in development and innovation for the systems that the IANA staff uses; that makes perfect sense. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">The examples that were given earlier, though, were DNSSEC and IPv6, where I expressed skepticism that these were the result of R&D carried out by the IANA staff (which is not to say they
were completely uninvolved). Perhaps they were just inapposite examples. More on-target examples, such as the ones you gave, might have taken this exchange down a different path (or no path at all).<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">In terms of budgeting for the near future,
<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif"">it sounds like
</span><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">appropriate funds would need to be allocated<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif""> for development and innovation by PTI,</span><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">due to <o:p>
</o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif"">(1)
</span><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">the plan "to impose a vast array of new service level requirements for the IANA functions (and not just naming-related functions) that will need to be monitored", since "In order to meet
these new requirements, non-trivial amounts of software development will" need to "be undertaken directly by IANA staff"<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif""> and (2) the replacement of aging systems.
</span><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif"">My overall takeaway then is:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif""><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">1. PTI, as a separate corporate entity housing the IANA staff, will need a discrete budget.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">2</span><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif"">. ICANN will also need to budget for IANA-related expenses and activities
carried out by employees and resources other than the IANA staff, since these will remain within ICANN (the "corporate parent").<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif"">3. PTI will need to budget for development and procurement relating to replacing aging software systems and to meeting any new requirements
put in place as part of the transition, and for any other expenses relating to changes to the IANA staff's technical environment.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Verdana","sans-serif"">4. ICANN will also need to budget for R&D relating to innovations relating to inputs to the IANA function (along the lines of DNSSEC and IPv6), which are not developed primarily by IANA
staff.<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif"">Greg</span><span style="font-family:"Arial","sans-serif""></span><span style="font-family:"Verdana","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">On Wed, Jun 3, 2015 at 10:58 PM, David Conrad <<a href="mailto:david.conrad@icann.org" target="_blank">david.conrad@icann.org</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">Greg,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">Apologies for the slow response — a bit buried in stuff right now.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Verdana","sans-serif";color:black">I'm going on what Suzanne said, which is that the consulting that has been done to date to support IANA was "not undertaken directly by IANA staff."
<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">I'm not sure that's accurate.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">Historically, perhaps the largest expenditure related to IANA in its history was the development of the facilities and processes necessary to DNSSEC-sign the
root. This was definitely undertaken directly by IANA staff and it was millions of dollars in both capex and opex (and I believe continues to be a very significant opex outlay — those two secure Key Management Facilities are expensive, but Elise or Xavier
would know for sure). <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">There was also the development of the Root Zone automation, which was performed, in part, by IANA staff (or contractors employed at the direction of IANA staff).
On going updates and modifications to that system, and in particular, changes necessary to match whatever the community comes up with for the future of root management will be at the direction of IANA staff.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">In addition, there are a number of aging software systems currently in use by IANA staff that are (or were) slated to be replaced, e.g., the PEN request/management
system.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">Looking forward, the community appears to want to impose a vast array of new service level requirements for the IANA functions (and not just naming-related functions)
that will need to be monitored. In order to meet these new requirements, non-trivial amounts of software development will be necessary. Presumably this would be undertaken directly by IANA staff.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">So while I might agree that research-related expenditures are "not undertaken directly by IANA staff", I do not think it accurate to state development is not
undertaken by IANA staff.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">Regards,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:black">-drc<o:p></o:p></span></p>
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