San Diego State University (SDSU) was founded in 1897 and has grown to become a nationally ranked research university. Renowned for its academic excellence, the university is home to top-ranking programs in education, international business, social work, speech-language pathology, biology and public administration. Overall, San Diego State students can choose from 85 undergraduate majors, 75 master’s programs and 14 joint doctoral degree programs and two independent doctoral degree programs.
The University’s Enterprise Technology Services had not revised the rates charged to departments for voice and network services in 20 years and needed assistance with a comprehensive cost analysis of telecommunications, network, SDSU Card, server hosting, server storage, and security services. The University was looking to create a practical and long-term, sustainable, cost recovery model for current and future services.
Working closely with the University, Zahid Masood and Karen Mattis structured a collaborative process addressing the costs for 476 lines of service. There were four processes performed with a defendable audit trail addressing 1) cost for services, 2) activity level by customer groups, 3) peer and market comparisons, and 4) three alternative rate methodologies. Each process step built the foundation for a practical cost recovery method in support of the delivery of ETS services now and in the future. The involvement of stakeholders during each of these major milestones provided them a better understanding of the voice and network services provided by ETS as well as the cost to provision these services.
SDSU was able to recognize true cost of its services and adopt a rate and funding model that offered long term sustainability in the current shrinking state budgets.