What we need the money for (June 2007)
- 1 Day to day operational expenses
- 2 Goals for Hardware (June 07 = $1,670,000 capital expenditure)
- 3 Goals for Bandwidth (June 07 = $62,000/mo up to $100,000/mo)
- 4 Goals for hosting and operations (June 07 = $27,000 setup; $38,000 hosting/mo)
- 5 Goals for Hiring (June 07 = $100,000/mo)
- 6 Goals for Project Specific Expenditures ($300,000)
- 7 Retained revenue
Day to day operational expenses
The de facto monthly budget for regular expenses is about $75,000. It breaks out like this:
|Professional fees legal/audit||6,000|
This constitutes the existing regular day-to-day operational budget items each month (close but imprecise).
Warning: servers purchases are not expenses.
Goals for Hardware (June 07 = $1,670,000 capital expenditure)
Per earlier budget discussion document, that the board endorse the middle option, for $1.67MM. This involves increasing our inventory of servers by another 300 machines around February ($834,000) and another 300 ($834,000) in June. This will constitute the most significant expenditure of the Foundation this fiscal year. From whom to purchase the servers (and precisely what, rather than proportions) is a matter in need of further discussion amongst Tech.
Goals for Bandwidth (June 07 = $62,000/mo up to $100,000/mo)
We are presently investigating the costs for additional bandwidth. If we go up to a 10GB capacity, we can reasonably expect to have at least a $50,000 bandwidth bill (1Mb @ $10 at 50% capacity), unless we are able to negotiate a lower rate. Phased in, we are still looking at an additional minimum commit of $30,000 per month, raising our monthly regular budget up by $18,000 (minimum), and more likely an additional $50,000 (total of $62,000). Monthly budget for expenses including bandwidth in June, 2007 up to $137,000. We also need to recognize that our upward growth cannot be indefinite; we may reasonably slow our growth and/or plateau at this level. Although we are an integral part of Kennisnet's plan and will continue our partnership with them, other costs associated with equipment and operations are important to consider.
Goals for hosting and operations (June 07 = $27,000 setup; $38,000 hosting/mo)
At present rates, the addition of another 4 cages worth (20 racks) will amount to $1900 each plus $1350 setup costs. This brings the total monthly regular expenses up to $175,000.
Goals for Hiring (June 07 = $100,000/mo)
Several positions are currently under discussion, including a permanent CEO, a CTO, chapter liaison, several developers and possibly others. Details will not be given here, but generally, prospectives for hiring should make the total payroll goes up from $32,000 to $100,000.
Goals for Project Specific Expenditures ($300,000)
The board should budget for major categories of project work.
- Wikimania 2007
- Wikisummit 2007 - 20 people (max)
- Various gathering, project support ...
Goal of increasing cash reserves to at least 3 ($875,000), preferably 6 months ($1,650,000) of operating expenses for fiscal security per recommendation of auditors.