IAOC Call at 10:28 AM EDT, Thursday, September 18, 2008 Participants: Lynn St. Amour [Present] Fred Baker [Not Present] Bob Hinden [Present] Russ Housley [Present] Ole Jacobsen [Present] Ed Juskevicius [Present] Olaf Kolkman [Not Present] Ray Pelletier [Present; IAD] Jonne Soininen [Present; Chair] Marshall Eubanks [Secretary] Greg Kapfer [guest; ISOC CFO] Drew Dvorshak [guest; Senior Manager of Organizational Membership, ISOC] --------- IAOC Call Agenda 1. Approve new Sponsorship Products 2. Review 2009 - 2011 Budget ----- Jonne called the IAOC meeting to order at 10:28 am. 1. Approve new Sponsorship Products The IAD noted that the Budget subcommittee met earlier this week and discussed new sponsorship products with Drew Dvorshak. The goal is to reach a decision accepting these products. Drew gave the following report on the new Sponsorship Products: Marketing them to companies is waiting on acceptance by the IAOC and he has two companies that are waiting to give us money for San Francisco, and he will be working on Minneapolis. We decided to start with 4 products, breakfast, a hospitality suite, snacks and an ice cream social. In the case we are providing breakfast, we have pricing which is individual and also a 20% discount if one sponsor takes all the opportunities. Breakfast is $15K / day or $60K for the week with the discount. The Hospitality Suite would be far away from the meeting areas, to make it clear it is separate. If meeting attendees have time they could go there and hosts could do whatever they want, a happy hour, Hors d'oeuvres, etc. We could have up to 4 now. We do not expect 4 companies to do this, but as we grow this may happen. If 4 companies took this at $25k that would be $100k. We have priced snack breaks at $6K, with a 20% discount for 4. (There isn't one for Friday.) The ice cream social is $5k - that only cost about $2500, so that is a nice margin on that. If we found sponsors for all of these, that would be $387k per year. If we found 1 sponsor for all of these, that would be $552,600 for the year. We expect to refine these prices, depending on the meeting and the interest. If one was a big hit it might make sense to raise the price. Benefits: Meeting program listing comes with everything. That would be a page in the agenda document. If we had a sponsor for, say breakfast, it would say that at the appropriate point in the agenda. Meeting signage will be subject to approval. Promotion on the listserve - there will be reminders that these items are going on. Logo on the IETF Journal. Currently, the only people with this are platinum sponsors and the sponsors of the IETF fellowships. This would come with sponsoring two breakfasts, one hospitality suite, or all 4 days of the snack break. Logo on the meeting page: that is done already. Sponsors need to understand that literature/display area needs to be unobtrusive. We will be looking for a balance there. Discussion followed the presentation. Couldn't have a hospitality suite on Tuesday as it would conflict with the Social; or an ice cream social/snack break on Friday because of the schedule. Drew noted that the hospitality suite would not be just evenings. Perhaps having Tuesday at a lesser price and having them end their event by 6 pm would be best. It was noted that all the sponsor would have to do is to send mail to the attendee's list as it's not filtered. While there was agreement it was felt that behaviors like that on the list would be self correcting. There was concern that the IAOC would be allowing people with the Hospitality Suites to do things we don't allow the host to do. It was noted that the host has been getting the Presidential Suite as a Host benefit, but none of them have really used it as a Hospitality Suite. The comment was made that if it was simply a reception 9t wasn't thought that the attendees would object to that; the IAOC could have a reception every night. Drew said he respected the balance – the IAOC could try and experiment with this as soon as San Francisco. The point vis a vis the host is important. The IAOC does not want to diminish the host's value. Drew noted that the IAOC would, of course, go to the Host first for these products and also whether there was an objection regarding a sponsor, such as having a direct competitor being a sponsor for an even they were hosting. Drew noted that the companies that are interested generally are not the ones sending people to the IETF. The Chair noted he hears general interest, but the Hospitality Suite seems to be the one with issues. He suggested continuing with the others and tabling the Hospitality Suite for now. Discussion ensued about what the Host MoU said. The IAD said that the current MOU does provide for the IETF to obtain sponsors. The IAD was asked to review the MOU language. Jonne moved to approve the new sponsorship products except for the Hospitality Suites. The motion was seconded by Ole. Jonne requested a roll call vote. Lynn St. Amour [Aye] Fred Baker [Not Present] Bob Hinden [Aye] Russ Housley [Aye] Ole Jacobsen [Aye] Ed Juskevicius [Aye] Olaf Kolkman [Not Present] Jonne Soininen [Aye] The motion passed. 2. Review 2009 - 2011 Budget The IAD started the discussion on the 2009-2011 budget by noting that the meetings for 2009 are each on a different continent and that there is a host for each meeting. The purpose of the brief was to provide an overview of the draft budget to date and obtain IAOC feedback. The IAD described assumptions used in the budget for 2009. Attendance is expected to decline 2%, continuing the slide in recent years. However, registration revenue is up 4% due to an assumed 6% fee increase to $675. The hotel commissions are expected to be down because reservations in Japan for the overflow hotels are handled by a Travel Bureau, which is paid from the hotel commissions. New Revenues are expected to bring in $115k for 2009. Expenses are projected up due to more tools work. Increases are $450K totally, including $155K for the capital tools costs and $50K for a part time IT architect. The ISOC contribution is up to $1.8 million with the tools investment. ISOC is also responsible for obtaining the Host meeting space and NOC sponsorships and the New Revenue sponsorships. The assumptions for 2010: no registration increase, a continued decline in paid attendance and a decrease in the RFC Editor cost. Discussion followed regarding the part time IT Architect position. Russ noted that the new database design is slipping already. Basically, there is nobody keeping track of this other than him. Without someone to keep track of this, he believes the IAOC is going to find more surprises. The Chair supports the $50k IT architect position. Russ said he thought it would have to be $150k (if it’s a fulltime person). It was suggested that the IAOC may not make the development timeline. It was noted that attendance is going down but expenses are going up, which is not a good combination. The IAOC has to learn from this; we cannot keep increasing our costs if the revenues are going down. It was noted that there are fairly optimistic ideas for New Revenues, a weak area. A decline in requirements for contributions from ISOC for 2010 was noted. The IAD said it’s because of an expected decline in costs for the RFC Editor; plus there is a drop from expenses and a large increase in New Revenue. The IAOC Budget Subcommittee is meeting every Tuesday. Concern was expressed about expenses going up while attendance drops; costs going up as attendance goes down; New Revenue projections; and the IT architect and the likelihood of it continuing once started. Jonne moved to adjourn the IAOC Committee meeting. The motion passed unanimously and the meeting was adjourned at 11:27 am EDT.