Walking The Talk On Openness

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IT Policy in Europe 2010-2013: The Imperative of Walking the Talk on OpennessTrond Arne Undheim, Ph.D.Director of Standards Strategy and Policy EMEA

i2010 unit, DG INFSO, Brussels, 12 March 2009.

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“The internet’s generative characteristics primed it for

extraordinary success—and now position it for failure”

The Future of the Internet and How to Stop It, Penguin, 2008.

Jonathan Zittrain“DG” Oxford and Harvard

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“Dominant players may try to use proprietary standards to lock

consumers into their products or to extract very high royalties, ultimately

stifling innovation and foreclosing market entry by new players.”

Speech at Lisbon Council, 2 Feb 2009.

Viviane RedingDG INFSO

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“Opting for open standards is a very wise business decision indeed”

OFE Breakfast, 10 June 2008.

Neelie KroesDG COMPETITION

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“The Impact of interoperable ICT solutions on the internal market and the European economy are formidable and

have not only brought us out of the recession but have spurred a new era of

individual, regional and global growth”Somewhere in Europe, 2013.

Famous personReputable institution

How ICT Shapes The Overall Economy

Companies say: • Top-line growth, not cost savings, is the primary goal.• “Communicate, communicate, communicate,”

• The companies that are farthest along in their global initiatives tend to have a multiplicity of systems, few of which work seamlessly together.

Source: Leveraging the power of global innovation (February 2009). Briefing paper by The Economist Intelligence Unit, sponsored by Oracle. Available at: http://www.eiu.com/site_info.asp?info_name=oracle_globalinnovation&page=noads&rf=0

EnterpriseEnterprise

ManufacturingManufacturingIndustriesIndustries

RetailRetail

CommsComms

BankingBanking

InsuranceInsurance

UtilitiesUtilities

OthersOthers

Applications

Every IT System Needs An Integration Architecture

EnterpriseEnterprise

PerformancePerformanceManagementManagement

IdentityIdentityManagementManagement

ContentContentManagementManagement

MiddlewareMiddlewareManagementManagement

DatabaseDatabase

Systems Systems ManagementManagement

Technology

Standardization is a tool to grapple with globalization

Standardization sets you free (as SME, individual, government or vertical industry)

ICT is the Top Growth Factor Across Verticals

• Retail• Communications• Financial Services• Professional Services• Public Sector

• …because of the powerful network externalities/spill-over effects

Technology Trends in the Software Industry

…are subject to rapid co-evolution with government, business, customer and consumer demands.

• Service Oriented Architecture (SOA)• Cloud Computing• From Web 2.0 to Business 2.0• Next Generation of the Web (NGW)

• …and standardization and software are inseparable.

Service Oriented Architecture (SOA)

• Services = software building blocks w/open standards• Interface exists independently of the implementation. • Can be built, used and reused upon need.• Integrate across heterogeneous platforms and

applications (HR, CRM, Financial management, Supply chain).

• It is not done: customers ask: How do I get to SOA?

SOA http://www.oracle.com/technologies/soa/index.html

Cloud Computing

• Increasingly web-based computing environment.• Commercial lock-in strategies remain the same.• Makes IT infrastructure more elastic (scale up/down).

• Pricing model still undefined.• Future business/government use to be seen.• Few open standards exist.

Cloud Computing http://www.oracle.com/technology/tech/cloud/index.html

From Web 2.0 to Business 2.0

• Wikis, blogs, and mash-ups within the organization. • Leadership from below, management as attitude to

lead, not as position in a hierarchy.

• Known entities are communicating.• Applications need to be secure and interoperable.• Feedback emerges in-house and from the outside.

See http://www.leadershipfrombelow.com/

Next Generation of the Web (NGW)

• Political will to maintain openness by open standards?• Semantic technologies (XML, RDF, OWL, etc.), that

leverage AI and metadata.– Typical business use: search, Web services, grid computing,

and content management/compliance. Soon much more! – Example: Intelligent internet search: “yacht racing” would

yield America's cup results. • IPv6 will improve the performance of the Internet.

– Currently 1 percent penetration. Needs global scale.

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“The Internet is fundamentally based on the existence of open, non-

proprietary standards.”

Vint CerfFather of the Internet

Future-proof IT policy for the EU? Top 10 Elements

Safeguard the open Internet platform

Seed capital to innovating SMEs

Prove end-user value

Push growth through verticals

Secure open standards across Europe

1 Strong partner ecosystem

Argue efficiency & effectiveness

Make the vision understandable

Embed e-participation

Aim for selective global leadership

2

3

4

5

6

7

8

9

10

R&D for IT applications

Market accessacross sectors

Interoperability (Open standards) Open e-government

From i2010 to E-Union?

• From Web 2.0 to Business 2.0.

• Standards Education• Strategic Programme

on Standardization in Middleware & Applications.

• Climate change apps

• Interoperability of the Internal Market.

• European software strategy.

• Keeping the Internet open.

• Attract talent to EU.

• IT Procurement policy compliance.

• Communication on EIF 2.0 with ex ante assurances and/or default royalty free.

• Recognition of fora/ consortia in EU law.

• Migration strategy for Member States (and e-Commission).

• Launch of real Pan-European services

(from legacy systems to open standards).

• E-participation.

2013

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The Open Internet

• Safeguard the principles that have served us well. • Watch new developments, actors, business models. • Ensure fresh open standards develop and thrive.

European Software Strategy

• Recognize fora/consortia.• Seed capital to innovative SMEs who interoperate.• Disperse standards education and travel funds.• Start IT procurement compliance watch.• Launch strategic R&D programmes on SOA.

Open e-government

• Open up government content—let all make use of it.• Foster policy alignment with benchmarks.• Launch a set of large scale Pan-European e-services

(social services, tax)…underpinned by eID.• Deeply embed e-participation in the structure.• Use standardization as a tool to grapple with

globalization.• Launch IT migration strategy for Member States (and

e-Commission).• Co-evolve all IT strategy through epractice.eu

(mandatory passage points, innovation jams).

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Framework Directive: Interoperability & Innovation

• Emphasize multi-sector interoperability effects.• Set minimum expectations for standards compliance.• Measure IT innovation effects across the economy.

.

Let’s do the math

Interoperability =

Open standards

Let’s do the math

Open standards+

Wide implementation=

Good Business

Characteristics of Open Standards

• Cannot be controlled by vested interests• Transparent evolution process• Platform independent, vendor neutral• Openly published• Available royalty free or at minimal cost (with field of

use and defensive suspension on RAND terms)• Approved through due process, rough consensus

Source: Roadmap for Open ICT Ecosystems, Harvard, 2005 http://cyber.law.harvard.edu/epolicy/

The Benefits of Open Standards

Reduce costsEconomic growthMarket access

Market stabilityAvoid lock-inTransparency

New technologyBetter productsInnovate

Source: The Momentum of Open Standards - a Pragmatic Approach to Software InteroperabilityThe European Journal of ePractice, No.5, 2008 [http://www.epracticejournal.eu/document/5156]

To which a certain industry player may ask

• Who• What • Why• Where• When?

Open Standards Enhance Innovation

• Who?– UC Berkeley economist Hal Varian in Information Rules.– European Commission funded FLOSSIMPACT study.– UC Berkeley sociologist Neil Fliegstein in Architecture of M.

• What?– Innovation is whatever action an organization values highly.

• Why?– Enables sustainable innovation on top of agreed platform.

• Where?– In every well-functioning market – supported by institutions.

• When?– Whenever standards create new business (PDF, ODF, XML).– The Internet itself is the best example (HTTP, TCP/IP).

Open Standards Avoid Lock-in

• Who?– Repeated attempts at platform monopoly.– All other software players work against this practice.

• What?– Collaborative interfaces between technologies.

• Why?– Unsustainable in the long run. Hurts markets. Unfair.

• Where?– Developed in 500+ consortia – W3C and Oasis.

• When?– Whenever competing standards are avoided.

Open Standards Reduce Costs

• Who?– Industry analysts like AMR, Forrester, Gartner, & IDC agree.– 1/3 of an average IT budget is spent on integration.

• What?– Standards drastically reduce integration costs.

• Why?– Business standards are unorganized. Too many, too

complex.• Where?

– Our acquisition of BEA systems – integrate, don’t shut down. – Oracle Fusion Middleware – connecting technology pieces.

• When?– Whenever businesses must collaborate. All business should.

The Openness Continuum

W3C OASIS ISO Open Social Single-vendor

ODF Flash OOXML DocX

Government Paved The Path Towards Openness

Adobe (PDF) PDF/A ISO (PDF) 3rd party implementations

Adobe: “government demand played a part”

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The Ideal Software Standards Ecosystem

Global

Royalty free Disclosed ex ante

• Healthy process

• Non-RF as the exception

• Certainty• Late disclosure as

the exception

• Wide implementation• Actual interoperability

Open

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“In the software business, supporting open standards is the best way to

ensure interoperability. The result is lasting innovation effects, across the

economy, in all markets“ Trond’s Opening Standard http://blogs.oracle.com/trond

Trond Arne Undheim, Ph.D.Oracle Corporation

Walking the talk on openness means real measures to push open standards-based interoperability across the European value chain—in all verticals.

Bibliography

• Cloud Computing http://www.oracle.com/technology/tech/cloud/index.html

• Europe http://www.oracle.com/global/eu/oracle-europe/index.html • EU R&D http://www.oracle.com/global/eu/rd/index.html

• SOA http://www.oracle.com/technologies/soa/index.html

• Standards http://www.oracle.com/technologies/standards/index.html

• Trond’s Opening Standard http://blogs.oracle.com/trond • White Papers http://www.oraclewhitepapers.com/