Karim Baïna (ENSIAS) talk in Software freedom day about Foss as it & biz strategy for emergent coutries - Moroccan case study

(CC) Prof. Karim Baïna, ENSIAS at « SOFTWARE FREEDOM DAY CASABLANCA 2012 », September 22nd 2012

Free and Open Source Software(FOSS)

asan IT & Biz Strategy

for emergent countries

Prof. Karim Baïna

Responsible of Alqualsadi research teamon Enterprise Architecture

ENSIAS, Mohammed V Souissi University, Rabat, Morocco

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« no national government, if it had alternatives, would have chosen

during the 20th centuryto accept dependencefor steel or petroleum

on single or small number of suppliersbased in another nation »

Steven Weber, 2003.

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Outline

1.Introduction

2.Opportunity study of FOSS adoption

3.FOSS as a IT strategy

4.FOSS as a Business strategy

5.FOSS : an IT strategy leveraging for Business strategy

6.Emergent countries and FOSS adoption

7.Current situation of Morocco in terms of FOSS

8.Morocco – some recommendations

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Introduction –Business/IT Strategy

Adapted by Preston Coleman et al., 2006 from Henderson & Venkatraman (1990)

functional integration

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http://www.strategic-alignment.com/

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Introduction – Business/IT Strategy: Alignment Perspectives

Adapted by Preston Coleman et al., 2006 from Pap (1995)

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Introduction – Business/IT Strategy: Alignment Perspectives

Adapted by Preston Coleman et al., 2006 from Pap (1995)

Open Reflection Homework :

● Consider FOSS as1.Simple Software Components within IT Infrastructure2.IT Strategy3.Business Strategy

● And imagine its impacts on other perspectives.

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Introduction – Business/IT Strategy : Enterprise Architecture

Adapted by Preston Coleman et al., 2006 from Henderson & Venkatraman (1990)

functional integration

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http://www.strategic-alignment.com/

Strategic Planning on Biz & IT Infra :Enterprise Architecture

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Alqualsadi research team Enterprise Architecture, Quality of their Development and Integration

Alqualsadi* research team stands for : Enterprise Architecture, Quality of their Development and Integration

* is Abou Al Hassan ibn Ali ibn Muhammad Alqualsadi (1412-1486) : Arithmetics, Algebra, Astronomy (father of X and √ symbols)

GAP

Gap

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FOSS as a Business opportunity for governments & private sector

● Budget economy (particularly during current economic crisis)

– Save foreign currency

– Make software affordable

– Reduce IT budget (CAPEX) in the cost model

● Economic development

– Develop a « real local software industry » in the IT sector with new business opportunities & models

– Develop Regional markets

● local context, specific functional requirements, languages.

– Exploit indirect revenues of FOSS services

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FOSS as a Business opportunity for governments & private sector

● Equity : Strengthen local brands and build brand equity

● Education & Human ressources :

– Develop Regional HR capacity building more qualified than off-shoring point of view

– Raise mind share

● Governance :

– Improve effectiveness & efficiency

– Minimise country/enterprise IT business model dependence to commercial monopoly of an elite group of suppliers (e.g. In IT sector : proprietary software retailers with editors)

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FOSS as an IT Opportunity for governments & private sector

● IT Governance

– Manage definitely IP rights & licences (GPL, LGPL...) establishing open source strategy rather than tolerating software piracy

– Let the licence price (if applicable) a secondary decision criteria for the « build-versus-buy-or-integrate your self » questions

– Minimise country/enterprise IT infrasctructure dependence to commercial monopoly of an elite group of suppliers

– Share IT risks, ressources/knowledge, value/successes, performances with the world wide open community

● IT Reliability

– Keep faults/bugs correctable rapidly by the users (editor bug patchs may take months !)

● IT Security & autonomy

– Keep algorithms tranparent to the users

● eg. governments, such as China, perceive proprietary software’s hidden protocols as threats to their national security, Nir Kshetri, 2003

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FOSS as a IT Opportunity for governments & private sector –

Introduction to IT Cost Model

Total Cost of Ownership (TCO) may be computed as the Sum of :

1. Capex : The "purchase price" of the system (hardware & software licence)

2. The cost of switching to the new system (« In-Transition » - entry ticket) (deployment costs, training costs, project management costs, adaptation/development/integration costs...)

3. Opex : The cost of maintaining the system (operations staff, help desk, staff who fix problems, technical staff on supporting the live IT, technology upgrades and refreshes, operation and support management costs)

4. The cost of switching away from the system (« Out-Transition » - exit ticket)(cost of dependence on black box system not based on standard/open formats/protocols)

David Chisnall, 2006

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FOSS as an IT Opportunity for governments & private sector –

FOSS reducing Software TCO, creating equity, enad preventing against piracy● Software TCO = CAPEX (licence fee) + In-Transition + OPEX + Out-Transition

– in developed countries (labor costs++), CAPEX / TCO is small

– in emergent countries (labor costs--), CAPEX / TCO is high

– CAPEX should be taken normalised with cost of living

In Morocco,about 60% of Piracy(Dounia Essabban, 2006)

(1/12)

(1/38,7)

(1/1,7)

(1/131)

(1/50,7)

(1/110,5)

(1/20,4)

Sanjiva Weerawarana et al., 2004& Rishab Aiyer Ghosh 2004

(12)

(38,7)

(1,7)

(131)

(50,7)

(110,5)

(20,4)

*

=

● FOSS CAPEX << proprietary software CAPEX (or even FS CAPEX = 0)

– Reducing TCO, creating equity between developed and emergent countries wrt to CAPEX, and preventing against piracy

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FOSS preventing against Piracy in low GDP countries

USA Brazil Morocco Romania China Indonesia Nigeria0

20

40

60

80

100

120

1,00

12,10

18,48 20,41

38,72

50,76

110,59

25

5660

75

9288

71

USA GDP p cap / country GDP p cap

Piracy rate (%)

(CC) K. Baïna, based on Sanjiva Weerawarana et al., 2004 & Rishab Aiyer Ghosh 2004

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Does FOSS reduce the cost of IT investment in developing countries?

1. The competition offered by open source participates in reducing costs

2. If the developing country is serious about not just seeing IT as a cost center, but as a requirement for national development

– the real advantage of open source ends up being able to build up your own knowledge bases.

– And that is not cheap in itself, you’ll likely pay as much for that as you’d pay for a proprietary software solution.

– The difference being that, with the proprietary solution, you’ll never catch up (capitalise), and you’ll have to pay forever, without ever learning anything yourself.

Linus Torvalds,Father of Linux

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FOSS as IT strategy

Sanjiva Weerawarana et al. 2004

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Implementing FOSS IT Strategies

● At a high level of generality there are three sets of policy implementation options to be considered by governments:

1. Formal approaches (such as legislation or a government strategic plan) versus more informal, flexible approaches to letting FOSS use evolve.

2. Level of involvement : subnational, national, regional collaboration.

3. Mode of development : public sector adoption of FOSS versus private sector adoption, and collaboration among various users.

Country Formality National sub-national regional anti-dependence

Security & autonomy

IP Rights

Brazil High ** ** * **

Argentina Medium-High ** **

China Medium ** * ** * **

India Low * *

Steven Weber, 2003

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Some policy frameworks appropriate to enable success of FOSSin developing countries

a)Have policies in favor of use & spread of Internet enable building healthy FOSS community (hold off on Internet tariffs, licensing & control until industry is mature enough to understand its dynamics)

b)Encourage education in technology focusing on FOSS

c) Create a CTO&CoE for FOSS technologies in government reporting at a very high level and responsible for using FOSS in government, encouraging FOSS communities to collaborate

d)Give strategic weight to IT vendors or solutions incorporating FOSS technologies, without mandating that all IT solutions are FOSS

e)Provide some funding for localisation of popular FOSSBrian Behlendorf,Co-Founder Apache

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FOSS as Business strategy – business models

Sanjiva Weerawarana et al. 2004

Global marketsDomestic markets

Wilfred Dolfsm, 2006

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FOSS as Business strategy - business models for open innovation through

FOSS development● 4 “Open Innovation” models for FOSS as a Business Strategy

1.Pooled research : Pool resources to innovate in a common platform, exploit results (e.g. Linux, Mozilla)

2.Spinouts : Release some non-core innovation in a separate body, but stay involved (e.g. Eclipse, OpenSolaris, Jikes, Beehive)

3.Selling complements : Income from complements, shared innovation in a common OSS core (e.g. Oracle Http Server/Apache & IBM WS/Apache, Safari/Konqueror, Android & Apps/Linux)

4.Donated complements : Income from a proprietary core innovation, seek donated labor for valuable complements (e.g. Early BSD Unix, Matlab Central)

Joel West et al. 2006

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FOSS : an IT strategy leveraging for Business strategy

– alignment map exampleSanjiva Weerawarana et al. 2004

FOSS as IT Strategy

FOSS as Biz Strategy

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FOSS as Business strategy – some conditions for success

● High level sponsorships : governments, companies, communities, niche, donnors

● High IT infrastructure development

● Inexpensive technical manpower

● High IT skill developers & developer communities– one of the most successful open source software foundations of the

world, the Apache Software Foundation, uses community strength as the litmus test to decide on whether to embark on a project

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FOSS as IT strategy –obstacles in emergent countries

● Power of software industry lobbies

● Inferiority complex : « foreigner is better »

● Globalisation & Agressive marketing : « brands obsession »

● Free software Capex & Psychological price : « expensive is better »

● Confidence in Companies more than on Communities : « tailored & customised technical support »

● Absence of FOSS mentions in government IT policies

● Government IT policies are more off-shoring oriented

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Developed countries and FOSS adoption

Jean-Jacques Gauguier et al., 2005adapted from Dravis (2003) and Weerawarana & al. (2004)

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Emergent countries and FOSS adoption

Jean-Jacques Gauguier et al., 2005adapted from Dravis (2003) and Weerawarana et al. (2004)

Model to followamong the BRIC

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Brazil - A Model to follow

● By mid-2002, many Latin American countries such as Brazil had proposed bills mandating the use of open source in government organizations.

● Brazil is one of the countries where policies regarding adoption of FOSS have been successful, notably in the states of Rio Grande do Sul and Pernambuco. Four cities – Amparo, Solonopole, Ribeirao Pires, and Recife – have passed laws giving preference to or requiring the use of software libre, and other municipalities, states, and the national government have considered similar legislation.

● The Brazilian government is recommending that its agencies have Linux installed in all new computers from 2004 on. Also, the Brazilian Navy has been using FOSS since 2002.

● Since 2000, the Brazilian government has been funding a large-scale open source GIS project. The project is TerraLib, an open-source library for GIS and associated applications (Câmara et al., 2000). TerraLib enables quick development of GIS applications and is available at www.terralib.org. In early 2006, more than 10 private companies in Brazil developed products using TerraLib. The latest Brazilian GIS market survey estimates the total market to be US$150 million, with 200 companies and 4,000 employees (Magalhaes & Granemman, 2005). The service provider market is estimated to be US$40 million. Companies offering GIS services based on open source software form 15% of the service provider market.

Gilberto Câmara, 2007

http://www.terralib.org/

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Current situation of Moroccoin terms of innovation :

The Global Innovation Index 2012 – new ranking

--

HI : High IncomeLM : Lower-MiddleUM : Upper-MiddleLI : Low Income

HI : High IncomeLM : Lower-MiddleUM : Upper-MiddleLI : Low Income

ECS : Europe & Central AsiaMEA : Middle East & North AfricaSSF : Sub-Saharan AfricaEAS : East Asia & Pacific;SAS : South AsiaNAC : North AmericaNAWA : North Africa and Western AsiaLCN : Latin America & Caribbean0 .0 0 8.7 5 17 .5 0 2 6 .2 5

INSEAD 2012

Moroccan Ranking evolution : 2009:82, 2010:94, 2011:94, 2012:88

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Current situation of Morocco in terms of FOSS

● Education :

– Many Universities include FOSS in their curricula

● Annual National Free Software and Open Source days

– Software Freedom Day at Casablanca (since 2009)

– Each Engineering School or Science Faculty has its own Open Source day & Linux Install Party (since EMI 1999)

● Open Innovation :

– Unique FOSS contest CMOS (Concours Marocain de l'Open Source), 3 editions 2008-2010 sponsored by the Association of Information System Users in Morocco (AUSIM), replaced by non FOSS INNOV'IT

– Moroccan rank in GII'2012 (Global Innovation Index) : 88, behind (83-87) Kazakhstan, Paragway, Botswana, Dominican Republic, and Panama.

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Current situation of Morocco in terms of FOSS

● OSS in Ministries & Public Administrations :

– More than 40% of use (mainly OS, Office Suites, Programming frameworks) Taieb Debbagh, at RALL 2007 - 3ème rencontres africaines des utilisateurs de logiciels libres)

– Ministries of Finance, Cooperation and Foreign Affairs

● OSS in Enterprises :

– Many FOSS Service Enterprises are created (SSLL - Sociétés de Service en Logiciels Libres)

– Many Businesses adopt FOSS “for practical issues not for free software ideology” : LAMP, Spring, Apache, Tomcat, Jboss, Liferay, Alfresco, jbpm, Activiti, Bonita, OpenERP, Sugar CRM, Open LDAP, Pentaho, Mule ESB, Talend, Zope, Plone, Joomla, Drupal, ...

● OSS and Moroccan IT Strategy & High Level sponsorship :

– FOSS is not mentioned by the Moroccan digital strategy “Maroc Numeric 2013”

● Very Timid or dead activities of OSS Developers & Users Communities & Assoc :

– Among others : Ubuntu-MA, AMAL (Association Marocaine des Logiciels Libres), ADIL (Association pour le Developpement de l'Informatique Libre au Maroc), dead-OSIM (Open Source In Morocco)

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Morocco – some Recommendations

● Moroccan public and private sector should consider IT not at cost-center but value-center where encouraging local software industry will leverage human development, knowledge creation, innovation, excellence, and durable economy

● Morocco should give the example in the region by considering FOSS as serious alternative in its structuring and federating IT e-government projects

● Morocco should consider FOSS in future Moroccan digital strategy as did other developed and emergent countries

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References

1. Steven Weber, Open Source Software in Developing Economies, 2003.

2. Sanjiva Weerawarana, and Jivaka Weeratunga, Open Source in Developing Countries, SIDA, Sweden, 2004.

3. Rishab Aiyer Ghosh, The Opportunities of Free/Libvre/Open Source Software for Developing Countries, -ICTSD Dialogue on the pro-development IP agenda forward: Preserving Public Goods in health, education and learning, 29 November – 3 December 2004.

4. Nir Kshetri, Economics of Linux Adoption in Developing Countries, IEEE Software, 21 (1), 74-81, 2004.

5. Jean-Jacques Gauguier, and Rémi Douine, Local Software and Local Content Production Challenge in Developing Countries. What Can Be Learned from Open Source and Creative Commons Paradigms, Communications & Strategies, N° 58, 2nd Q. 2005.

6. Joel West, and Scott Gallagher, Patterns of Open Innovation in Open Source Software, in Open Innovation: Researching a New Paradigm, Oxford University Press, 2006.

7. Preston Coleman, and Raymond Papp, Strategic Alignment : Analysis of Perspectives, 2006 Southern Association for Information Systems Conference, 2006.

8. David Chisnall, Making Effective Software TCO Calculations, InformIT, 2006.

9. Wilfred Dolfsma, Tight prior open source equilibrium: The rise of open source as a source of economic welfare, First Monday, Volume 11, Number 1 - 2 January 2006.

10. Gilberto Câmara, Frederico Fonseca, Information Policies and Open Source Software in Developing Countries, Journal Of The American Society For Information Science and Technology, 58(1):121–132, 2007.

11. Jesus M. Gonzalez-Barahona, and Felipe Ortega, Economic Aspects of Libre Software, 2010.

12. INSEAD, Soumitra Dutta ed, The Global Innovation Index 2011 & 2012, Accelerating Growth and Development, 2011 & 2012.

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Merci pour votre attentionavez-vous des questions ?

Prof. Karim Baï[email protected]

@kbaina

www.slideshare.net/kbaina/made with :

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INSEAD 2012

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INSEAD 2012

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INSEAD 2012

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INSEAD 2012

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INSEAD 2012