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Open Source in Government / Graham Taylor
Open Source in Government


Graham Taylor
CEO, OpenForum Europe
European Government is Failing to
Effectively Utilise OSS
........ But why?

........ And what can we do about it?
Some Relevant Facts


●   European Public Procurement is worth €2200 B, representing
    19.4% GDP
●   ICT accounted for approx €600Billion
●   Software and Services approx €400Billion
●   Approx 18% can be monitored via OJEU procedure
●   Actual OSS value ?????
●   13% still illegally include trade marks/product names
●   Use of 'negotiated procedures' on increase
Governments are adopting a
              level playing field strategy......
●   Even the UK...........

        “Where appropriate, government will procure open source
         solutions. When used in conjunction with compulsory open
         standards, open source presents significant opportunities
         for the design and delivery of interoperable solutions. "

●   But the Strategy is not yet being turned into Practice
●   This is not due to lack of Political will
●   And it is European wide
●   Albeit with notable exceptions
●   BUT WHY?
Why Strategy Doesn't Equal Practice
              - Results of an OFE Analysis
●   Culture
●   Legacy Contracts
●   Financial Targets
●   Perceived Risks and Myths
●   Network Effects
●   Inertia
●   Audit
    plus
●   The SME Effect
●   Skills?
●   Understanding of TCO
Cost is an Issue for all Governments, but
            not all are convinced it is part of the solution


●   OFE and the UKG Cabinet Office jointly sponsored LSE
    Research
●   Nothing revolutionary in results but drove some interesting
    conclusions
●   Research to be published shortly
●   So this is only an appetiser!
●   'Total Cost of Ownership'
●   Interviews were with existing users of OSS
●   Only 23% can used a formal TCO assessment
●   So results had to identify where benefits made 
Organisations Indicated that.....
Building our Cost Categories
Ease of Estimation?
Software Life Cycle
Software
     Specific:
Search           Cost of up-front evaluation study                               

                 Cost of up-front proof of concept implementation                

Acquisition      Cost of Software                                                

                 Cost of Customisation for business needs                        

                 Cost of Integration (to current platform)                       

Integration      Cost of Migration (data and users)                              

                 Cost of Training                                                

                 Cost of Process and Best Practice change                        

Use              Cost of Support services - in house                             

                 Cost of Support services - contracted                           

                 Cost of Maintenance and Upgrades                                

                 Software scaling (for change in user or transaction volumes)    

Retire           Exit costs (in relation to hardware and software)               

                 Exit costs (in relation to changeover, re-training)             
Software-related Benefits of OSS Adoption



-   OSS helps the organization to better manage risk during
    the selection process – procurement decisions do not
    need to be made in one action, but instead can be
    ‘worked up to’
-   Useful negotiation tool in making deals with proprietary
    vendors
-   Builds a stronger, and more expert local IT/IS industry by
    encouraging regional developers, SMEs
-   Migration costs between OSS products is lower as OSS
    is often based on open standards
Broader Benefits of OSS Adoption


-   Greater flexibility, freedom and control over the code
-   Reliability, transparency and greater security of code –
    many countries are using OSS to create, and hold
    details of their national ID cards
-   Building of in-house expertise and skills – making you
    less reliant on external support
-   Allows pooling of resources, expertise and code for
    reuse, customization, and change
Organizational Benefits
Organization Specific:

Strategic lever          Open source software has been used as a cheaper option to help
                         stimulate competition.



Dependence               Open source helps prevent against upgrade lock-in by a
                         particular vendor.



Empowerment              Open source software encourages empowerment and the ability
                         to change software as needed through access to the source
                         code and reliance on open standards.




Innovation driver        Open source can inspire and drive innovation because it is
                         accessible to view and change – but at the same time, it creates
                         an atmosphere conducive to making mistakes and learning from
                         them.
Benefits through Creation of an Ecosystem


Software Eco-System
     Specific:
Platform co-creation          Open source software can be pooled, shared and built upon to
                                    create a platform which encourages reuse and co-creation.


Collaborative competition     The adoption of open source software helps to nurture the local IT
                                    industry by levelling the playing field, and encourage
                                    collaborative competition.

Building in-house expertise   Open source software can help to empower the organisation and
                                    help develop in-house expertise through access to a
                                    knowledgeable community, source code, and an environment
                                    which implies sharing and reciprocity.

Principle of mutuality        The use, adoption and development of open source software can
                                    create experts which can then be used as a shared resource
                                    across local authorities and central government.
What is holding your organisation back from
                             using open source?

OS related issues
Understanding Licences and license compliance
Availability of specific apps
Some OSS is very immature, inferior user interfaces
Sometimes proprietary alternatives are simply better
Feature completeness
[Lack of a] community backing the open source project
Product related issues
Poor coverage in ERP arena ; Lack of availability of open source software for our industry
Incomplete implementations; Not working correctly
Very complex code bases (and communities)
What is holding your organisation back from
                             using open source?

Organisation related issues
Unclear Procurement policy
Value for money
Misinformation among upper level management; Lack of knowledge of key technical decision
makers; Time availability
Support issues
Lack of in-house support; lack of in-house knowledge;
Understanding by staff; Poor support of open standards by our business partners; Support
worries; Requirements for external support contracts
Environment issues
Desire to have specific software; SAP Legacy
Compatibility with Microsoft proprietary file formats
Perceived Lack of acceptance of OSS for Public sector solutions
Proprietary standards used by environment (govt & clients)
Lessons for the Public Sector
•   Pragmatism needs to guide open source adoption and not ideology 
•   Open source is not just or only or always about ‘cheap’. But it can bring
    a number of distinct and enduring benefits when contrasted to
    strategies based around proprietary software
•   Migrating to open source is more likely to be successful if it is done
    when there is a real and present need for change, rather than simply
    on the basis of finding open source attractive on infrastructure cost
    arguments 
•   Adoption and development of open source can support the sharing of
    both expertise and expense between government bodies, for example
    among local authorities forming a flexible route to collaboration
Lessons for Us
●   The Benefits are real, but maybe we need to be better at
    explaining them
●   Political 'need' and ownership is a must
●   TCO is fundamental but we have to be prepared to explain and
    justify the wider benefits
●   Procurement policy and practice will be the single largest
    challenge
●   Just because it is OS doesn't automatically make it better than
    alternatives – we have to be as professional, as complete as
    competitors
●   Relationships will be important, confidence building will be
    essential
Thank You
Graham Taylor

graham@openforumeurope.org
www.openforumeurope.org

More Related Content

Open Source in Government / Graham Taylor

  • 2. Open Source in Government Graham Taylor CEO, OpenForum Europe
  • 3. European Government is Failing to Effectively Utilise OSS ........ But why? ........ And what can we do about it?
  • 4. Some Relevant Facts ● European Public Procurement is worth €2200 B, representing 19.4% GDP ● ICT accounted for approx €600Billion ● Software and Services approx €400Billion ● Approx 18% can be monitored via OJEU procedure ● Actual OSS value ????? ● 13% still illegally include trade marks/product names ● Use of 'negotiated procedures' on increase
  • 5. Governments are adopting a level playing field strategy...... ● Even the UK........... “Where appropriate, government will procure open source solutions. When used in conjunction with compulsory open standards, open source presents significant opportunities for the design and delivery of interoperable solutions. " ● But the Strategy is not yet being turned into Practice ● This is not due to lack of Political will ● And it is European wide ● Albeit with notable exceptions ● BUT WHY?
  • 6. Why Strategy Doesn't Equal Practice - Results of an OFE Analysis ● Culture ● Legacy Contracts ● Financial Targets ● Perceived Risks and Myths ● Network Effects ● Inertia ● Audit plus ● The SME Effect ● Skills? ● Understanding of TCO
  • 7. Cost is an Issue for all Governments, but not all are convinced it is part of the solution ● OFE and the UKG Cabinet Office jointly sponsored LSE Research ● Nothing revolutionary in results but drove some interesting conclusions ● Research to be published shortly ● So this is only an appetiser! ● 'Total Cost of Ownership' ● Interviews were with existing users of OSS ● Only 23% can used a formal TCO assessment ● So results had to identify where benefits made 
  • 9. Building our Cost Categories
  • 11. Software Life Cycle Software Specific: Search Cost of up-front evaluation study   Cost of up-front proof of concept implementation   Acquisition Cost of Software   Cost of Customisation for business needs   Cost of Integration (to current platform)   Integration Cost of Migration (data and users)   Cost of Training   Cost of Process and Best Practice change   Use Cost of Support services - in house   Cost of Support services - contracted   Cost of Maintenance and Upgrades   Software scaling (for change in user or transaction volumes)   Retire Exit costs (in relation to hardware and software)   Exit costs (in relation to changeover, re-training)  
  • 12. Software-related Benefits of OSS Adoption - OSS helps the organization to better manage risk during the selection process – procurement decisions do not need to be made in one action, but instead can be ‘worked up to’ - Useful negotiation tool in making deals with proprietary vendors - Builds a stronger, and more expert local IT/IS industry by encouraging regional developers, SMEs - Migration costs between OSS products is lower as OSS is often based on open standards
  • 13. Broader Benefits of OSS Adoption - Greater flexibility, freedom and control over the code - Reliability, transparency and greater security of code – many countries are using OSS to create, and hold details of their national ID cards - Building of in-house expertise and skills – making you less reliant on external support - Allows pooling of resources, expertise and code for reuse, customization, and change
  • 14. Organizational Benefits Organization Specific: Strategic lever Open source software has been used as a cheaper option to help stimulate competition. Dependence Open source helps prevent against upgrade lock-in by a particular vendor. Empowerment Open source software encourages empowerment and the ability to change software as needed through access to the source code and reliance on open standards. Innovation driver Open source can inspire and drive innovation because it is accessible to view and change – but at the same time, it creates an atmosphere conducive to making mistakes and learning from them.
  • 15. Benefits through Creation of an Ecosystem Software Eco-System Specific: Platform co-creation Open source software can be pooled, shared and built upon to create a platform which encourages reuse and co-creation. Collaborative competition The adoption of open source software helps to nurture the local IT industry by levelling the playing field, and encourage collaborative competition. Building in-house expertise Open source software can help to empower the organisation and help develop in-house expertise through access to a knowledgeable community, source code, and an environment which implies sharing and reciprocity. Principle of mutuality The use, adoption and development of open source software can create experts which can then be used as a shared resource across local authorities and central government.
  • 16. What is holding your organisation back from using open source? OS related issues Understanding Licences and license compliance Availability of specific apps Some OSS is very immature, inferior user interfaces Sometimes proprietary alternatives are simply better Feature completeness [Lack of a] community backing the open source project Product related issues Poor coverage in ERP arena ; Lack of availability of open source software for our industry Incomplete implementations; Not working correctly Very complex code bases (and communities)
  • 17. What is holding your organisation back from using open source? Organisation related issues Unclear Procurement policy Value for money Misinformation among upper level management; Lack of knowledge of key technical decision makers; Time availability Support issues Lack of in-house support; lack of in-house knowledge; Understanding by staff; Poor support of open standards by our business partners; Support worries; Requirements for external support contracts Environment issues Desire to have specific software; SAP Legacy Compatibility with Microsoft proprietary file formats Perceived Lack of acceptance of OSS for Public sector solutions Proprietary standards used by environment (govt & clients)
  • 18. Lessons for the Public Sector • Pragmatism needs to guide open source adoption and not ideology  • Open source is not just or only or always about ‘cheap’. But it can bring a number of distinct and enduring benefits when contrasted to strategies based around proprietary software • Migrating to open source is more likely to be successful if it is done when there is a real and present need for change, rather than simply on the basis of finding open source attractive on infrastructure cost arguments  • Adoption and development of open source can support the sharing of both expertise and expense between government bodies, for example among local authorities forming a flexible route to collaboration
  • 19. Lessons for Us ● The Benefits are real, but maybe we need to be better at explaining them ● Political 'need' and ownership is a must ● TCO is fundamental but we have to be prepared to explain and justify the wider benefits ● Procurement policy and practice will be the single largest challenge ● Just because it is OS doesn't automatically make it better than alternatives – we have to be as professional, as complete as competitors ● Relationships will be important, confidence building will be essential