Walking The Talk On Openness

<Insert Picture Here> IT Policy in Europe 2010-2013: The Imperative of Walking the Talk on Openness Trond Arne Undheim, Ph.D. Director of Standards Strategy and Policy EMEA i2010 unit, DG INFSO, Brussels, 12 March 2009.

<Insert Picture Here> Jonathan Zittrain “DG” Oxford and Harvard “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.

<Insert Picture Here> Viviane Reding DG INFSO “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.

<Insert Picture Here> Neelie Kroes DG COMPETITION “Opting for open standards is a very wise business decision indeed” OFE Breakfast, 10 June 2008.

<Insert Picture Here> Famous person Reputable institution “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.

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

Every IT System Needs An Integration Architecture Applications Technology Enterprise Enterprise Manufacturing Performance Industries Management Retail Identity Management Content Comms Management Middleware Management Banking Database Insurance Utilities Systems Management Others

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.

<Insert Picture Here> Vint Cerf Father of the Internet “The Internet is fundamentally based on the existence of open, non- proprietary standards.”

Future-proof IT policy for the EU? Top 10 Elements 1 6 Safeguard the open Internet platform Strong partner ecosystem 2 7 Seed capital to innovating SMEs Argue efficiency & effectiveness 3 8 Prove end-user value Make the vision understandable 4 9 Push growth through verticals Embed e-participation 5 10 Secure open standards across Europe Aim for selective global leadership

From i2010 to E-Union? • From Web 2.0 to • Interoperability of the Business 2.0. Internal Market. • Standards Education • European software strategy. Market access • Strategic Programme R&D for IT • Keeping the Internet on Standardization in applications across sectors Middleware & open. Applications. • Attract talent to EU. • Climate change apps 2013 • IT Procurement • Migration strategy for policy compliance. Member States (and Interoperability Open e-government e-Commission). • Communication on (Open standards) • Launch of real Pan- EIF 2.0 with ex ante assurances and/or European services default royalty free. (from legacy systems • Recognition of fora/ to open standards). consortia in EU law. • E-participation.

The Open Internet <Insert Picture Here> • 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).

Framework Directive: Interoperability & Innovation <Insert Picture Here> • 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 Innovate Better products New technology Transparency Avoid lock-in Market stability Market access Economic growth Reduce costs Source: The Momentum of Open Standards - a Pragmatic Approach to Software Interoperability The 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 imgres Adobe: “government demand played a part”

The Ideal Software Standards Ecosystem • Healthy • Certainty process • Late disclosure as Royalty free Disclosed ex ante • Non-RF as the the exception exception Open Global • Wide implementation • Actual interoperability

<Insert Picture Here> Trond Arne Undheim, Ph.D. Oracle Corporation “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

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/

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Walking The Talk On Openness

by Trond Arne Undheim

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