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

Free and Open Source Software
(FOSS)
as
an IT & Biz Strategy
for emergent countries

Prof. Karim Baïna

Responsible of Alqualsadi research team
on Enterprise Architecture
ENSIAS, Mohammed V Souissi University, Rabat, Morocco

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

« no national government, if it had
alternatives, would have chosen
th
during the 20 century
to accept dependence
for steel or petroleum
on single or small number of suppliers
based in another nation »
Steven Weber, 2003.
2/21


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

3/21


Introduction –
Business/IT Strategy
The Strategic Alignment Model

Strategic fit

functional integration
http://www.strategic-alignment.com/ Adapted by Preston Coleman et al., 2006 from Henderson & Venkatraman (1990) 4/21


Introduction – Business/IT
Strategy: Alignment Perspectives

Adapted by Preston Coleman et al., 2006 from Pap (1995) 5/21


Strategy: Alignment Perspectives

Open Reflection Homework :
● Consider FOSS as
1.Simple Software Components within IT Infrastructure
2.IT Strategy
3.Business Strategy
● And imagine its impacts on other perspectives.

Adapted by Preston Coleman et al., 2006 from Pap (1995) 6/21


Strategy : Enterprise Architecture
The Strategic Alignment Model

Strategic fit

Strategic Planning on Biz & IT Infra :
Enterprise Architecture

functional integration
http://www.strategic-alignment.com/ Adapted by Preston Coleman et al., 2006 from Henderson & Venkatraman (1990) 7/21


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

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

Gap

GAP

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

8/21


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
9/21


FOSS as a Business opportunity for
●
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)
10/21


FOSS as an IT Opportunity for
● 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
11/21


FOSS as a IT Opportunity for
governments & private sector –
Introduction to IT Cost Model
David Chisnall, 2006
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)
12/21


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

(1/12) (12)

(1/38,7) (38,7) Sanjiva Weerawarana et al., 2004
& Rishab Aiyer Ghosh 2004
(1/1,7) (1,7)

(1/131) (131)
=
(1/50,7) (50,7)

(1/110,5) (110,5)
In Morocco,
(1/20,4) (20,4) about 60% of Piracy
(Dounia Essabban, 2006)
*
● 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
13/21


FOSS preventing against Piracy in low GDP countries

120
110,59

100
92
88

80 75
71

60 USA GDP p cap / country GDP p cap
60 56
Piracy rate (%)
50,76

38,72
40

25
20,41
18,48
20
12,10

1,00
0
USA Brazil Morocco Romania China Indonesia Nigeria
(CC) K. Baïna, based on Sanjiva Weerawarana et al., 2004 & Rishab Aiyer Ghosh 2004

14/21


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, 15/21
Father of Linux

FOSS as IT strategy

Sanjiva Weerawarana et al. 2004 16/21


Implementing FOSS IT Strategies
Steven Weber, 2003
● 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- Security & IP Rights
dependence autonomy

Brazil High ** ** * **

Argentina Medium-High ** **

China Medium ** * ** * **

India Low * * 17/21


Some policy frameworks appropriate to
enable success of FOSS
in 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 FOSS
Brian Behlendorf,
Co-Founder Apache
18/21


FOSS as Business strategy –
business models

Wilfred Dolfsm, 2006

Domestic markets Global markets

Sanjiva Weerawarana et al. 2004 19/21


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 20/21


FOSS : an IT strategy leveraging
for Business strategy
– alignment map example
Sanjiva Weerawarana et al. 2004

FOSS as Biz Strategy

FOSS as IT Strategy

21/21


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

22/21


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
23/21


Developed countries and FOSS adoption

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

24/21


Emergent countries and FOSS adoption

Model to follow
among the BRIC

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

25/21


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 26/21


INSEAD 2012

Current situation of Morocco
in terms of innovation :
The Global Innovation Index 2012 – new ranking
Moroccan Ranking evolution : 2009:82, 2010:94, 2011:94, 2012:88

--

HI : High Income
LM : Lower-Middle
UM High Income
HI : : Upper-Middle
LI : Low Income
LM : Lower-Middle
ECS : Europe & Central:Asia
UM Upper-Middle
LI : Low Income
MEA : Middle East & North Africa
SSF : Sub-Saharan Africa
EAS : East Asia & Pacific;
SAS : South Asia
NAC : North America
NAWA : North Africa and27/21 Asia
Western
LCN : Latin America & Caribbean
0 .0 0 8.7 5 17 .5 0 2 6 .2 5


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.
28/21


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
29/21
(Open Source In Morocco)

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
30/21


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.
31/21


Merci pour votre attention
avez-vous des questions ?

Prof. Karim Baïna
baina@ensias.ma

@kbaina

www.slideshare.net/kbaina/
made with :

32/21


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

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

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