Outside of the United States and Europe, cost is a major driving force for governments to adopt open-source software. However, it is not the only reason.
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| Source: Microsoftwatch |
Mr. Rishab Ghosh, head of the open-source research project at the Maastricht Economic Research Institute in the Netherlands, recently conducted a comparison between software licensing costs and the GDP per capita of a country.
The results indicated that even after discounts, the cost of purchasing legitimate software in developing markets remains excessively high. The price of Microsoft Windows XP and Office XP on Amazon.com in the U.S. is equivalent to three months’ GDP per capita in South Africa and over 16 times the GDP per capita in Vietnam. In the U.S., this would be akin to paying between $7,541 and $48,011.
In summary, even if Microsoft claims to be “generous” by reducing software prices for preferential markets, these products still remain luxuries, and there is no guarantee that these discount policies will last indefinitely.
In developed markets, transitioning to open-source requires significant costs for businesses, governments, and individuals to replace systems, update related applications, and retrain staff. However, in developing markets, these three steps often do not take place, making it inevitable for them to be more open to “open-source” solutions.
Moreover, a notable advantage of open-source is that it offers developing countries the opportunity to revitalize their domestic IT industries. This is particularly important as these countries often lack a robust software industry, or if they have one, it is quite weak.
“Local companies are constrained by proprietary services and software. In-depth support, bug fixes, customer customization, and wide integration with other software are things they cannot achieve with Microsoft,” Ghosh stated.
Furthermore, with open-source, countries can develop operating systems using local languages, thus spreading computer literacy to remote and underdeveloped areas. For example, the South African government has funded a project to translate OpenOffice.org into 11 languages used in the country. This project is nearing completion, whereas Microsoft Office 2003 only supports one of those languages: English.
“From the perspective of a developing country, open-source is extremely effective for localization. Meanwhile, Microsoft only offers discounts after considering how large the market is and how strategically important it is,” noted analyst James Governor from Red Monk.
1. China: Using Domestic Software
The Chinese government plans to provide over 140,000 Linux computers to primary and secondary schools across Jiangsu Province. This agreement was announced during the Sun Wah Linux seminar in October 2005 and is considered the largest desktop Linux deployment campaign in Asia to date.
According to its commitments upon joining the WTO, China is required to replace previous pirated software versions with legitimate software. However, to reduce dependence on foreign proprietary products, China has decided to replace at least some Windows programs with Linux.
Many local and central government agencies have begun installing open-source software, including the Ministry of Science, the National Statistics Bureau, the National Labor Commission, and the Beijing Municipal Committee. This transition to Linux has been widely reported by the media.
In addition to Linux, the Chinese government also supports many other open-source products, including NeoShine, a Chinese variant of OpenOffice.org. OpenOffice itself has been included in the government’s list of priority office products.
The strong support for domestic software is seen by analysts as a key factor in the rise of open-source in China, even though there are no regulations prohibiting the use of Microsoft products.
A series of initiatives and research projects on open-source have received government funding. Last year, the Ministry of Information established the Open Source Software Promotion Alliance to encourage the development of the country’s open-source software industry. International collaborations in the open-source sector have also been promoted, with partners from South Korea, Japan, and the French Atomic Energy Commission.
According to Gartner analyst DiMaio, the Chinese government’s fondness for open-source stems from two main reasons: low cost and benefits for the domestic software industry. Additionally, there are cultural and political reasons that drive the country to pursue an “open-source friendly” policy.
2. India: Speak in Your Way (and Language)
Focus Project:
The Indian government has funded an initiative to distribute free CDs containing open-source software. Approximately 3.5 million CDs containing open-source applications in Tamil and another 3.5 million CDs in Hindi have been distributed to the community.
However, according to the plan, the government will continue to distribute CDs with software in all 22 officially recognized languages used in the country.
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Source: Linux-mag.com |
In South Asia, open-source software is widely installed in both the central and state governments. Interestingly, states appear to be more open and daring with the idea of open-sourcing, while the central government maintains a more “neutral” stance.
Maharashtra, the third-largest state in India, has installed OpenOffice.org on thousands of desktops and uses Linux for treasury management and local land records.
Meanwhile, Kerala is utilizing open-source software in many e-governance initiatives. Many schools in the state are also entirely using Linux computers.
A center named the Open Source Software Research has been established by the government to develop open-source software and accompanying training programs. They have also created a website to share government experiences in the open-sourcing campaign.
Indian President APJ Abdul Kalam has not hesitated to praise open-source whenever possible. Last year, he called on the military to adopt open-source to combat cybersecurity threats. The year before, he lamented that it was “unfortunate” that proprietary software like Windows was so prevalent in India.
However, analysts believe that the Indian government still needs to pursue a relatively neutral policy towards open-source, as they do not want to alienate their largest trade partner – the U.S. The outsourcing industry is vital to India’s economy, as the top 20 IT service companies generated up to $5.77 billion in export value in 2004.
Observers also note that this policy is heavily influenced by ongoing “lobbying” efforts from Microsoft. The software giant has generously collaborated with many Indian outsourcing companies, including Infosys.
However, if India is determined to pursue open-source, Microsoft may face serious challenges, as India possesses a large, highly skilled, and professional software engineering workforce that surpasses any developing country. Furthermore, there is a general desire to control their own technology rather than remain customers.
3. Microsoft’s Moves
In light of several governments opting to drop Windows and Office in favor of open-source software, Microsoft has decided to turn the tide with a new strategy aimed at the government IT market. This sector is facing fierce competition, and it seems that open-source is gaining the upper hand.
Microsoft’s goal is to assist governments in building more cost-effective IT systems that still serve the public better.
The new strategy, named Public Services and E-Government, will focus on the “core” capabilities of government IT management, including identity management, customer relationship management, document management, and more.
This is part of Microsoft’s Connected Government Framework, which aims to support governments in building more cost-effective IT systems that better serve their citizens.
To implement the new strategy, Microsoft will partner with WiSeKey in the area of digital identity management, and with Accenture and Avanade in replacing paper forms with modern automated electronic technologies.
Thien Yi
