Cedric Thomas, 2019

Role of Open Source as Innovation EnablerCedric Thomas, OW2

Panel Contribution

Cedric Thomas, 2019

About OW2 A global non-profit open source organization Promote the development of a portfolio of open-source components for

enterprise information systems.

Foster the growth of a community and business ecosystem.

OW2 is a community-driven organizationCode base of some 100 third-party projects developed by communities

and members. OW2 does not own project IP.

Independent, open source governance: Board of directors, Technology Council and Project Leader accountability.

Focus on project quality and market readinessLaunch of third generation support program: Market Readiness Levels

methodology applied to OW2 projects.

Independent technical infrastructure and community governance system provide input to market readiness assessment.

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Cedric Thomas, 2019

DeveloperDeveloper EntrepreneurEntrepreneur EcosystemEcosystem IndustryIndustry

● Opportunistic disruption● Organic response

● Strategic commoditization● Collaborative innovation

● Concentration● Expansion

€ £$¥€ £

$¥

€ £$¥

● Individualistic intention● Ethical sharing

Combined Proprietary & OSS

Innovation

OSS Innovation

Proprietary Innovation

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Cedric Thomas, 2019

OSS Drives Open Software Innovation

OSS is a vehicle for collaborative software innovation

Friction-less collaboration, rules attached to code

Complex multi-stakeholders innovations

Information symmetry and isolation avoidance

Opening of new, profitable opportunities

The incentive question

Why should companies invest in OSS innovation?

Why are major IT leaders involved in OSS?

Proprietary IP incentives work with prospects of

Extraordinary profits

Monopoly position

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Cedric Thomas, 2019

OSS Innovation Reflects Market Structure

Can EU SW industry envision extraordinary profits and monopoly positions?

Outsider in SW industry → Outsider in next market (platforms, AI, etc.)

Open source software is an avatar of proprietary software industry.

Dominant positions in global software industry are reflected in open source.

OSS innovation most efficient choice where no dominant position is expected.

Proprietary IP innovations only where dominant positions can be expected.

Source: P. Evans, Global Platform Database, Center for Global Enterpsies, 2015

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Cedric Thomas, 2019

OSS Creates Value Through Positive Social Externalities

Avoids deadweight loss typical of proprietary IP incentive mechanism.

Accelerates new technologies propagation: users do not wait for obsolescence to kick in.

Raises users’ technology maturity and fosters demand for more innovation.

Creates skilled high-wage service jobs and keeps value local.

Open shared development helps address skills shortage issue.

Software users

Deadweight lossPm

q1

Software users

IT Jobs

OSS

q2

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Cedric Thomas, 2019

OSS Faces Key Challenges Reuse uncertainty: Compliance issues and risks of imported vulnerabilities.

SaaS and cloud computing: Freedom and control focus shift from code to services.

AI: Focus shifts from code to data, intelligent programs side-track developers.

IoT and IT verticalisation: OSS code sharing benefits hampered by techno fragmentation.

Deviations: Opportunistic foundations, software use discriminations.

Free riders: Consumer attitude and lack of back contributions drain the ecosystem.

Image: https-//commons.wikimedia.org/wiki/File-Road_in_Maui,_Hawaii_(8017312033)

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Cedric Thomas, 2019

2- Reduce uncertainty, simplify compliance.

3- Focus on supply push – demand pull interaction.

4- Change status of OSS from unorthodox to normal.

5- Develop EU OSS incubation work programme.

Public Policy Tactics

Make OSS de facto legal regime for research projects; proprietary IP should be substantiated.

Introduce EU-wide legal OSS construct superseding national legislations.

Establish financial incentives for users supporting EU OSS ecosystem and contributing back to EU-led OSS projects

Engage with policy makers and business leaders. OSS is not weird, it creates value for all.

Fine--grained support to high-potential EU-driven OSS projects leveraging cross-border EU markets and communities.

Image: https://hu.m.wikipedia.org/wiki/F%C3%A1jl:1_point_perspective.svg

1- Redirect subsidies and adapt grant process.

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Cedric Thomas, 2019

And now let's talkQ&ADisagreementsComplementsFeedbacketc.

Thank You

www.ow2.orgFor more details please contact Cedric Thomas, OW2 CEO, cedric.thomas@ow2.org