Download - Open source
Techgenesis & Co.© Stephen M. Patterson
Comparison of Open Source Software versus Microsoft on Regional Economics and Sustainable Competitive Advantages
Economic Effect of Open Source Software Industry on the EU
Techgenesis & Co.© Stephen M. Patterson
Microsoft Example
• Worldwide Annual Revenue $32B 30.6.2003
• EU Revenue $9BNote1
• Revenue from Germany ~$2.2 – 2.8B
• Microsoft Employment in DE 1,200• Contribution to German GDP $300M• Imbalance of Trade ~$1.9- 2.5B
Note 1: Estimate based on historical performance. Microsoft stopped publishing geographical breakdown of Revenue after 2002
Techgenesis & Co.© Stephen M. Patterson
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Industrial Development Example IBM Electronic
Manufacture in Taiwan
Industrial Development Example Microsoft in International Markets
Semiconductor Mfg
Automated Manufacture
Low Cost Handwork
Integrated Design and Mfg
Advanced Semiconductor Mfg
Integration and Applications Serving Small
Economic Segments
1960 Today
1984 Today
Comparison of Closed vs Open Innovations Systems
Techgenesis & Co.© Stephen M. Patterson
Economic Effect of Closed Systems of Software Innovation
• Qualified European Software Engineers are Under Employed or Un-Employed
• The Majority of Revenues are Exported Reducing the Capital Available to Stimulate Economic Growth in the Software Segment
• Closed Systems Inhibit Local Innovation and Decrease Competitiveness Reducing the Local Capacity to Export Software
Techgenesis & Co.© Stephen M. Patterson
Open Source = Open Competition
• “Open Standards” have Benefited EC – e.q. GSM and ISDN
• Competition within a Standard Levels the Playing Field
• Build on National Expertise and Expand through Existing Trading Relationships – Eastern Europe, Asia, Middle East
• As the Software Industry Matures its Balance of Trade and Vertical Integration Should Match Other Mature Industries, e.q. Automobiles, Aerospace, etc.
Techgenesis & Co.© Stephen M. Patterson
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Worldwide Open Source Based Industrial
Development
Systems Integration
Core System Design
Advanced Systems Tools and Utilities
Integrated Open Systems Architecture
Advanced Software Development Process Leadership
Time
Regional Technical and Trading Advantage Based Leadership Emerge
Techgenesis & Co.© Stephen M. Patterson
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Desktop Server
Time and Successful Implementation Experience
Relative Stage of Server and Desktop Development
Techgenesis & Co.© Stephen M. Patterson
Its all About the Desktop
Techgenesis & Co.© Stephen M. Patterson
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Dissatisfaction with Microsoft Licensing
EC will Lead in Large Scale Linux Adoption
Techgenesis & Co.© Stephen M. Patterson
Importance of Government Linux Projects
• A Government Can Measures Success on More than One Dimension, i.e. Economic Development, Workforce Development, Unemployment, etc.
• Government Procurement that React Locally and Personally to their Dissatisfaction with Microsoft will Prefer the Microeconomic Benefit and Measure Success Solely based on the Lowest Cost
• Government Procurements that Act Strategically will Prefer the Macroeconomic Benefit of Linux and will not Seek the Lowest Cost and Will Measure Success in Other Dimensions
• Government Projects Can Fail on Commercial Terms but be Declared a Success based on Social Benefits – Governments can make Policy that Invests in and Stimulates Open Source Development