“Open Systems – Open Source”

NYC Digital Government Summit

November 1, 2007

John Punzak

Director, S&L/Education

Open Source Methods Spreading

Wikipedia will soon be 12 times larger than Britannica, equal in quality

A new blog is created every second (Tapscott, 2/07)

Amount of FLOSS used in EU represents 131,000 real-person-years of effort and a value of 12 billion Euro (United Nations University – MERIT)

375,000 new MySpace users every day, will soon reach one billion

The situation

Three boys wanted to email a video clip to friends. They failed.

The idea

So they built an on-line system for video sharing in two hours.

The domain name was registered on the 2/14/05. The site was open to the public by May, 2005.

The result

It was an instant hit; word of mouth fuelled the initial growth.

Millions around the world share their videos with one another, some creating instant global stars

Google, Inc acquired YouTube for $1.65 billion in 10/06

Your home made movies

The situation

GoldCorp, Inc wanted to increase its mining success rate in an old mine called Red Lake, in Canada

The CEO decided they should share all available company-owned geological data of the mine with everyone on the Internet

They offered $575,000 prize money to the whoever that could use the data to tell them to find at least 6 million ounces of gold

The result

1,400 scientists, engineers, and geologists from 50 countries downloaded the company's data and started their virtual exploration

Goldcorp drilled four of the winners' targets and have hit on all four

The prize winner? Fractal Graphics, a software firm based in Perth – never seen a mine, doesn't understand the gold business

The company shot from US$100 million to US$9 billion in revenue

Gold digging goes open source

“Frustrated that over two decades of research have failed to produce an AIDS vaccine, Microsoft Corporation Chairman Bill Gates is tying his foundation's latest, biggest AIDS-vaccine grants to a radical concept. Those who get the money must first agree to share the results of their work in short order”

- Wall Street Journal, July 26, 2006

Even Bill Gates embraces open source

A. There is no secret. A. There is no secret.

It's out there for everyone to share, understand, and tap into.

The best ideas (and technology) win.

Q: What is the secret to the successes of

these businesses?

8

Source code:

#include <stdio.h>

int main (void)

{

printf("hello, world!\n");

return 0;

}

9

Binary code:

10

Returns control.

Security reinforced through transparency.

Multiplies the development capacity.

Wired Magazine, Dec 2004

Bugs per 1000 Lines of Code

Linux 2.6 Kernel 0.17 Stanford University/CoverityProprietary Software 10 to 20 Carnegie Mellon Cylab

Open Source – a better way

11

The demand is out-pacing IT's ability to deliver Unfunded & under funded mandates Real estate bust will lead to major budget short falls next FY Open source's high value can help close the gap

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070

20

40

60

80

100

120

IT Demands vs IT Budgets

Y2K

.com

bust

Property

Tax bust

HIPPA

HAVA

Real

ID

B

u

d

g

e

t

s

Gap Between Requirements & Budgets

What is an Open Standard?

Standards, instructions or “blueprints” that are

created and maintained in an open manner.

Using a democratic approach where no single

individual or company controls the standard.

Open standards provide choice and

interoperability between systems.

Stronger negotiating position

Lower IT costs because of competition

Ability to influence development process/pipeline

Ability to secure off-the-shelf technology while ensuring

interoperability with custom products

Information sharing among government entities

Interoperability with existing systems

What does it mean for Government?

ISO-approved, XML-based open standard for documents, spreadsheets and presentations

Reduces vendor lock-in, increases user choice

Commonwealth of Massachusetts in the U.S. led the way

Governments of Belgium, Brazil, Croatia, Denmark, France, Malaysia, et al., have since followed

Red Hat is a founding member of ODF Alliance

www.odfalliance.org

Example: Open Document Format

““By 2011, at least 80% of all commercial By 2011, at least 80% of all commercial

software solutions will be based on open software solutions will be based on open

source.”source.”

IGNORING OPEN SOURCE IS NO LONGER AN OPTIONIGNORING OPEN SOURCE IS NO LONGER AN OPTION

“Open source is the biggest change in corporate IT since distributed

computing. It is not a niche, not a fad. Competing against open source is

like tilting at windmills."

- Gartner Open Source Summit, September 2007

IGNORING OPEN SOURCE IS NO LONGER AN OPTIONIGNORING OPEN SOURCE IS NO LONGER AN OPTION

“Open source is the biggest change in corporate IT since distributed

computing. It is not a niche, not a fad. Competing against open source is

like tilting at windmills."

- Gartner Open Source Summit, September 2007

A type of software defined by its collaborative

development model, accessibility of code and

distribution models

This is in contrast with proprietary software which is only

available in a binary or “closed” format and typically carries

a license fee

So what is Open Source Software?

Red Hat develops only open source solutions Linux operating system

JBoss java-standard middleware

Pioneered software as a service concept Only market subscriptions

We actively contribute to the major open source projects Seven of the top linux kernel developers are Red Hat employees

Largest corporate contributor to linux kernel

40% of employees develop or support open source projects

Red Hat's role in open source

Deliver trustworthy, cost-effective solutions based on the

best of collaborative development

Open

source

projects

Technology

development

communityRed Hat solution

ecosystem

Text book example: RHEL5 Linux

One fee covers everything:

Software

Red Hat Enterprise Linux or JBoss java middleware

Certifications

Over 3,200 certified applications, over 1,100 certified systems

Upgrades to new versions and maintenance

Red Hat delivers new features, bug fixes and security updates

Enterprise-class technical support

Up to 24x7 with 1 hour response & unlimited calls

100% RHCE staff

Software as a subscription

Government Adoption Trends

Worldwide, 265 government policy initiatives ranging from pilot projects to preferences (and even mandates) for the use of OSS (Center for Strategic and International Studies – April 2006)

Most OSS policy initiatives are in Europe (47%), Asia (27%), LATAM (15%) followed by N. America (9%)

Local/state level more likely to be approved by council/legislative action

***Data taken from CSIS Study on Government Open Source Policies

Public sector organizations must cut costs in an environment of software upgrades, security issues and piracy

The level of acceptance of open source has been raised

The need to provide increased access for business and people

To promote a local software industry

The software can be shared

“ NOBODY IS AS SMART AS EVERYBODY”

Why Governments move to open source

No risk software development model

Minimal capital required to do a POC

Develop an indigenous industry

Ability to customize the software

Fulfil a commitment to democratizing knowledge

Reduce the cost of IT purchases

How Governments benefit

U.S. Air Force

DISA

Army

Navy

Marine Corp

Coast Guard

NASA

FAA

DHS

NOA

Census Bureau

DOJ

GSA

Energy

PTO

U.S. Courts

How prevalent is Linux in Government?

All cabinet-level departments in the Federal Government and

State and Local governments across all 50 states are running

linux.

U.S. Federal Government OSS users

25

City of New York DoITT City of Chicago Penn State University University of Michigan City of Houston Louisiana Health & Human Services City of Philadelphia Los Angeles County State of North Carolina ITS Minnesota Department of Natural Resources California DOJ Johns Hopkins University University of Phoenix Miami-Dade County, FL University of Chicago Massachusetts ITD Wisconsin DET Georgia University System NY State Insurance Dept. MD Anderson

Connecticut DoIT Indiana University Florida EPA NC DPI Minnesota DOT Pennsylvania OIT DeKalb County, GA NC University System Henrico County, VA City of Seattle Purdue University Arizona State University MIT CUNY & SUNY University of Texas Florida Department of Health Carnegie Mellon University Baltimore County, MD Emory University City of Los Angeles

Sampling of 5,000+ users in the U.S.

Background: Large municipal government

Goals: Reduce costs, migrate to flexible platforms

Previous infrastructure: Sun Sparc / Solaris

Solution:

Platform: Red Hat on HP / Intel servers

Applications: Oracle 9i, Legato, HP MSL Tape Library

Services: Red Hat, HP and System Solutions Inc (SSI).

Benefits: 3x performance improvement, lower server acquisition and maintenance costs, increased hardware options

Results: Given the success of their first project, most of the City's database and infrastructure servers have been migrated to Red Hat (60+ to date)http://www.fcw.com/article96236-09-27-06-Web

Case Study: City of Chicago

Background: Central IT agency for the state

Goals: Drive costs down, lower charge-back rates to clients

Previous infrastructure: HP, Sun, IBM Unix servers

Solution:

Platform: Red Hat on commodity servers (HP, Dell, IBM)

Applications: Various from many agencies

Services: Red Hat training & certification

Benefits: RHEL is the state standard, costs are much lower and now more predictable, staff have enterprise level linux skills

Results: More competitive charge-back rates has allowed them to recapture department clients previously lost

Case Study: North Carolina ITS

Many ministries have switched to Linux and other OSS

“The number one reason for this change is economic”

- Sergio Amadeu, National Institute for Information Technology (BBC, 2005)

Plan open source when digitizing the Federal court system

State of Parana

adopting eGroupWare, MySQL solution for its 10,000 users

“The world of technology is opening up; there are hundreds

of thousands of people working to improve free software.

The old, closed model must adapt in order to survive.”

Cerqueira Cesar, Head of IT, Banco do Brasil

Focus on Brazil's government

State Government of Kerala

Announced in 2006 it will be a completely FLOSS zone

Deploying linux in 12,500 schools

Goa, Tamil Nadu, West Bengal using linux to save costs

on e-governance

Sam Pitroda, National Knowledge Commission: “...we

must actively encourage wherever possible open source

software implementations and open standards.”

Several national and local government projects to

distribute OSS freely in local languages

Focus on India's government

Institute of Microelectronic Systems established OS R&D

group; maintain Asian Open Source Centre

Created Malaysia Open Source Competency Center

Administration Modernization and Management Planning

Unit created Open Source Competency Centre and wrote

a government-approved OSS plan

Migration roadmap for e-mail, browsers first, then

databases

Focus on Malaysia's government

Gartner's App Server Magic Quadrant

Gartner's App Server Magic Quadrant

34

Other Industry Opinions

Aberdeen Group

Open source portal solutions cost ½ to 1/3 of traditional

solutions

Rapid growth in portal segment is traced primarily to the

low cost of entry for open source solutions

Robert Francis Group

Linux is 40% less expensive than Windows for hosting web

applications on the x86 architecture

http://www-03.ibm.com/linux/whitepapers/

robertFrancesGroupLinuxTCOAnalysis05.pdf

35

Key Drivers:

Simple

Open

Affordable

Service Oriented Architecture benefits:

Easier integration

Greater code re-use

Reduced development costs

Rapid component reuse

HRFinance

VerticalApps

Can Open Source play in SOA?

JBoss Microkernel

Applications, Web Services, and Business Processes

Multi-Vendor JVM, OS, Platform

JBos

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JBos

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Open source Java Middleware

37

Typical Projection:

Assumptions: BEA WebLogic Premium license price = $17,000/CPU; includes 1 year support 30% discount on license price, Annual support & maintenance = 21% of list license price Start with 32 CPUs deployed and add 16 CPUs in years 2 & 3

Open source (no fee) licensing model

Background: IT for the Commonwealth of Massachusetts

Goals: Drive down the cost of the application server tier

Previous infrastructure: BEA on HP-UX Unix

Solution:

Platform: JBoss Application Server, JPortal

Applications: SIRS, eLicense, Mass.gov state portal site

Services: JBoss Services

Benefits: Delivering more performance for 1/3 the costs

Results: Migrated from HP-UX Superdome to IBM Blade Server for significant cost savings. Like the 'one vendor solution.'

Case Study: Massachusetts ITD

Background: State Courts

Goals: Drive down the cost of the application server tier

Previous infrastructure: BEA on Unix

Solution:

Platform: JBoss Enterprise Middleware Suite (JEMS)

Applications: UCS (Court Case Management Systems)

Services: Unisys Professional Services

Benefits: Delivering same performance for ¼ of the cost

Results: Have migrated 5 court applications from Weblogic to JBoss Application Server. Standardized on one vendor for entire stack needs.

Case Study: New York State Unified Courts

Did You Know?

Content Management

Business Intelligence

ERP

CRM

Email / Collaboration

Back up & recovery

Systems monitoring

Database

41

Layer-by-layer, open source is changing the value equation

Customers have increased leverage & choice

Global File

System

MPIO

Red Hat Enterprise Linux

JBoss Application

Platform

JBoss Portal Platform,

JBoss jBPM, Rules

JBoss SOA Platform,

MetaMatrix

Veritas

Storage Suite

EMC PowerPath

AIX, HP-UX, Solaris

BEA WebLogic,IBM WebSphere

BEA/IBM Portal, BEA BPM, ILOG JRules

BEA AquaLogic, IBM ESB,BEA DataServices,IBM EII

$60,000/CPU

$50,000/CPU

$10,000/CPU

Bundled w/HW

$2,500/host

$4,500/CPU

---------------

$500,500

$10,000/Server

$3,375/CPU

$1,688/CPU

$2,500/Server

Inc. w/RHEL

Inc. w/RHEL

---------------

$32,750

Open Source is Changing IT Economics

<--- 4 CPU Configurations --->

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