Thomas Myrup Kristensen Special adviser Ministry of Science, Technology and Innovation The Danish policy on Open Source Baltic IT & T Conference 2005, Riga, April 6 - 9th, 2004

State of eGov in Denmark Denmark consistently ranked in the very top of eGovernment studies Government wide IT-architecture framework taking shape – Focus on openness Use of XML is spreading rapidly - Central XML repository in place Structural reform making progress even more important

Open source – policy aspects EFFECTIVENESS INNOVATION COMPETITION SECURITY STABILITY EFFECTIVE NESS EDUCATION EQUALITY ACCESS DEMOCRACY INDEPENDENCE

The Danish Board of Technology - Macroeconomic impact of OSS Short run (4 yr)Long run (12 yr) Desktop systems mil. Dkr mil. Dkr. Internet servers1.000 mil. Dkr.- Egov systems400 mil. Dkr mil. Dkr. Total pr. year3.700 mil. Dkr mil. Dkr. Approx. 7,5 Dkr = 1 €

On what level must open source pay off? A public institutions IT-expenses A Public Institutions expenses The Public Sectors expensesSociety Complexity in measuering

THE DANISH SOFTWARE STRATEGY  Maximum value for money regardless of software type  Competition, independence and freedom of choice  Interoperability and flexibility  Development and innovation  Decision to be taken locally

The initiatives  Open source software development method used  A TCO model  Open source pilots  Open standards – doc.std’s  Software supply  Information gathering and dissemination

Six pilots projects plus one Corel Lotus Smart- suite MS Office 97 MS Office 2000 OpenOffice.org MS Office 2003 Næstved Municipality Psyciatric Hospital in Århus Region Danish Consumer Agency Business School of Aalborg Ministry of Justice - Departementet Ministry of Justice - Civilretsdirektoratet Roskild e Munici- pality

Value model -Defined by quality -Related to: -Funktional quality -Technical quality -Meassured by indicators Value model -Defined by quality -Related to: -Funktional quality -Technical quality -Meassured by indicators Best solution Best price Migration model -Defined as project investment -Related to: -Project planning -Design -Development and test -Implementation -User training -Meassured on ressources and actual costs Migration model -Defined as project investment -Related to: -Project planning -Design -Development and test -Implementation -User training -Meassured on ressources and actual costs Cost model -Defined as TCO -Related to: -User resources -It-ressources -Hardware -Software -Exsternal IT -Meassured on ressources and actual costs Cost model -Defined as TCO -Related to: -User resources -It-ressources -Hardware -Software -Exsternal IT -Meassured on ressources and actual costs Basis information Effect on the business proceses Evaluation model

Migration and meassure points Normal operationMigration Migration measurement Pre- measurement Post- measurement Desktop A Desktop B Preparation Value Desktop TCO Basic information Migration Cost Basis information Value Desktop TCO Basic information

Migration barriers Office Application EDH Journal ORGANISATIONENVIROMENT INTEGRATION DOKUMENT EXCHANGE

Study conclusions OpenOffice.org and MS Office are both adequate products for the public sector: No meassuable difference on the business processes between the two products. The users evaluation of the functional fit of both products are good (provided that projects are well implemented) The IT-departments evaluerings of the technical quality of both products are good. The migrations projetcs are manageable. The cost structure for the two products are the same. Only difference relates to license costs. This is approximately 4% of the TCO (inkluding both direct and indirect costs).

Source: Gartner Group Cost evaluation – distributed systems Software expenses average 5,4% of TCO (direct and indirect) and 12,6% of direct costs Costs: 44% direct, 56% indirect

Conclusion ”Loosely coupled” Egovernment is the way forward – open standards central That makes it natural to consider the value of open source But do not isolate the open source issue from the other Egovernment issues Open source must prove itself as value for money

Thank you! Thomas Myrup Kristensen phone