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FOSS and Commercial Software UNCTAD Experts Meeting September 23, 2004

FOSS and Commercial Software UNCTAD Experts Meeting September 23, 2004. Mark Lange Senior Attorney Microsoft Corporation mlange@microsoft.com. agenda. FOSS and the software market Evolving Commercial Models Learnings and Adaptations Microsoft sharing code and IP

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FOSS and Commercial Software UNCTAD Experts Meeting September 23, 2004

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  1. FOSS and Commercial SoftwareUNCTAD Experts MeetingSeptember 23, 2004 Mark Lange Senior Attorney Microsoft Corporation mlange@microsoft.com

  2. agenda • FOSS and the software market • Evolving Commercial Models • Learnings and Adaptations • Microsoft sharing code and IP • Working with Government to Address the Underlying Issues • Digital Divide and Economic Development

  3. Business Models Licensing Models Open Standards VS. VS. Separate Topics of Discussion Development Models Role of IP, Economics, Public Policy… Product Competition, Consumer Choice VS. OR

  4. FOSS and Commercial Use IBM Apple Sun HP Novell SAP Oracle Microsoft Customer Benefit Red Hat CollabNet VA Software Ximian SuSE Sendmail MySQL Sleepycat * Software Business Model • OSS is positive influence for most major software companies • Increased product and services competition • OSS vendors are directly commercializing their solutions • Customer demand for value is still primary driver * acquired by Novell

  5. Software Production Community Academia Commercial (traditional) Governments Competition Free Software Hobbyists Industry (Non-Software) Open Source Functionality Public Domain IT Development Software Vendors Shareware Intellectual Property • There is no “correct” way to produce software • Interaction of multiple models has produced best results • Development model has little impact on production use

  6. Access to Microsoft Source Code • Learning from our customers and OSS • Microsoft is sharing source code with customers, partners, and governments worldwide • After 3 years there are 17 Shared Source programs being used by >1M developers in >60 countries. • Most programs allow modification of code • www.microsoft.com/sharedsource

  7. Sharing Intellectual Property • Open standards • Microsoft has long been a strong proponent and active contributor to open standards • E.g. Web (W3C) and interoperability (XML) standards • Revised IP licensing policy • expanding IP licensing to cover a broader set of innovative technologies resulting from R&D • http://www.microsoft.com/mscorp/ip • Collaborative development • www.gotdotnet.com • Over 7,000 workspaces, developers sharing code and ideas to advance web services • Open application sharing • Emphasis on sharing solutions for eGovernment • Community of government, partners & developers sharing best practices, IP and solutions – many built on the Microsoft platform

  8. Looking at SourceForge http://sourceforge.net/ SourceForge.net is the world’s largest OSS development website, with the largest repository of code & applications available on the Internet 25% + of projects on SourceForge.net target the Windows platform Microsoft contributions to SourceForge: WiX and WTL Using OSS licenses Over 100,000 downloads Microsoft is already a significant platform for open applications…

  9. Sharing IP – and open document formats: XML schema example • Danish government input: • Need data interoperability for documents and ability of all citizens to access public documents • With Office 2003, Microsoft created open royalty-free license to XML reference schemas • Open to everybody, even competitors, at no charge, to enable them to read and write Microsoft XML files • Full specifications on the internet • Perpetual license • No restriction on who can obtain license • No sign and return of license necessary • www.microsoft.com/office/xml

  10. A balanced approach • Hardware, software and services companies have a variety of business models and commercial interests • Mixed environment = increased choices • Different models have different cost structures, different benefits and drawbacks, and enable a variety of opportunities for development • No one model can meet all needs • Different models can coexist • Governments as users can compare based on overall value, and as policymakers can stimulate all for economic development

  11. What is Microsoft doing with Government to address underlying needs?

  12. Memorandums of Understanding • MOUs are public/private partnerships • Governments and international organizations want to be more than just customers • They expect global businesses to demonstrate corporate social responsibility, assist local economic development, improve skills training, help education efforts… • MOUs are driven by a government’s or international organization’s priorities • MOUs are not exclusive

  13. Europe 195,000 Asia and Pacific Rim 74,000 North America 402,000 Africa, Eurasia & Middle East 17,000 Australia and New Zealand 27,000 Latin America 57,000 Enabling Local Opportunity Majority of revenues generated by solutions that use Microsoft products stay in country* Global Partner Community Source: Microsoft “Creating a Vibrant Information Technology Sector: Growth, Opportunity and Partnership” (2003)

  14. The Digital Divide • Educators and Government officials have told us that teaching and learning methods of today will not bridge the Digital Divide • You recommended • New approaches to education • Public/Private Partnerships to tackle the problem • In response to this challenge Microsoft has launched several initiatives…

  15. Partners in Learning: Improving technology access in the classroom Teacher training Low- and no-cost software licensing for donated PCs Unlimited Potential: Developing technology skills in the community Community Technology Learning Center (CTLC) funding & curriculum Technology Support Network Venture Fund Awards Bridging the Gap Partners in Potential

  16. Partners in Learning: Impact • Public/Private Partnerships (through MOUs) = 95 in 71 countries • Partnerships established with Government/ NGO/ Education/ Commercial partners = 563 • Donated PCs re-licensed = 700,000 • www.microsoft.com/education/PartnersinLearning

  17. Unlimited Potential Mission: • Support for community technology centers to broaden digital inclusion and create social and economic opportunities Key Program Components: • Grants: Hire trainers • Tools: Software, Refurbished PCs and Curriculum • Partnerships • Community Technology Support Network • www.microsoft.com/mscorp/citizenship

  18. Enables linguistic and cultural groups to benefit from IT advancements Supplies tools to build local skills and develop community solutions Local groups build their own IT glossary with standardized terminology Local group uses the glossary to build their own Language Interface Pack (LIP) for Windows XP and Office 2003 Standard Edition Local groups can then build community solutions utilizing these platforms http://www.microsoft.com/resources/government/locallanguage.aspx Local Language Program

  19. Educational System E-Government Government-funded Research Intellectual Property Protection Working Together to Maximize the Technology Economy Hardware Software Services

  20. ANNEXExamples of Digital Divide Programs

  21. Unemployment Graduate in North Africa • 200 unemployed university graduates • IT skills development, Internships at Private Sector and Career counseling workshops • Career Fair and Job opportunities through Partners • 60% had secured jobs before program completion, 90% are still in the Jobs Preparing Unemployed University Graduates to Workforce In Partnership with:Local industry and Government of Morocco

  22. Jordan Knowledge Station Towards a Knowledge Base Society • Technical Support for 85 existing Knowledge Stations • Capacity Building through ‘Trainers the Trainer’ program and IT skills development programs for the community • Implementing Community based projects • Developing a Management & Sustainability Programs for the knowledge stations to ensure growth and sustainability • Evaluation and impact assessment In Partnership with: King Abdullah II Fund, National Information Center, Ministry of Planning & Education, & Local NGOs & communities

  23. Think Quest Africa Young people: Critical Learners and Thinkers • African youth contributing to the knowledge society through New Style of learning program • 2,500 learners, educators, parents, from 17 African country participating in TQA in the course of 2 years • 1400 youth from 11 African country has received training on IT skills develop in 04 • 54 Africans youth had developed winning web sites from 7 countries • Library with more than 1000 educational web site • Collaboration, engage learning, teamwork, IT & management skills In Partnership with: School Net Africa, Ministries of IT & Education, and Local NGOs

  24. Community Technology Learning Centres – South Africa • 32 Digital Villages • Provides training, Internet access, software and books • Career development • Helps disabled students Villages and Community Development In Partnership with: Government, NGOs and Civil Society & Local Communities

  25. Windows XP Starter Edition • Government feedback helped drive this initiative • Heard directly about the unique needs of emerging markets • Affordability and localization keys to help address digital divide challenge • Windows XP Starter Edition -- designed for first-time home PC users. • Will be piloted in five countries, starting with Thailand, Malaysia and Indonesia, to gauge the reaction of consumers and the local impact on the technology industry. • Microsoft will be evaluating the impact and feedback of Windows XP Starter Edition in early 2005 before considering distributing the product further. • Windows XP Starter Edition facilitates an affordable and localized introduction to personal computing for new users because it is offered at a lower price and offers unique local language and cultural features designed for novice home PC users • This version of Windows XP has unique features and benefits: • Localized and tailored support • Localized customization. • Pre-configured settings • Simplified task management

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