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Software Industry Issues

Explore the dynamics of the software industry, trade liberalization, market distortions, and industry responses in the context of regional associations. Understand the software ecosystem, trade liberalization's impact, industry responses to market preferences, and initiatives for network security. Delve into the importance of interoperability in the IT industry and the diverse needs of customers and governments. This comprehensive overview sheds light on crucial issues shaping the software landscape for stakeholders.

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Software Industry Issues

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  1. Software Industry Issues Mark Lange Microsoft EMEA March 1, 2005

  2. Agenda • Perspectives on regional associations • The software ecosystem • Trade liberalization • Market distortions • Industry response • Trusted computing • Interoperability

  3. Regional Associations • The EICTA experience • European ICT Association • Composed of national associations and individual regional/global firms • Credible voice of industry in region • Challenges • Living up to expectations • Basic education about the industry, local markets, small businesses • Raising awareness about benefits to society

  4. The Software Ecosystem Industry Intellectual Commons Customers Government

  5. Software Ecosystem • The software ecosystem built on the work of governments, academic institutions, private research, commercial organizations and individuals. It represents a wide range of development, distribution and licensing practices. • Legal regime, IT skills, trade encourage the cycle of innovation that makes up the software ecosystem • History has shown that a healthy independent software industry creates: • More innovation • Ongoing improvements in price-performance for software, hardware, and services • Mass market that makes computing affordable for businesses and consumers • Greater productivity and economic growth

  6. Trade Liberalization • Market access, national treatment • Key element of an enabling environment for software industry • Impact on competition, prices, IT usage, investment, productivity, exports, growth

  7. “Shaping” the software market • Preferences for some software based on: • Nationality of supplier • Type of software • Other political factors • Often arising in context of government procurement policies • Preference policies reflect several legitimate government concerns (economic development, security, cost) • But preferences are not the answer for a sustainable ecosystem • Not consistent with policies of access, competition and equal treatment

  8. Current example: Kenya • Current proposal: • Bias for national supplier • Bias for open source software • Impact: • “favors” distort the market, trade and investment incentives • National and foreign firms want predictability, nonintervention, and choices based on quality

  9. Industry response • Policy positions supporting • competition on the merits • technology neutrality in government policy • interoperability and use of open standards • intellectual property protection

  10. Industry response • Many trade associations have issued policy positions for technology neutrality • National IT associations in Belgium, Bulgaria, Denmark, Germany, Italy, Portugal, Spain, Sweden, UK • International Chamber of Commerce • Business Software Alliance • Initiative for Software Choice

  11. Network Security • Microsoft efforts: Trustworthy Computing Initiative • integrate security solutions into all aspects of the computing environment (improving the process of developing/updating software, expanding security training for customers and partners, and developing new technologies to protect users from malicious attacks online) • global regulatory co-operation in fighting cybercrime • essential because information systems and communications are inherently trans-border in nature • successful only if there is cooperation among key stakeholders, including industry, government, users and law enforcement • network security initiatives must respect personal liberties and privacy

  12. Customers Governments • Flexibility • Cost Reduction • Healthy IT ecosystem • Promoting choice, innovation • eGovernment initiatives • Social and Political issues Interoperability IT Industry • Technical business necessity • Reduce costs • Customer value Interoperability

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