Oregon's Policy Development Framework for OSS Procurement

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Oregon's Policy Development Framework for OSS
Procurement Use

• Ben Berry
• Chief Information Officer
• Oregon Department of Transportation
• Oregon CIO Council Chair 2007-2008

Collaboration
Presented to Japan OSS Community February 22,
2008 Oregon State University Open Source Lab,
Corvallis, Oregon, U.S.A. 1148 Kelley Engineering
Center
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IT Procurement and Acquisition / Use Alignment is
Elusive

• On-Demand Processing
• Download and Use
• Fast-Track Acquisition
• Improved Cycle Time

• Due Diligence
• Policy
• Legality
• High Cycle Time

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Service Excellence Goals is the Driver
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Developing the Right Perspective is Critical!

• Goals
• Least Cost
• Competitive Processes
• Dependable Solutions
• Improved Efficiencies
• Community Sourcing Support

• Required
• Legality
• Process
• Compliance

A shared interest in ensuring efficiently
acquired, supportable solutions that drive
Best-in-Class Service Excellence and Competitive
Advantage.
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State of OregonOpen Source Community of Practice
Community Source Framework
Value Goal Enable Best-in-Class Service Delivery
Open Source Inventory Results Survey
Open Source Licensing and Acquisition

Leverage State Agencies
Desktop Software Evaluation
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So, how do we build Communities of Practice and a
Culture of Collaboration?
from http//xkcd.com
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So, what is a Community of Practice?

• 
  
• Groups of people who share a passion for
  something that they know how to do, and who
  interact on a regular basis to learn how to do it
  better
• - Etienne
  Wenger

Business Problem/ Oppty
Teams Charge
Process Method/Outcomes
Key Benefits
Business Objectives
Sponsorship/ Stakeholders
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Why put so much energy and resources into an OSS
Community of Practice?

• Oregon is a leader in open source innovation and
  uses Open Source Software as economic driver.
• New innovative development and sharing OSS
  applications is a dominant 21st Century business
  force.
• Principle of OSS is that users are provided
  source code IT programs, but are they really free
  to use, share, modify and enhance software
  products?
• The goal is widespread interoperability,
  permissive incorporation into new technologies
  and new systems, and control over the destiny of
  the systems employed by users and organizations.

1. 2. 3. 4.
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What is a Community of Practice?
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Non-Participating Agencies 48
Participating Agencies 52
Oregon Agencies Use of Open Source Products
The data gleaned from the participating agencies
provides a partial view of information that is
indicative of real usage of open source
software products within State of Oregon
agencies.
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Open Source Consideration
Cost Reductions
Customer wants IT solutions that are least cost
and competitive, but dependable.
Time-to-Market
Improving the efficiency of business operations
through fast-track acquisition practices.
Community Sourcing
Support performance through sharing of key Open
Source community resources.
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Oregons Open Source Software Inventory Project
Inventory
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Start
Oregon State Government Open Source Inventory
Process Map
No
Agency has
inventory tool ?
Yes
Determine list
of products for
search
Search for Open
Source inventory
End
Produce report
,
Project to report
send to Project
to CIO Council
Team for collection
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The Open-Source Stacks Growing Up
Products
Maturity
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Open-Source SW Instancesby Oregon Reporting
Agency
Gartner Open Source Categories
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Open-Source SW Instances by Agency
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Open-Source SW Instancesby Category Type
Oregon Reporting Agencies
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Open-Source SW Instances by Type
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State of OregonOpen-Source SW Products
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State of Oregon Open-Source SW Products
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Hype Cycle for Open Source Software 2007
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A Formal Enterprise Policy for Acquisition
and Use of Open-Source Software in Oregon State
Government May Be Essential to Effectively
Satisfy Enterprise and Agency Business Objectives
and Applicable Legal and Procurement
Requirements.
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Oregons Open Source Strategic Thinking

• State to acquire, maintain SW as valuable IP.
• Critical component of information del. strategy.
• Acquired with applicable law, regulation policy.

INTELLECTUAL PROPERTY

• State intends to acquire and use OSS as
  appropriate for projects and enterprise business
  objectives, while in legal compliance.

INTENT

• OSS has commercial value and is typically
  available via acquisition in conjunction with a
  reciprocal SW license.
• State applies a Total Cost of Ownership to assess
  price, i.e., full life cycle cost.

COMMERCIAL VALUE

• Currently there is no formal policy of OSS
  acquisition, use distribution.
• Intent is to modify current policies to create
  fair competitive arena for Best Value.

REQUIRED POLICY DEVELOPMENT

• State has authority to engage Closed Open
  Source software providers.
• States 7 sourcing procurement methods apply.

STATE AUTHORITY
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Seven (7) Types of Sourcing Methods
Financial Authority Non Competitive, Direct
purchase, Single supplier Informal
Competition Low Cost Selection Perceived Value
Selection Single Source, Product or both Normal
competition requirements Relaxed or
Suspended Special process when other sourcing
will not work effectively
Acquisitions 5K or less, or Gift 150K or
less Open Open Open Open Open
Sourcing Methods

• Small Procurement
• Intermediate Procurement
• Competitive Sealed Bidding
• Competitive Sealed Proposals (RFP)
• Sole Source Procurement
• Emergency Procurement
• Special Procurement

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Current Acquisition and Use of OSS

• The typical OSS Distribution Model involves a
  simple no-cost download of software from the
  Internet but growing Business-centric OSS
  Distribution Models include
• OSS and Services, i.e., OSS at no initial cost
  and related Service and Support at cost
• OSS Mixed, i.e., OSS with OS code base and Closed
  Source or Proprietary add-ons
• Proprietary OSS, i.e., applications available
  with a more traditional proprietary license that
  authorizes users to modify the application
  without having to redistribute code changes to
  the public
• Integrated OSS, i.e., diverse OSS already
  integrated into more consumable units and
• Hardware and OSS, i.e., Hardware manufacturers
  using OSS as a foundational component in system
  operation.

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Current Acquisition and Use of OSS

• State OSS Usage. Despite not having a formal,
  enterprise-level OSS acquisition and use policy,
  State Government has acquired and uses OSS.
• Staff OSS Downloads. Over time, the products
  have appeared through multiple avenues in diverse
  agencies. The typical acquisition scenario may
  be a technicians perceived no-dollar cost
  download of particular OSS ( or Freeware or other
  procured software with embedded OSS) for some
  specific operational need.
• Vendor Bundling OSS. Vendors have also bundled
  OSS with their closed source solution sets. This
  is another way the organizations discover they
  already are using OSS.
• OSS Perceived Value. OSS has remained because of
  perceived business or technical value in its use.
• State Accountability. The State must account for
  its existing OSS inventory in order to develop
  effective policies around current and future OSS
  acquisition and use.

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Current Acquisition and Use of OSS

• States Risk Management. In reaping OSS benefits
  value, the State must remove or minimize its risk
  attendant to random acquisition and use of the
  software, e.g.
• OSS License compliance issues
• Inefficient maintenance and support
• Inconsistent buy decisions
• Maverick products that dont integrate and
  interoperate within the established architecture
  and enterprise
• Failure to fully realize cost savings
• Incomplete or non-existent technical, business
  and legal review and
• Violation of applicable law, regulation and
  policy.

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Procurement

• OSS as Gift? Most staff have likely perceived
  the typical OSS transaction of a no-cost download
  as a free gift, which does not implicate formal
  or even informal procurement considerations.
• License Acceptance. In particular, where the
  transaction ends with the staff members
  acceptance of an accompanying Software License,
  this assessment may not be supported by
  applicable law.
• Intellectual Property. The OSS constitutes
  valuable intellectual property. Acceptance of the
  accompanying license is valuable consideration in
  exchange for use of the downloaded software.

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Procurement

• Exchange Agreement. The parties have each
  benefited and sacrificed in their mutual
  agreement to exchange valuable items the
  essence of a contract.
• Recognition of Gifts. Moreover, the States
  current law does not recognize the concept of
  gift separately from the concepts of purchase
  or procurement. ORS 71.2010(32), ORS
  279A.010(u), and ORS 279B.050.
• Acceptance of Software License. The simple
  download of OSS in exchange for acceptance of a
  Software License implicates procurement issues
  and considerations for resolution.

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Oregons Findings To Date

• OSS as Viable Solutions. OSS development and
  distribution provide viable information systems
  solutions.
• OSS Maturity. OSS is maturing in its diversity
  of offerings and technical functionality, and is
  having a growing impact and increasingly
  noticeable effect on the Software industry.
• OSS as Competitive Alternative. Open-Source
  solutions will increasingly compete with a broad
  range of Closed-Source products in all markets.
• OSS is valuable IP, and is increasingly becoming
  a critical component of information enterprise
  strategies and infrastructures in local, state,
  national and global venues including the State
  of Oregon.

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Oregons Findings To Date

• Procurement Event? The acquisition of OSS should
  likely be regarded as a procurement event.
• Legality Process. The inherent value in OSS
  acquisition and use far outweighs the attendant
  risks provided OSS is consistently acquired and
  used in consonance with applicable law,
  regulation and established policy.
• Usage. The State should acquire and use OSS as
  appropriate for specific project and enterprise
  business objectives but should do so only in
  compliance with applicable law, regulation and
  established policy.

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Oregons Findings To Date

• Maximize OSS Utility. Development and
  implementa-tion of formal acquisition and use
  policies for OSS will maximize the utility of OSS
  use in all respects, including without
  limitation
• Functionality
• Integration
• Interoperability
• Management of acquisitions through a common
  efficient process
• Efficient management of acquired assets
• Ensuring license compliance and
• Ensuring compliance with governmental enterprise
  business objectives and public procurement law.

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Desktop Software Evaluation
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Open Desktop Evaluation ModelFour Layers of
Hierarchical Impact
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Conceptual FrameworkHolistic Approach to Desktop
PC Product Evaluation

• The Open Source Desktop initiative highlights the
  need for an unbiased approach to evaluating
  software for the desktop. The methodology used
  needs to encompass all of the normal business
  criteria, the work flow a user would follow to
  perform their job and the platform best suited
  for this type of work. Our work focuses on
• In-Scope The technical feasibility of
  instituting an open source desktop.
• Out of Scope Total cost of ownership,
  administrative desire, political will, and
  procurement and other legal issues will be
  addressed as follow on or parallel studies.

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Conceptual FrameworkHolistic Approach to Desktop
PC Product Evaluation

• Software Evaluation Methodology. While
  considering Open Source Software for the Desktop,
  one should separate the reviewing and testing
  portion of the open source software (OSS)
  applications from the reviewing and testing of
  the operating system.
• By doing so, allows a two-prong approach to
  evaluating the feasibility of incorporating the
  OSS application independent of the operating
  system.
• The advantage of this approach is in helping
  agencies determine the viability of OSS
  applications in their current IT environment,
  while avoiding the possibility that an open
  source operating system may have compatibility
  issues with a well establish IT infrastructure

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Solution Selection Criteria
Evaluates total cost of ownership elements to
reveal ongoing savings.
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SolvingBarriers to Entry

• Switching costs
• - End user training
• - Support staff training
• - Do apps work with new OS?
• If you have to buy closed source SW to enable
  open source SW, this changes the value
  proposition.
• Smooth integration to heterogeneous environment.
• Do you need to remove dependency of additional
  back office solutions to make things work? (Suse
  /Zenworks)
• End user experience can be fragmented if more
  than one Operating System is needed.

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Decision Tree

• Switching Costs
• Functionality
• Usability
• Reliability
• Productivity
• Supportability
• End User Experience

Click on document to launch!
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Open Source Community of Practice
Ask yourself, do we have a Culture of
Collaboration?
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Conclusions
Open Source Software Use in Oregon State
Government
Desktop Evaluation Methodology
The Goals Best-in-class Services, Technologies,
Processes and People in support of our Customers
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Thank You!
Ben Berry Chief Information Officer Oregon
Department of Transportation Oregon CIO Council
Chair 2007-2008
Collaboration
Presented to Japan OSS Community February 22,
2008 Oregon State University Open Source Lab,
Corvallis, Oregon, U.S.A. 1148 Kelley Engineering
Center