Open Source vs. Proprietary

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2 Open Source vs. Proprietary Software: Decision Criteria: Jim Barrington, SMS for Life Novartis, Switzerland, May 8 th. 2012

3 Open Source vs. Proprietary Open Source software (OSS) is computer software that is available in source code form: the source code and certain other rights normally reserved for copyright holders are available under an open source license that permits the users to study, change, improve and at times to distribute the software. Open source software can be community based (free) or commercially based (managed by and charged for by vendor) Proprietary software is computer software licensed under exclusive legal right of the copyright holder. The licensee is given the right to use the software under certain conditions, while restricted from other uses, such as modification, further distribution, or reverse engineering Proprietary software can be distributed either under a free or chargeable license.

4 Sample Health System Technical solution at scale

5 Open Source vs. Closed Open Source is a licensing or business model Open Source Proprietary Commercial Open Source Yearly maintenance License + Yearly maintenance Provides support and legal indemnification Community Open Source Free Freeware or Shareware Normally no formal support Should be viewed as any other software and supported enterprise versions procured when available. 5

6 Choosing a solution that will operate and be sustainable at scale requires a Holistic approach.

7 The How : Solution Provider Approach Criteria to select your solution provider (partner) for country scale mission critical solutions: Proven track record of successful large-scale implementations Ability to execute (breadth and depth of capabilities) Implementation approach (e.g. centralized vs. decentralized, classroom vs. on-line training) Performance parameters and service level agreements (SLA) Post go-live support approach Project management (process analysis, relationship management, resource allocation, ability to meet project timelines) Long term solution support (upgrades, enhancements) Process knowledge and technical expertise (platform, architecture) Company vision and strategy, financial viability

8 The What : Software Functionality To enable optimal support of the target processes the product functionality must satisfy: Flexibility (adaptation to changing needs, upgrades) Scalability (from pilot to country wide deployment) Usability (user friendliness, training) Compliance (legal, regulatory) Maintenance (partner resources, user resources) Technology (state-of-the-art and forward looking with future sustainability)

9 How Much? -- Optimizing Total Cost of Ownership (TCO) Calculate TCO of your solution over a period of minimum 5 to 7 years Rigorously include all cost elements such as: Hard/tangible costs (licenses, people, training, implementation) Data Center operations Network operations Database administration Systems maintenance and evolution User support (training, helpdesk) Infrastructure re-investment Software support Hardware depreciation/replacement/investment

10 Avoiding surprises : Measure risk A sustainable solution should minimize potential risks in several areas: Management Approach Pricing/Contract Structure Change Management Compliance Product Project delivery Operations Future support (support by partner vs. need to support by user) Access to source code

11 Deloitte & Touche study First time buyer selection Experienced buyer selection

12 The Opportunity for Africa the mobile phone solution of the software world. Cloud computing refers to the delivery of computing and storage capacity as a service to a heterogeneous community of end-recipients. The name comes from the use of clouds as an abstraction for the complex infrastructure it contains in system diagrams.

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14 Software as a Service & Cloud Computing No Capital Expenditure, Pay-as-You-Use, Scale-as-Needed Reduced Cost Cloud technology is paid incrementally, saving organizations money. No need for complex and expensive data centers Speed Rapid implementation Highly Automated No longer do IT personnel need to worry about keeping software up to date. Flexibility Cloud computing offers much more flexibility than past computing methods. Easy, fast and low cost to scale storage More Mobility Employees can access information wherever they are, rather than having to remain at their desks Allows IT to Shift Focus Reduced requirement for scarce IT technical skills, no longer having to worry about constant server updates and other computing issues, organizations will be free to concentrate on business process improvement and innovation

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16 Thank You Jim Barrington, SMS for Life Novartis, Switzerland, May 8 th

17 The Open Source Definition Introduction Open source doesn't just mean access to the source code. The distribution terms of open-source software must comply with the following criteria: 1. Free Redistribution The license shall not restrict any party from selling or giving away the software as a component of an aggregate software distribution containing programs from several different sources. The license shall not require a royalty or other fee for such sale. 2. Source Code The program must include source code, and must allow distribution in source code as well as compiled form. Where some form of a product is not distributed with source code, there must be a well-publicized means of obtaining the source code for no more than a reasonable reproduction cost preferably, downloading via the Internet without charge. The source code must be the preferred form in which a programmer would modify the program. Deliberately obfuscated source code is not allowed. Intermediate forms such as the output of a preprocessor or translator are not allowed. 3. Derived Works The license must allow modifications and derived works, and must allow them to be distributed under the same terms as the license of the original software. 4. Integrity of The Author's Source Code The license may restrict source-code from being distributed in modified form only if the license allows the distribution of "patch files" with the source code for the purpose of modifying the program at build time. The license must explicitly permit distribution of software built from modified source code. The license may require derived works to carry a different name or version number from the original software. 5. No Discrimination Against Persons or Groups The license must not discriminate against any person or group of persons. 6. No Discrimination Against Fields of Endeavor The license must not restrict anyone from making use of the program in a specific field of endeavor. For example, it may not restrict the program from being used in a business, or from being used for genetic research. 7. Distribution of License The rights attached to the program must apply to all to whom the program is redistributed without the need for execution of an additional license by those parties. 8. License Must Not Be Specific to a Product The rights attached to the program must not depend on the program's being part of a particular software distribution. If the program is extracted from that distribution and used or distributed within the terms of the program's license, all parties to whom the program is redistributed should have the same rights as those that are granted in conjunction with the original software distribution. 9. License Must Not Restrict Other Software The license must not place restrictions on other software that is distributed along with the licensed software. For example, the license must not insist that all other programs distributed on the same medium must be open-source software. 10. License Must Be Technology-Neutral No provision of the license may be predicated on any individual technology or style of interface. Source: OSI website.

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