Comment: NZ Government must change approach to procurement

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The recent European study into the impacts of Open Source on technological independence, competitiveness and innovation in the EU economy gives the New Zealand government and tech sector some real inspiration for how we could build a prosperous, open, and trusted digital future in Aotearoa. But it will take a cultural adjustment – and some courage – to get there.

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In a beautifully crafted report, the authors describe both the massive positive impacts that Open Source has been having on the EU's economy for the last twenty years, and the enormous untapped potential of further political action and investment.

Unlike proprietary software, Open Source software is a public good, made freely available to all. Anyone in the world can download it, review it, improve it, and use it – including commercially. Open Source software is created once but used many times, in many different contexts, thus creating an engine for innovation and a powerful economic multiplier.

What kind of multiplier? The European study estimates a staggering cost-benefit ratio of 1:4 when investing in Open Source rather than proprietary software – that's a glaring opportunity if ever I saw one, especially when you consider the $2.6 billion the NZ government is expected to spend on IT in 2022.

The verdict from Europe is resounding: "Overall, the benefits of Open Source greatly outweigh the costs associated with it."

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Let's take a closer look at France, for example: a nation brimming with pride, flair, passion and independence. And that last word may be the key to the whole thing – the French have a strong notion of "digital sovereignty" which is present in public debate, and Open Source is often mentioned in the same breath.

The average person on the boulevard is likely to know what Open Source is, and also why it's important for their country.

The French take it further, with laws requiring government departments to consider Open Source when procuring software; and to consider procuring new Open Source software, or open-sourcing existing software when making major revisions to existing applications.

Other European countries share similar views on digital autonomy and technological sovereignty. They have long understood the very real threats to their independence, the dangers of economic subjugation, and the effects of geopolitical and technological dependence. And they have responded by investing in solutions that foster independence, openness, trust and prosperity.

Technology leaders in Aotearoa New Zealand must respond in a similar way, by openly talking about our digital sovereignty issues, by questioning our reliance on vendors that lock us in and don't participate in the circular economy, and by embracing the opportunities that Open Source presents us.

Several high profile government projects have recently gone to proprietary overseas suppliers; the NZ Immunisation Register and the RealMe digital identity service are just two examples.

These nationally critical services could and should have been delivered onshore, within NZ's sole jurisdiction, and Open Source solutions should have been actively sought.

Doug Dixon. Photo / Supplied

In the public sector, every technology choice is a promise to keep citizens and their data safe, to spend taxpayer dollars in the best possible way, and to promote an open and equitable society. Open Source directly enables these broader goals of public procurement, and should always be considered and promoted.

Technology leaders will inevitably need to have some hard conversations with their vendors, and make some bold decisions to innovate and invest locally. But the benefits of pivoting investment towards Open Source are simply too big to ignore.

Doug Dixon is CEO of Catalyst Cloud.