Monetizing the "Technology Bypass"

There's a quiet technology revolution taking place today right before our eyes, and the world's developing economies such as India are leading the way.

What's happening is a new, global "technology bypass" that is replacing traditional models of technology adoption and how its basic infrastructure is assembled.

Stage one is the mobile phone. In emerging economies today, mobile phones are quickly leveling the economic playing field because in contrast to traditional telecommunications systems, where dependence on fixed line installation means that it takes considerable time to actually get people connected, mobile systems enable more immediate connection, tend to be less expensive, and are easier to navigate. The result is the beginning of an exciting new era of small business creation in emerging nations built on the back of the less-expensive, but more innovative, mobile telco systems. The openness created by these systems unleashes the power of creativity, whether that means using these technologies for mobile banking in Uganda or increasing the efficiency of fishermen here in India. The numbers to prove this are startling: currently there are 2.7 billion mobile phones in use — more than half of the world's population. India alone is home to more than 300 million mobile subscribers, and the International Telecommunications Union now reports that 68 percent of the world's mobile subscriptions are in developing nations.

Stage two of this technological bypass exists at the very core of computing itself. Today, one of the great ironies of the Internet age is that such a vast portion of this global symbol for freedom and openness is dependent on closed, proprietary technologies and standards controlled by a tiny handful of powerful companies. In emerging markets, these expensive software and hardware systems are costly and have limited development in many cases.

But that is changing. For businesses and governments, the advantages of open source software and open IT standards are becoming too pronounced to ignore. Open technology is cheaper, more stable and offers far greater flexibility for enterprises seeking to scale and adapt at a 21st Century pace.

Our company, Sun Microsystems, has spent a great deal of time lately explaining how we can afford to give open access to our technology. Some have called us crazy. But think about it — if technology continues to evolve at its current pace, the real question will soon become: how can any technology company afford to cling to the costly, anti-competitive approaches of the past century?

For entrepreneurs in India and other emerging economies, the technological edge gained by adopting open technologies does more than just bolster the bottom line: it can mean the difference between success and failure.

This success comes via the opportunity to "create and add value" provided by open standards. Mere access limits Indians to the role of passive consumers in the knowledge economy. The ability to participate and create in an open standard regime transforms you into active participants and provides you economic benefit out of this participation that would have otherwise gone to individual nations or firms that are based outside the country. This is because the use of open standards enables local firms and individuals to create without any undue large investment in training.

Open standards allow developers to be members of communities and learn new skills collaboratively without any explicit payments. These skills help them in getting jobs or even in creating and sustaining small businesses.

India is growing as an economy and as an IT superpower. However, not all sections of the society are able to reap the benefits. One of the key contributors to this growing divide is the lack of access to IT in an economy that is rapidly getting digitized. This is not just about being able to buy an affordable computer. It's about ensuring that India arms its next-generation workforce with the tools of the 21st Century. Consider that 44% of the Indian population is under 19 years old and that working professionals will grow from 485 million to 615 million by 2010. India's success requires that those millions entering the workforce have access to low-cost computing enabled through open standards and open source.

Fortunately, India's governments are showing exemplary leadership. State governments in Tamil Nadu, Karnataka, Kerala, Madhya Pradesh, West Bengal, Delhi and Maharashtra have begun embracing open source.

Indian enterprises too are adopting open source. The reason is simple: lower costs, better performance, and increased security.

All of these open source activities have major implications in India and beyond. As as the network grows, more and more developers connect with their peers in open source communities. More and more software is shared. Best practices emerge and better technologies are created.

We are now at a similar bypass when it comes to information technology, and our future as an industry will be defined by the fundamental power of openness, whether that's open-source software or IT systems built upon open standards. This is a critical and exciting time for emerging markets like India — the opportunity is significant and we look forward to supporting you as you embark on your open journey.

Anil Valluri
Vice President & Managing Director
India GEM
Sun Microsystems