A recent IDC report on piracy in Brunei states that for every $1.00 spent on software licenses, an additional $1.25 is also spent in value added services.
Why is this important to us? And why is an OSS friendly guy blogging about software licenses?
Turn the equation around.
More after the break:
Try read it this way –> Every $10 in spending on ICT can be roughly split up as 44% on software licenses, and 66% on value added services.
Implication –> For $1bn we spend on ICT in Brunei, 44% goes directly into the pockets of overseas businesses. So we only get a 66% “yield” that is ploughed into our local economy. But then again, not all of that 66% slice of the pie will go to local businesses. More likely than not, it has to be shared again between local agencies and their overseas principals.
Open Source Software (OSS) represents the key to stemming this tide. Lets say for example, a local ICT business invests in open source database tools. A policy decision is then made to encourage ICT users in Brunei to “Buy Brunei” (through tax breaks and fast-track approval processes). Bingo! Big win for Brunei’s nascent ICT industry. Unbottling local demand for products and services, improving the yield ratios for local investment in the local industry and improving supply of innovative “Made in Brunei” ICT-related products in one swoop.
Also note the recent changes in Brunei’s Withholding Tax. Localising and shifting “production” of digital assets to Brunei from overseas is becoming more and more feasible in these Internet 2.0 times. If anything, the new WHT rules discourage local ICT users from buying overseas products, and a move to incentivise supporting Brunei’s local OSS industry would dovetail nicely with the WHT rules.
Author’s note: if you want to see this report, let me know. I know a guy who knows a guy who should be able to share this.
Related posts:
- Open Source in Brunei Darussalam [Presentation] Six months ago I gave this presentation to a group...
