The European digital landscape is experiencing rapid change, with position papers and political statements published on an almost daily basis. This demonstrates the interest, importance and activity in this subject matter.
Despite 'brain-drain', Europe is rich with talent subscribed to the open ethos, with motivated individuals and groups leading digital projects of significance. These include FOSDEM^[About FOSDEM https://fosdem.org/2025/about/] which attracts an estimated 9000+ technical attendees, Odoo ERP^[Odoo https://www.odoo.com/] achieving 'unicorn' status^[Belgian unicorn Odoo raises €500 M, reaching a €5B valuation https://tech.eu/2024/11/21/belgian-unicorn-odoo-raises-eur500-m-reaching-a-eur5b-valuation/], many Open Source industry associations such as Association Professionnelle Européenne du Logiciel Libre^[APELL https://apell.info/] and the new EU Open Source week^[EU Open Source Week https://opensourceweek.eu/] plus policy development through Open Forum Europe^[OFE https://openforumeurope.org/] for just a few notable examples.
Citizens are inspired by these successes to be entrepreneurs and developers, and delivering benefit economy and society, constantly developing European digital capacity.
::: widebox A growing 'spinning reserve' of exceptional digital talent is actively working across European Open Source, Data, Hardware and Standards is largely ready to mobilise and support a leadership vision that is aligned with their values. :::
There is great optimism and progress across open communities yet times are hard and business is challenging in this nascent industry.
::: marginbox "many projects struggle to find a sustainable business model".
Mirko Presser, Associate Professor, Aarhus University
:::
Running a pure-play Open Source service business is challenging and such businesses sit outside formal statistics; these new business methods are not understood by regular business which operate on different principles.
Many technical leaders are not comfortable entrepreneurs and do not always invest in developing 'soft skills' so can experience discrimination in the formal business world. An ever shortening of sight in business means that it can be preferable to rent software that is ready now, than to invest strategically and develop competitive advantage for business and nation.
::: widebox
European cloud supply is unquestionably dominated by US proprietary software companies: Amazon Web Services, Microsoft Azure and Google Cloud hold approximately 69% of cloud infrastructure market share in Europe^[Synergy Research Group estimates, 2022.]. European suppliers such as OVHcloud and Deutsche Telekom hold only 13%^[https://www.srgresearch.com/articles/european-cloud-providers-continue-to-grow-but-still-lose-market-share]. Finally, 92% of the West’s data are stored in the USA^[https://www.redes-sociales.com/wp-content/uploads/2020/11/european-digital-sovereignty_oliver-wyman.pdf], in closed infrastructure owned and operated by offshore providers, exposing European data to extraterritorial legislation, particularly the US FISA law and the US Cloud Act.
ITRE-PR-768180
Within the Commission, there are reports that express concerns about this dominance.
With AI taking significant attention of policymakers, business and society, Open Source lost some focus. Given that many aspects of the AI conversation are subset of the Open Source conversation, priorities require reevaluating.
::: textbox "excessive power in the hands of a few non-European companies, risks associated with a single supplier (price hikes, migration difficulties), and the potential loss of in-house competencies"^[Internal documents reveal Commission fears over Microsoft dependency https://www.euractiv.com/section/tech/news/internal-documents-reveal-commission-fears-over-microsoft-dependency/]. :::
Politicising of software and technology has been reported, with national sanctions such as the blocking use of certain features by proprietary companies to classes of users^[Microsoft blocks Israel’s use of its technology in mass surveillance of Palestinians https://www.theguardian.com/world/2025/sep/25/microsoft-blocks-israels-use-of-its-technology-in-mass-surveillance-of-palestinians] as well as individuals^[Microsoft's ICC email block triggers Dutch concerns over dependence on U.S. tech https://nltimes.nl/2025/05/20/microsofts-icc-email-block-triggers-dutch-concerns-dependence-us-tech] by tech providers.
An immediate example of such risk is the ubiquitous website and application encryption system 'Lets Encrypt'^[Let's Encrypt is a Certificate Authority https://letsencrypt.org/] who's funding became uncertain during March 2025 - it was announced that funding for the Open Technology Fund (OTF), the organisation that funds this service^[OTF Supported Projects https://www.opentech.fund/projects-we-support/supported-projects/?sc=&filter1=&filter2=&order-by-selector=date-desc&pageno=1], has been withdrawn^[https://www.theregister.com/2025/03/25/otf_tor_lets_encrypt_funding_lawsuit/] as a result of a recent executive order^[CONTINUING THE REDUCTION OF THE FEDERAL BUREAUCRACY https://www.whitehouse.gov/presidential-actions/2025/03/continuing-the-reduction-of-the-federal-bureaucracy/] to close the United States Agency for Global Media (USAGM) department. A temporary reprieve was granted^[USAGM Reverses Course on RFE/RL and OTF Grant Terminations https://thediplomat.com/2025/03/usagm-reverses-course-on-rfe-rl-and-otf-grant-terminations/] - this example underscores the fragility of the global dependence of centralised offshore commodity critical infrastructure.
Most interactions with European states require use of proprietary or locked-in software, and somewhere between €10-€24 billion of public funds spent on software, with a small fraction invested in the European Open Source industry. As a result, most critical EU services such as emergency and local administrations depend on locked-in services for basic and commodity services such as email^[Gaeremyn, Jurgen, board member Digital Freedom Foundation, jurgen@digitalfreedomfoundation.org - EU Public Administration use of email services https://jurgen.gaeremyn.be/2025/03/08/european-critical-dependencies/].
::: textbox Reports suggest that USA capture up to 85% of global software revenue, whereas other estimates suggest 70-80% of this software is Open Source. See Economic perspective :::
This point was highlighted in the draft report on European technological sovereignty and digital infrastructure^[https://www.europarl.europa.eu/doceo/document/ITRE-PR-768180_EN.pdf https://www.europarl.europa.eu/doceo/document/ITRE-PR-768180_EN.pdf] (Rapporteur: Sarah Knafo). A counter-report providing alternative political priorities^[Counter report to Knafo https://www.euractiv.com/section/tech/news/rival-report-to-knafos-on-eu-tech-sovereignty-more-content-more-cautious/] is underway at the time of writing and is also expected to stress the importance of digital sovereignty.
First hand practical examples of the issues with the current proprietary landscape at the EU Commission are:
::: marginbox “Digital sovereignty needs deliberate support for Open Source, not accidental success.” Carlo Dafarra :::
- A switch from Skype to Teams within the Commission prevents staff from using 3rd party video conferencing tools such as the Open Source Jitsi application
- Video call software used by the Commission (Microsoft Teams, Google meet, Zoom, Webex ) are not interoperable with each other or Open Source options
- Surveys by projects on behalf of the Commission can be issued on a Microsoft platform, which requests the user to register for a Microsoft account to review their submission
- When visiting, simple functions like sharing screens with ClickShare require proprietary software installing and this only supports proprietary platforms such as Apple and Microsoft
Each one of these issues is addressable with Open Source software and standards, and through the local supply chain.
::: widebox In addition to being potentially in contravention to key EU policy, the implications of this inclide direct time wasted during valuable EU commission interactions, forcing of external people to register with foreign proprietary companies to undertake the most basic of operations, and sets a clear message that the Commission favours offshore proprietary software and providers over it's own industry; this effect is multiplied across European establishments. :::
::: marginbox "With each IT service our government moves to American tech giants, we become dumber and weaker,"
Dutch MP Barbara Kathmann :::
On the ground, a lack of standard compliance across dominant applications creates everyday frustrations and time wasted for users. Often, the naive user may assume that locked-in software is not the problem, and instead conclude that it is a weakness in an Open Source technology. Examples include failure to adhere to calendaring standards^[Microsoft Outlook: Internet standards compliance https://en.wikipedia.org/wiki/Microsoft_Outlook#Internet_standards_compliance], withdrawal of messaging standards^[https://en.wikipedia.org/wiki/Vendor_lock-in#Google] or use of customised and firewalled messaging^[WhatsApp uses a customised version https://en.wikipedia.org/wiki/WhatsApp#Technical]. As these applications are proprietary, it is not feasible for the user to address the issues.
::: widebox European dependency on proprietary tech isn't the fault of USA or any other foreign nation - it is a result of choices at every level of European buying. These choices do not necessitate judgements as good or bad, but acknowledgement that they are choices; therefore new and informed choices can be made to meet the outcomes desired in Europe. :::
Proprietary operating systems dominate European desktops, with Windows holding approximately 70% market share and Apple's macOS accounting for 16.5%^[Desktop Operating System Market Share Europe https://gs.statcounter.com/os-market-share/desktop/europe]. Combined, these two proprietary systems run on roughly 87% of European computers.
Based on EU household statistics showing 202 million households^[EU Household composition statistics https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Household_composition_statistics], with 78.5% having computer access^[OECD: Access to computers from home https://www.oecd.org/en/data/indicators/access-to-computers-from-home.html], approximately 159 million computers operate in European homes. With Windows licensing starting at €10 per device, the annual investment from European citizens for Windows alone could exceed €1.1 billion.
This conservative estimate excludes:
- Professional and enterprise licence costs
- Necessary software upgrades and updates
- Hardware requirements and replacements
- Additional proprietary applications
- Ecosystem costs (hardware and software integration)
Conversely, it doesn't account for:
- Discounted or bundled 'free' licences pre-installed on new devices (although these costs are borne somewhere in the bill of materials)
- Software-enforced hardware obsolescence driving premature replacements
- Indirect costs from vendor lock-in and limited interoperability
The true economic impact of proprietary system dependency is likely significantly higher, representing a substantial annual transfer of European resources to non-European locked-in technology corporations whilst limiting digital sovereignty and user autonomy.
At the confirmation hearing of Henna Virkkunen on 12th November, the Open Internet Stack (OIS) was acknowledged as "open services and platforms which are an alternative to proprietary solutions".
The following text is summarised from the Horizon Europe Work Programme 2025 7. Digital, Industry and Space^[Horizon Europe Work Programme 2025 7. Digital, Industry and Space https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/wp-call/2025/wp-7-digital-industry-and-space_horizon-2025_en.pdf].
HORIZON-CL4-2025-03-DATA-11 Open Internet Stack: development of technological commons/open-source building blocks is a research and innovation action (RIA) under Horizon Europe^[Horizon Europe https://ec.europa.eu/info/horizon-europe_en] dedicated to developing technological commons based on Open Source. It focuses on establishing comprehensive digital infrastructure through the creation of modular, scalable, and secure components in the areas of connectivity, computing, and communication.
OIS is aligned with the 3C (Connectivity, Computing, and Cloud) Large-Scale Pilot, an EU initiative focused on developing critical digital infrastructure building blocks that support European digital sovereignty.
The initiative aims to reduce vendor lock-in and enhance interoperability by promoting open standards and Open Source methodologies. In doing so, it seeks to empower both public and private stakeholders to build and integrate digital services and applications seamlessly.
The project also seeks to address cybersecurity challenges and support the sustainability of the digital ecosystem, aligning with the EU's strategic objectives of digital transformation, digital sovereignty, and competitive market growth.
To achieve this, OIS will establish a library of digital building blocks including specifications, hardware design, software, middleware design, data assets, and tools. It then seeks a "compliance by design" mechanism to facilitate the availability of technical specifications, expertise, and intelligence for digital products and services in accordance with EU law.
A regulatory test bed will support the technical implementation of EU digital policies applicable to the spectrum of Open Internet Stack assets. This could include the deployment of sandboxes and the provision of an Interoperability Test Bed platform.
This initiative is designed to be fully complementary with existing top-down approaches in AI, HPC, Data, Cloud, and Quantum, addressing a population of developers not usually associated with EU funding.
::: widebox By facilitating collaboration across various sectors, the initiative is expected to drive innovation and strengthen Europe's position in the global digital economy.
It has the potential to be an evolutionary framework that encourages commercial activity and innovation, delivering benefit to society whilst protecting shared values.
Through its open and transparent approach, the project aspires to contribute to the creation of future-proof digital infrastructure that supports secure, resilient, and efficient digital services across Europe. :::
HORIZON-CL4-2025-03-DATA-08 Large-scale pilots for supply end-to-end infrastructures integrating device, network computing and communication capabilities for Telco Edge Cloud deployments, as a basis for 3C networks is a related research and innovation action under Horizon Europe that focuses on advancing data-driven digital transformation in Europe. The project aims to develop robust data ecosystems by integrating innovative data management practices and ensuring interoperability across various sectors.
It seeks to empower both public and private stakeholders to harness data as a strategic asset, fostering secure, transparent, and sustainable digital infrastructures. Emphasising digital sovereignty, the initiative promotes the adoption of open standards and cutting-edge data governance models to support the EU's broader objectives of innovation and competitive growth in the digital economy.
The Commission Work Programme for 2023 identified the development of Web 4.0 and virtual worlds (metaverse) as a strategic priority with an aspiration that the EU remains a leader in setting standards and values, and this is included in the 2025 work programme.
::: widebox Framed not only as a technological evolution but also a political and societal shift encompassing: real-time, ubiquitous connectivity; context-aware AI-driven services; decentralised data control and interoperability; integration of virtual and physical spaces; and trustworthy, inclusive infrastructure. :::
Web 4.0 represents the convergence of digital and physical environments, where devices, agents (human and machine), and services interact in an intelligent and context-aware manner. It is closely tied to the vision of a "Smart Web", where the internet becomes a dynamic interface for immersive environments (e.g., virtual and augmented reality), edge computing, and trusted data spaces.
This requires a new category of advanced transactional data objects, decentralised identity and authentication systems, interoperable data governance frameworks, secure peer-to-peer protocols, AI-driven orchestration capabilities, and user-centric privacy-preserving technologies that enable seamless interactions whilst maintaining sovereignty, trust, and transparency across hybrid physical-digital spaces.
::: examplebox To avoid repeating current interoperability problems between systems and providers, where basic services like instant messages and video calls can't be made between providers, it is critical that the Web 4.0 programme demands the development of interfacing standards from the outset with no tolerance for locked-in solutions and rigid adherence if they are to be used for public systems. :::
The flagship NGI programme, funded by the European Commission, commenced in 2019 and runs to 2027. It has granted 150M€ to close to 2000 cascade-funded projects aligned to European values through Financial Support to Third Parties (FSTP) (SME's, associations, small academic laboratories or individuals).
::: examplebox
83% of the projects were awarded to new entrants, who had not previously received funding from EU programmes.
"Commons such as Open Street Map or Mastodon have proven to be credible alternatives to Google Maps or X, and collaboration software such as Jitsi/BBB or Nextcloud/Collabora can replace Microsoft or Google suites"
"Cluster 4 – Digital – Destinations 3, 4 and 6 / French priorities for the WP 2026-2027". :::
NGI focuses on investing in small Open Source projects with micro grants to develop technology, capability and capacity in Europe with 84% of the projects being available "through public repositories" and has developed an estimated "80,000-strong ecosystem of contributors".
The Gartner study (April 2024) 'Benchmarking the Impact of the Next Generation Internet Initiative^[Benchmarking the impact of the next generation internet initiative https://op.europa.eu/en/publication-detail/-/publication/257ae66f-23c7-11ef-a195-01aa75ed71a1/language-en]' concludes that "Next Generation Internet (NGI) program, with its funding of over 100 million euros, has had a significant impact on shaping a sustainable, sovereign, and EU-aligned tech landscape".
::: widebox However the report highlights that "8% of the cases a legal structure was created (company or nonprofit)" and "32% of projects received renewed/additional funding, with public funds being the primary source." This highlights the business gap and EU opportunity. :::
::: marginbox NGI funding reputation has lead to foreign observers considering Europe as leader in the facilitation of an open-friendly policy environment and funding schemes
Source: Industry voices research :::
The report demonstrates that the funded activities contribute to EU policy objectives^[Benchmarking the Impact of the Next Generation Internet Initiative page 20: Figure 7 – Impact on EU Policies] as follows:
- 90% of NGI projects surveyed are connected to at least one European policy or legislation, with almost 30% of projects implementing two
- 47% focus on providing alternative choices to existing platforms
- 44% contribute to the concept of digital commons
- 39% contribute to enabling the General Data Protection Regulation (GDPR)
- 30% contribute to enabling the Cyber Resilience Act
- 15% support and enable EU digital identity initiatives
- 23% support and enable the Digital Services Act (DSA) and Digital Market Act (DMA)
- 9% of NGI projects specifically address measures to combat disinformation
The coordinators of the (NGI) programme assembled in November 2024 to reflect on the programme and lessons learned, and to consider future improvements.
The feedback was provided through the "Next Generation Internet 2026 - Suggestions for future pilot programmes" document (23/01/2025) as well as transcribed summaries and followup messages. A review of technology gaps is provided in appendix E.
::: textbox In summary, the coordinators conclude that the programme has delivered excellent Return on Investment (RoI) however observe significant further work to mitigate EU risks and build the industry. :::
The consultation identified potential development areas through an 'Open Internet Stack'. The community has emphasised the need for a clear strategy to ensure sustainability and adequate funding.
There is consensus on the importance of increased budgetary support to expand the vision of an Open Internet Stack beyond the current 3C proposal.
This includes maintaining a strong bottom-up dimension to foster innovation and competing solutions, a feature deemed effective in the current NGI program despite challenges in measuring its impact.
Stakeholders also stressed the need for greater investment to develop operational infrastructure that enhances ease of use and deployment, supports providers in adopting commons technologies, and stimulates sustainable business models.
They highlighted the difficulties of embracing Open Source solutions, often hampered by insufficient investment and lack of government backing compared to proprietary alternatives.
Additionally, participants called for a top-down strategic agenda to address long-term goals, noting that 5–7 years are needed to catch up with the state of the art in areas like open web search.
This requires a coherent approach, including collaboration with Member States, particularly in advancing Digital Commons and alternative open solutions.
To improve discoverability and adoption, cataloguing solutions are required. NGI operate a catalogue^[Catalogue: Discover NGI Innovations https://ngi.eu/discover-ngi-innovations/?] of their projects. A well-maintained semantic catalogue will aid stakeholders find and adopt the right solutions for their needs.
::: widebox Importantly, there is no mechanism for a citizen outside the technical sphere to qualify if a technology adheres to EU values. The need for a trusted qualification of solutions was highlighted. :::
Broadly the challenges fit three categories which are listed below, along with responses.
-
Insignificance - low level of funding is not credible : Response: Start small and fail fast - Evidence contained in the Gartner report demonstrates the impact that micro-investments can have in the Open Source digital sector. Return is measured in skills, expertise, digital security, new business as well as reduced cost and reduced dependence on foreign parties. This approach generates the greatest RoI.
-
Fragmented investment - scattered across unrelated projects / sectors : Response: Although the investments are made across the stack (hardware, firmware, operating systems, applications and web and more), they are all interconnected and each further multiplies the investments across the stack.
-
A missed opportunity - too late for impact or scale : Response: Big tech are investing billions however this is often in their internal systems and processing of user data; applications do not demonstrate notable progress. The digital industry is very new when compared to other areas of industry (transport, manufacturing, construction, education) and being knowledge-based, adheres to different dynamics to physical industry. Therefore the potential to develop many fold is yet to be realised.
::: widebox
Industry raises the following issues:
- Industry development is not funded, and vital innovation and operation of critical projects (such as maintenance and support, security, hosting) are out of scope
- NGI is not sufficiently joined up with Digital Public Infrastructure programmes such as UNDP
- Funding should be nearer the level that Horizon operates at (still as micro-grants) :::
The Horizon Europe Work Programme 2025 establishes a strategic framework to accelerate innovation across Europe with a focus on digital transformation.
The following areas have been defined:
- Area 1: Identity management
- Area 2: Software Supply Chain security
- Area 3: Open Hardware
- Area 4: Alternative solutions to centralised platforms
- Area 5: Web 4.0 demonstration for Virtual Worlds
The Work programme covers a variety of subjects related to the Open Internet Stack. Notably, it introduces policy concepts for Web 4.0 and Virtual Worlds, which aim to evolve the digital landscape into a more decentralised, secure, and immersive ecosystem.
Web 4.0 is envisioned as a next-generation internet infrastructure that integrates advanced artificial intelligence, blockchain technologies, and immersive interfaces to enable more responsive, user-centric digital services.
Simultaneously, the Virtual Worlds policy action seeks to create interoperable, ethical, and secure digital spaces that uphold European values of privacy, data sovereignty, and digital inclusion. These initiatives are designed to enhance the EU's digital sovereignty, ensure competitive innovation, and address the regulatory and societal challenges of emerging digital infrastructures Horizon Europe.
::: widebox The envisaged Web 4.0 shall be powered by open and decentralised technologies enabling interoperability between platforms and networks and freedom of choice for the users. It should be developed through open source / digital commons and tackle security, scalability and sustainability at the core of the technological developments. :::
The Action defines the expectation as:
- An early demonstration of the future Web 4.0 architectural framework (including protocols and standards) made up of key open source internet building blocks in priority areas: identity, software supply chain, open hardware, decentralised solutions & virtual worlds.
- The emergence of open and interoperable Web 4.0 and Virtual Worlds supported by EU based internet ecosystems centred on EU values and regulatory framework with high socio-economic impact, through the application of digital commons technologies and other Open Source solutions and open standards in several use cases.
Particular attention is required to ensure that appropriate standards are re-used to ensure that the systems are built from the ground-up with clarity as to how the objects, attributes and data will flow between implementations. This should be through full industry cooperation, coordinated by an expert panel representing current industry.
::: widebox Service providers including cloud, hosting, VPN, ISP and others in the Software-as-a-Service and 3C telecommunications industries supported by this work programme have the opportunity to be vehicles for promoting and implementing Open Source and therefore supporting the ecosystem. However this will require clear direction and incentive from the Commission to ensure that the ecosystem does ultimately receive the benefit. :::
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::: marginbox It’s all about value, stupid
Christian Paterson: Open Source: A Capitalistic Value Engine^[Open Source: A Capitalistic Value Engine https://www.lulu.com/shop/christian-paterson/open-source-a-capitalistic-value-engine/ebook/product-zm9dzy4.html?page=1&pageSize=4] :::
Open source software (OSS) is often seen as counter-intuitive by both governments and companies, primarily because it challenges traditional competitive paradigms. A significant mindset change is required to shift from the notion of exclusive proprietary technology to one that values open collaboration. In a market where competition is fierce, collaborating on shared technologies can drive innovation without compromising individual competitive strengths. The Open Source ecosystem is a service-based market instead of a product-based market.
Embracing OSS is an obvious investment to some, as it allows companies to benefit from shared resources and collective improvements while maintaining a competitive edge in other areas.
However owing to the complexity and recentness of the software industry, an asymmetry of information can exist between the supplier and the buyer (often in favour of the supplier) which risks lower quality products and erosion of trust^[Theory of lemons https://www.investopedia.com/terms/l/lemons-problem.asp].
::: textbox "The value of a non-pecuniary (free) product is inherently difficult to assess. A pervasive example is open source software (OSS), a global public good that plays a vital role in the economy and is foundational for most technology we use today"
The Value of Open Source Software :::
Ultimately, OSS supports the core investment in technology that companies build upon, rather than serving as the sole source of competitive advantage. By focusing on foundational tools and infrastructure, businesses can leverage OSS to foster innovation, reduce costs, and enhance overall performance, thereby creating a more resilient and dynamic digital ecosystem.
::: marginbox GDP is already off by bn's of dollars because of free software; the question becomes - how to account for it?
Frank Nagle :::
Traditional economic measures often fail to capture the full value of open source output and collaborative innovation, as much of its impact is embedded in everyday economic activity. For example, many contributions have a price of zero, with a non-zero cost to create and insignificant cost to copy or distribute, making it challenging to assign a clear monetary value using conventional metrics.
::: widebox In a report commissioned by Cigref and published in April 2025, Asterès estimates that annual purchases of cloud software services by European Union companies that benefit the American economy amount to €264 billion^[Technological Dependence on American Software & Cloud Services: An Estimation of the Economic Consequences in Europe https://www.cigref.fr/wp/wp-content/uploads/2025/04/Etude-Asteres-La-dependance-technologique-aux-services-de-cloud-et-logiciels-americains-avril-2025.pdf]. :::
Intangible assets, such as scientific ideas and the widespread adoption of open source software, do not easily register in standard indicators like GDP. This gap means that even as open source drives significant innovation and productivity, traditional measurements might misleadingly suggest a decline in economic performance.
::: widebox We estimate the supply-side value of widely-used OSS is $4.15 billion, but that the demand-side value is much larger at $8.8 trillion. We find that firms would need to spend 3.5 times more on software than they currently do if OSS did not exist. The top six programming languages in our sample comprise 84% of the demand-side value of OSS.^[The Value of Open Source Software, Manuel Hoffmann, Frank Nagle, Yanuo Zhou https://www.hbs.edu/ris/Publication%20Files/24-038_51f8444f-502c-4139-8bf2-56eb4b65c58a.pdf#page=31.22] :::
This disconnect calls for a fundamental rethinking of economic measurement. Developing new frameworks that account for intangible value and the pervasive, embedded benefits of open source will provide a more accurate reflection of the modern, innovation-driven economy.
European procurement practices significantly shape the digital ecosystem, with the majority of procurement funds currently favouring foreign proprietary vendors over Open Source providers in the EU. Procurement budgets are substantially larger than subsidy funds, meaning that the choices made in these processes have long-term impacts on technology adoption and digital infrastructure.
EU directives on public procurement cover tenders that are expected to be worth more than a given amount which may not fit well with open Source supply. The core principles of these directives are transparency, equal treatment, open competition, and sound procedural management.
::: marginbox "Procurement choices shape our digital ecosystem"
Melanie Rieback :::
European procurement policy is not specifically unfriendly to open Source, with Open Source guidance available for over a decade^[Guideline on public procurement of Open Source Software https://interoperable-europe.ec.europa.eu/sites/default/files/document/2011-12/OSS-procurement-guideline%20-final.pdf] and initiatives such as the EU Open Source Observatory (OSOR)^[EU Open Source Observatory https://interoperable-europe.ec.europa.eu/collection/open-source-observatory-osor] active since 2007.
::: widebox
Studies on the impact of a change in France’s technology procurement policy that required government agencies to favour open source software (OSS) over proprietary software - results show that within France, the regulation led to a 0.6% - 5.4% yearly increase in companies that use OSS, a 9% - 18% yearly increase in the number of IT-related startups, a 6.6% - 14% yearly increase in the number of individuals employed in IT related jobs, and a 5% - 16% yearly decrease in software related patents. In May 2025, France became the first government to endorse the UN Open Source Principles^[France Becomes First Government to Endorse UN Open Source Principles https://unite.un.org/fr/news/france-becomes-first-government-endorse-un-open-source-principles-joined-19-organizations] :::
::: marginbox "A main driver for Open Source market development is EU procurement"
Yet an Open-friendly policy has not proved sufficient to drive substantial behavioural change over this last decade. Tendering is often problematic for Open Source service providers because it is operationally designed for the needs of the proprietary industry. To address this, the Open Source Business Alliance (OSBA) published a position paper in February 2025 'Selection Criteria for the sustainable Procurement of Open Source Software'^[Selection Criteria for the sustainable Procurement of Open Source Software https://interoperable-europe.ec.europa.eu/collection/open-source-observatory-osor/news/osbas-guidelines-sustainable-open-source-software-procurement] to show how open approaches can work.
The report offers four key selection criteria:
Relationship with software manufacturer/community : Providers should demonstrate close ties with the software manufacturer or community through partnerships, contributions, or employing core developers. This ensures direct access to technical support, early awareness of security vulnerabilities, and influence on future development. The closer this relationship, the more the contracting authority benefits from tailored functionality, rapid issue resolution, and long-term software availability.
Upstream publication of modifications : Contractors should ensure that any modifications or customisations are published back to the original project, avoiding unsustainable forks. This prevents maintenance challenges where separate derivatives become costly to update with security fixes. Providers with close community ties increase the likelihood of patch acceptance, ensuring software quality and enabling reuse across the public sector.
High-quality level 3 support : Providers must demonstrate their ability to deliver expert-level support through either qualified staff with source code knowledge or contractual arrangements with the software manufacturer. This ensures contractually agreed response times can be met and complex technical issues resolved, maintaining operational continuity and minimising downtime for the contracting authority.
Securing the supply chain : Providers should actively support core components used in their solutions, contributing to their development and security compliance. This supports implementation of requirements like the Cyber Resilience Act and demonstrates a transparent approach. Such involvement is essential for ensuring the long-term availability of updates and maintenance for all components, thus guaranteeing supply chain security.
::: marginbox "Within procurement, Open Source is a powerful strategic instrument"
In development is an Open Source ambition ladder that explores the intent of the procurer, and provides transitional steps to assist with a migration from the current behaviours to an Open Source optimal configuration aligned with the Dutch Open Government Act and the Public Sector Information Reuse Act.
::: examplebox
Open Source Ambition Ladder in Custom Tendering or Contracting*
- Efficiency and Independence Do we want to tender for multiple suppliers who each take care of a part of the tender? If choosing collaboration with multiple contractors: how is the cooperation managed?
- Security and Reliability To what extent can we be sure that the developed work is secure and does what it’s supposed to do? No concessions are made in these requirements in this ambition ladder. Therefore, this category is not divided into different ambitions.
- Transparency and Trust To what extent do we want the products in this tender to be developed as openly and transparently as possible? Or to what extent do we want hired experts to be able to implement the ambition with their knowledge and experience?
- Collaboration and Innovation To what extent do we want suppliers, societal partners (government, knowledge institutions, and/or citizens), and/or other interested parties to be able to collaborate during or after the development of the products?
Source: Maurice Hendriks - Open Source Ambition Ladder in Custom Tendering or Contracting :::
::: marginbox Behaviours ultimately make the change on the ground :::
While changes in procurement policies are expected to drive future improvements, there is a crucial need for viable solutions to be available for procurement. Subsidies play an important role by seeding these solutions, which are then integrated into the market through procurement channels. However, the current system exhibits limited accountability in how these funds are allocated and utilised.
Moreover, these procurement decisions not only affect economic and technological landscapes but also have broader societal and political consequences. Issues such as targeted political impacts and other unintended societal outcomes highlight the need for more transparent and accountable procurement practices that align with strategic digital and policy goals.
::: marginbox Innovation comes from civil society
Professional Open source software services are not merely a digital commons or community but a vital business ecosystem that grows on customers and trade rather than subsidies. There is not a single commercial model but an array of different ways to trade in different markets or through different service offerings. These offerings are typically based on commensurate value, being focused on value delivered and problems solved, rather than revenue generated.
There is no doubt that the businesses active in this area are true innovators.
::: marginbox Many companies lack the expertise to recognise how open source can be used strategically or as a value driver.
Christian Paterson :::
:::widebox There are no official statistics or methods of quantifying how many people are employed to work on Open Source in the EU, how much revenue is generated, spend offset, or value created. :::
There is a pressing need to assist businesses in understanding their value propositions and refining their operational models—whether that involves freemium, premium, or cloud/SaaS frameworks. Key considerations include selecting the appropriate license, ensuring security and regulatory compliance, and clarifying whether they deliver consultancy, full life cycle services, a standalone application, or a product (hardware or software) or hosting. Furthermore, it is important to determine whether their focus is on products or comprehensive solutions.
::: marginbox "... our open source model proved to be key in disrupting the market owned by giants, like Microsoft, Oracle ..."
Fabien Pinckaers, Odoo founder :::
::: examplebox Odoo demonstrates successful commercial-community fusion, providing a fully capable Open Source ERP application with a commercial 'enterprise' solution from Odoo S.A. The Odoo Community Association^[Odoo Community Association https://odoo-community.org/] coordinates professional service providers subscribed to the open model. Users can experiment freely and be self-sufficient with capability, engage OCA-connected providers for services, or use Odoo S.A.'s hosted solution—enabling freedom to be consumer, service provider, or entrepreneur.
:::
Industry associations have a positive impact on these business and Europe has created a strong foundation through nurturing and supporting numerous open source communities and organisations, bolstered by initiatives such as NGI and similar programmes. Apell are an organisation of associations and have members in Finland, France, Germany, Sweden, Portugal, Netherlands, Italy, and Belgium^[Apell members https://apell.info/front-page/members/]. Open Forum Europe (OFE) have proven to be a valuable link between technical communities and policy communities throughout Europe and more recently a global presence. The OSB Alliance^[OSB Alliance https://osb-alliance.de/] is a German-based organisation that promotes by uniting industry players and fostering collaboration. These organisations along with businesses lead various European Open Source events.
::: marginbox It is not a zero-sum equation; the pie grows, as do opportunities
Frank Nagle :::
::: examplebox
Examples of EU Open Source community events:
- FOSDEM (Belgium) - free, community-driven conference
- Open Source Expo Paris (France) - annual open source expo
- Open Source Summit Europe - Linux Foundation event
- EuroPython - Python community conference
- Embedded Linux Conference Europe - embedded Linux systems
:::
Traditionally, measures of business success are often purely balance-sheet focused rather than value-delivered, savings and social benefit or impact.
Examples of businesses that rate highly according to traditional business metrics include the following European companies (also Redhat included for reference):
\setlength{\extrarowheight}{8pt} \renewcommand{\arraystretch}{0.8} \begin{tabularx}{\textwidth}{l l l l} \toprule \rowcolor{SoftCyan!20} \textbf{Company Name} & \textbf{Country} & \textbf{Revenue Estimate} & \textbf{Employee Count} \ \midrule
\rowcolor{WarmGray!10} Red Hat & USA & $6.5 billion (2024) & N/A \ \rowcolor{WarmGray!10} \multicolumn{4}{X}{Enterprise software (RHEL, OpenShift), subscription-based support, consulting, training, and certifications} \
\specialrule{0.3pt}{0pt}{0pt}
\rowcolor{SoftCyan!10} Odoo & Belgium & €196.47 million (2023, SaaS) & N/A \ \rowcolor{SoftCyan!10} \multicolumn{4}{X}{ERP, CRM, accounting, project management, eCommerce; cloud and on-premise deployment with professional services} \
\specialrule{0.3pt}{0pt}{0pt}
\rowcolor{WarmGray!10} Linagora & France & $19.1 million & \textasciitilde132 \ \rowcolor{WarmGray!10} \multicolumn{4}{X}{Twake, LinShare, LinTo; consulting, migration, training, Open Source Software Assurance (OSSA), support and hosting} \ \specialrule{0.3pt}{0pt}{0pt}
\rowcolor{SoftCyan!10} TUXEDO Computers & Germany & N/A & \textasciitilde50 \ \rowcolor{SoftCyan!10} \multicolumn{4}{X}{Custom laptops and desktops pre-installed with Linux (TUXEDO OS), Control Center, user support, extended warranties} \ \specialrule{0.3pt}{0pt}{0pt}
\rowcolor{WarmGray!10} Nextcloud & Germany & $15 million (2024) & >100 \ \rowcolor{WarmGray!10} \multicolumn{4}{X}{File sync & sharing, groupware tools, enterprise subscriptions, hosting, integration, custom development} \ \specialrule{0.3pt}{0pt}{0pt}
\rowcolor{SoftCyan!10} XWiki SAS & France & €6.5 million (2024) & 65 \ \rowcolor{SoftCyan!10} \multicolumn{4}{X}{XWiki, CryptPad; cloud hosting, consulting, support, custom development, EU-funded research participation} \ \specialrule{0.3pt}{0pt}{0pt}
\rowcolor{WarmGray!10} Collabora & UK & $19.7 million & \textasciitilde136 \ \rowcolor{WarmGray!10} \multicolumn{4}{X}{Collabora Online (LibreOffice-based suite), enterprise support, Linux graphics, kernel, AI/ML, and media consulting} \ \specialrule{0.3pt}{0pt}{0pt}
\rowcolor{SoftCyan!10} OpenProject & Germany & $217,500 (est.) & \textasciitilde14--40 \ \rowcolor{SoftCyan!10} \multicolumn{4}{X}{Open-source project management software; revenue from Enterprise Edition subscriptions, hosted services, and professional support; free Community Edition (GPLv3)} \
\bottomrule \end{tabularx}
::: examplebox Further examples of established EU Open Source businesses:
Hardware:
- Fairphone (Netherlands) – Mobile phone hardware, accessories, software
- Arduino (Italy) – microcontroller boards and development platforms
- Prusa Research (Czech Republic) – open source 3D printers
- SODAQ (Netherlands) – IoT devices and wearable hardware
Infrastructure:
- OpenSVC (France) – orchestration and high availability solutions
- DRBD by Linbit (Austria) – distributed replicated storage clustering
- OpenNebula (Spain) – platform for data centres and private clouds
- Worteks (Europe) – identity and Access management solutions
Social media:
- Friendica – decentralised social platform promoting interoperability
- HumHub – platform for creating private networks for organisations
- GNU social – social networking and decentralised communication
- Mastodon – federated social network platform :::
A more advanced level of nurturing is required to increase this ecosystem - a structured pipeline focused on delivering outcomes aligned with EU goals. However, challenges persist, as many open source companies are not yet commercially mature; founders often come from technical backgrounds, leaving basic business configurations underdeveloped.
::: marginbox The only thing stifling the progression of open digital is proprietary software. :::
SMEs face challenges when transacting with the public sector, as corporate and government entities tend to prioritise stability over innovation and often view SMEs as unsustainable due to limited team redundancy. This results in large projects frequently being awarded to established suppliers rather than smaller, more agile companies that excel at breaking down large systems into manageable, modular components.
To overcome these barriers, new collaboration methods between system integrator and SMEs are essential, particularly for strategically valuable EU projects—such as digital payment systems and phone wallets—that align with citizen benefits. If developers recognise the societal value of these projects, they are more likely to engage and contribute their skills effectively.
::: marginbox EU Commission must have trust and belief in their IT industry and entrepreneurs. Alexandre ZAPOLSKY :::
::: textbox Trade is enhanced when products are well packaged, and have easy routes to procure. :::
Digital SME^[Digital SME https://www.digitalsme.eu/] provides tailored digital resources, funding opportunities, and best practice guidance to accelerate European SME digital transformation and boost competitiveness. Based on the current content on the Digital SME website, there is no explicit reference to open source in its messaging or materials.
In addition to risks from foreign political choices, EU is at the whim of a developer or personal matter which changes the direction of key foundational technology, highlighting the absence of structures to support both the individual, and the user.
As businesses develop, rules of engagement are not always laid out clearly or don't keep up with the business particularly as revenues increase. This leads to issues such as WP Engine and WordPress finding the challenges of balancing commercial interests with open source values^[ZDNet Article https://www.zdnet.com/article/why-some-wordpress-plugins-and-hosting-companies-are-struggling-to-balance-commercial-interests-and-open-source-values/]. The high profile WP Engine and WordPress tension centres on a conflict between commercial practices and open source ideals. WP Engine, a leading managed hosting provider, has introduced proprietary features that some community members feel deviate from WordPress’s open source ethos.
::: marginbox To thrive, projects need confidence, trust, reduced public sector resistance, clear outcomes
Peter Coates :::
SMEs face challenges when transacting with the public sector, as corporate and government entities tend to prioritise stability over innovation and often view SMEs as unsustainable due to limited team redundancy. This results in large projects frequently being awarded to established suppliers rather than smaller, more agile companies that excel at breaking down large systems into manageable, modular components.
:::textbox Manufacturing company Bosch ranked among the top 100 corporate contributors on GitHub^[https://www.cbinsights.com/research/open-source-software-revolution-industries/] - what is this worth to Europe, what did it save? :::
To overcome these barriers, new collaboration methods between system integrator and SMEs are essential, particularly for strategically valuable EU projects—such as digital payment systems and phone wallets—that align with citizen benefits. If developers recognise the societal value of these projects, they are more likely to engage and contribute their skills effectively.
Startups in the OSS space are often pushed into Silicon Valley VC models that prioritise short-term, hyper-growth outcomes, which can lead to legal issues and forced founder sales to foreign companies. A more sustainable approach would involve realigning incentives through stewardship ownership, asset locks, and a focus on secure, middle-class salaries and pensions that better serve local and social needs.
::: marginbox "Open Source + incubation + steward ownership = lean startup"
Melanie Rieback :::
This VC model is not well suited to OSS investments, where the public ultimately bears the cost through IPOs that frequently fail^[Pre-IPO Financial Performance and Aftermarket Survival https://www.newyorkfed.org/medialibrary/media/research/current_issues/ci10-2.pdf/1000] to deliver lasting societal benefits^[IPO Failures: Causes, consequences and prevention https://www.diligent.com/resources/blog/what-happens-when-your-ipo-fails]. Rather than relying on speculative investment, it would be more effective for public administrations to manage funding directly, ensuring that benefits remain within Europe.
Additionally, the global VC market trend is showing a narrowing focus^[From AI’s banner year to an 8-year low in global dealmaking https://www.cbinsights.com/research/report/venture-trends-2024/] with fewer but larger deals. Without robust data on IPO success rates and long-term value retention, the VC strategy of increased investment in Open Source appears flawed unless Europe takes a proactive lead by fostering a commercial environment to enable growth and retain benefits domestically.
::: examplebox Red River West, Paris-based Venture Capital and Private Equity Principals with offices in Los Angeles^[https://www.linkedin.com/company/red-river-west/] and offer "Outstanding support to become global leader through U.S. expansion" announced a 50m€ fund^[Open-source, Devtools & Community-driven software https://commit.fund/] to support the software supply chain^[Open Source: The key to achieve Europe’s digital sovereignty in the AI era https://commitpulse.substack.com/p/open-source-the-key-to-achieve-europes]. Commit Fund is an investment and support platform dedicated to fostering sustainable open source projects by providing strategic funding, community resources, and partnerships that drive long-term innovation and digital transformation. :::
::: marginbox "Shift focus from valuing companies to valuing individual authors and developers"
:::
In her book The Entrepreneurial State^[Mariana Mazzucato - The Entrepreneurial State https://marianamazzucato.com/books/the-entrepreneurial-state/], Mariana Mazzucato discusses the phenomenon where governments undertake significant risks in funding innovation, yet the financial rewards are often reaped by private entities. She articulates this concern by stating^[The Entrepreneurial State: Debunking Private vs. Public Sector Myths https://longnow.org/seminars/02014/mar/24/entrepreneurial-state-debunking-private-vs-public-sector-myths/], "We socialize the risks and privatize the rewards." Mazzucato emphasizes that while the state plays a crucial role in de-risking the private sector, it frequently does not share adequately in the financial gains from successful innovations. She argues that this imbalance can lead to unsustainable economic models, where public investments absorb the losses, and private companies capitalise on the profits.
Indications of localised community and government activities over the last two decades to seek alternative approaches with notable successes and a drive to harmonising efforts are apparent.
In 2024, the state of Schleswig-Holstein announced plans to migrate 30,000 PCs in public administration to Linux and LibreOffice, seeking greater digital sovereignty and economic efficiency^[Adoption of free and Open Source software by public institutions https://en.wikipedia.org/wiki/Adoption_of_free_and_open-source_software_by_public_institutions].
In Spain, Andalusia, Extremadura and Barcelona have completed or announced plans to implement Linux operating systems for public administration use.
The French Directorate General of Public Finances (DGFiP)^[DGFIP Report Desktop Linux https://lab.abilian.com/Tech/Linux/DGFIP%20Report%20-%20Desktop%20Linux/] conducted an evaluation of desktop Linux deployments, providing insights into the practicalities and financial aspects of such transitions. While specific financial figures from the DGFiP report are not detailed in the available sources, the overarching implication is that adopting Open Source solutions can lead to substantial cost reductions in the long term, despite the initial investments in training and system migration.
::: examplebox The EU Open Source Solutions Catalogue launched in 2025 is a distributed database of solutions that meet a qualification of Open Source and suitability for public sector use. :::
A petition has been put to the European Parliament^[A petition for an "EU-Linux": a call for European digital sovereignty https://linuxfr.org/news/une-petition-pour-un-eu-linux-un-appel-a-la-souverainete-numerique-europeenne] advocating for the development and deployment of an Open Source, Linux-based operating system, termed "EU-Linux," across all public administrations within EU countries.
In March 2025, a proposal for "EU OS,"^[EU OS Use Cases https://eu-os.gitlab.io/use-cases] an immutable Linux distribution tailored for European public sector organisations, was introduced. This initiative aims to create a standardised, secure, and cost-effective operating system for governmental use. The proposal includes comprehensive planning for deployment, functionality requirements, and user management strategies.
These efforts reflect a strategic move towards greater control over digital infrastructure, aligning with broader goals of sovereignty, security, and economic prudence within the European Union.
Mobile operating systems have not yet become a focus of coordinated attention and still are controlled by a very small number of foreign organisations despite being a critical vector across EU society and business.
Boosted by further open-friendly EU policy, the European environment should be the ideal environment to nurture a home-grown digital open Source industry and to defend against those who look to exploit it^[SFC-funded lawsuit gets software repair and reinstall for users of AVM routers https://sfconservancy.org/news/2025/jan/09/avm-copyleft-lawsuit-resolved-with-install/]. Organisations such as Electronic Frontier Foundation (EFF)^[EFF https://www.eff.org/], a prolific USA advocate of digital freedoms established in 1990^[A Not Terribly Brief History of the Electronic Frontier Foundation https://www.eff.org/pages/not-terribly-brief-history-electronic-frontier-foundation], are increasing their activity in Europe through their 2025 strategy^[Saving the Internet in Europe: How EFF Works in Europe https://www.eff.org/deeplinks/2024/12/saving-internet-europe-how-eff-works-europe].
::: examplebox It took the action of just one European citizen to disrupt the global digital landscape, following an innocuous announcement on a mailing list in 1991^[Wikipedia: The creation of Linux https://en.wikipedia.org/wiki/History_of_Linux#The_creation_of_Linux].
Linux started as a personal project by Linus Torvalds, a Finnish computer science student who wanted a free operating system he could modify and improve^[https://www.howtogeek.com/linux-took-over-the-world-without-anyone-noticing/] :::
The German Coalition Working Group have released a digital policy prioritising the objectives: "Digital. Sovereign. Ambitious."^[Koalitionsverhandlungen CDU/CSU/SPD AG 3 - Digitales - FragDenStaat https://fragdenstaat.de/dokumente/258016-koalitionsverhandlungen-cdu-csu-spd-ag-3-digitales/].
::: textbox Our digital policy is geared toward sovereignty, innovation, and social progress.
- Digital policy is power politics.
- Digital policy is economic policy.
- Digital policy is social policy.
German Coalition Working Group :::
The policy aims to reduce technological dependencies, build resilient European value chains, expand infrastructure and computing capacity, and promote application-oriented research and digital skills—positioning digital policy as both economic and social policy to enhance sovereignty, innovation, and democratic resilience. "The IT budget is being strategically aligned, with a proposed target of achieving a 50% open source share by 2029."
The Dutch parliament are in the process of considering eight motions passed in March 2025 to create a Dutch sovereign cloud and onshore IT systems, migrate the Dutch domain '.nl. to Netherlands tech and to prepare an exit from US hosting providers as reported by The Register^[Time to ditch US tech for homegrown options, says Dutch parliament https://www.theregister.com/2025/03/19/dutch_parliament_us_tech/].
::: widebox Europe has the opportunity right now to guide this capability for the wealth of Europe and benefit of global progress by embracing and nurturing this talent, creating structures that lead to a thriving European open digital ecosystem. :::
For the first time, Open Source dominates software discussions and software dominates global industry. Yet for most government, policy and industry leaders, the focus is on acquiring, operating and working around proprietary and locked-in solutions which in many cases are significantly constructed with Open Source.
Therefore, although the open ways of working are powering society, industry and government, neither are well connected to the fundamentals of this distributed powerhouse, instead looking through the filter of a small quantity of 'big tech' brands.
A well thought out European Open Internet Stack with clear goals will be the springboard for EU leadership.
This report aspires to demonstrate that technology or skills are not barriers to European digital leadership, appropriate education on buy and supply side and leadership from European public bodies would be sufficient.
SIMPL, the Smart Middleware for cloud-to-edge federations, is a flagship European initiative designed to enable seamless interoperability across diverse cloud and edge infrastructures. As a foundational layer supporting the deployment of Common European Data Spaces and other strategic data initiatives, SIMPL provides essential tools and services for orchestration, data portability, and federation. By connecting fragmented digital ecosystems through open source software, open standards and trusted interfaces, it empowers European businesses, public administrations, and research communities to operate independently of non-EU technology providers. SIMPL plays a critical role in advancing EU digital sovereignty by fostering an open, interoperable, and secure data infrastructure aligned with European values and regulatory frameworks.
The Open Internet Stack aims to establish a comprehensive set of open-source digital building blocks across connectivity, computing, and communication domains. In this context, Connected Collaborative Computing (3C) networks serve as both early adopters and enablers of the stack. These networks — comprising distributed cloud and edge providers, community-driven platforms, and cooperative infrastructures — play a critical role in operationalising and validating the stack through real-world use. By embedding open standards and open-source technologies into their operations, 3C networks not only promote wider adoption of the Open Internet Stack but also strengthen Europe’s strategic autonomy in the digital sphere. As decentralised, interoperable service ecosystems, they embody the principles of digital sovereignty, offering a tangible alternative to proprietary platforms and contributing to a resilient European digital commons.
The 'EuroStack' initiative^[Eurostack https://euro-stack.eu/] is an active campaign^[Euro techies call for sovereign fund to escape Uncle Sam's digital death grip https://techcrunch.com/2025/03/16/european-tech-industry-coalition-calls-for-radical-action-on-digital-sovereignty-starting-with-buying-local/] from independent researchers, academics and companies including position paper, petition^[Open Letter: European Industry Calls for Strong Commitment to Sovereign Digital Infrastructure https://euro-stackletter.eu/wp-content/uploads/2025/03/EuroStack_Initiative_Letter_14-March-.pdf], website to push for a wide encompassing EuroStack that covers a whole sovereign digital value chain from raw materials to satellites constellation.
What is significantly new in the EuroStack narrative is the importance given to Open Source and Commons as a recognition that Europe as a lot to gain from commoditising the (mostly US-dominated proprietary) Stack. Also by pushing the term “Stack” the narrative puts a strong emphasis on practical IT solutions that are deployable and operational and links with communities of developers for which the term resonates well.
Although differing in scope and scale, this narrative of both Open Source/Digital Commons and Stack matches well with the EC ‘Open Internet Stack’ initiative that precisely intends to bring to operational level internet building blocks based on Open Source.
In December 2023, the European Union approved the Important Project of Common European Interest on Next Generation Cloud Infrastructures and Services (IPCEI-CIS), a multi-billion investment initiative for the creation of the first interoperable European cloud-edge computing continuum.
Through this initiative, eight European tech organisations (Arsys, BIT, Gdańsk University of Technology, Infobip, IONOS, Kontron, MONDRAGON Corporation, and Oktawave, coordinated by OpenNebula Systems) have launched virt8ra^[The IPCEI Cloud https://opennebula.io/innovation/virt8ra/] which they aspire to deliver as "Europe's first sovereign edge cloud". This is deigned to provide a secure and scalable infrastructure designed to bolster digital sovereignty, enhance local innovation, and reduce dependency on non-European cloud providers.
::: examplebox The current version of the virt8ra infrastructure already supports a number of unique features, including interoperability—managing physical resources, virtual machines, and Kubernetes clusters through a single control plane—and portability—allowing applications to be easily deployed, executed, and migrated across different locations and cloud providers^[Presswire: virt8ra https://www.einpresswire.com/article/777832788/the-eu-tech-industry-joins-forces-to-launch-the-first-sovereign-edge-cloud-for-europe] :::
"The virt8ra initiative is supported by the Spanish Ministry for Digital Transformation and Civil Service through OpenNebula Systems’ ONEnextgen project (UNICO IPCEI-2023-003), and co-funded by the European Union’s NextGenerationEU through the RRF".
GovStack is a global initiative established in 2020 by the International Telecommunication Union (ITU), Estonia, Germany, and the Digital Impact Alliance (DIAL). Its mission is to assist governments in developing cost-effective, efficient, and scalable digital public services. By employing interoperable, reusable digital components known as "building blocks", GovStack enables the creation of human-centred services that empower individuals and enhance well-being^[GovStack Global Initiative - Helping government digitalise public services https://www.itu.int/en/ITU-D/ICT-Applications/Pages/digital-government.aspx].
::: examplebox In 2023, GovStack collaborated with various countries to advance their digital transformation efforts.
- In Egypt, a 10-day deep dive engaged over 150 participants to define national requirements and develop an implementation roadmap for GovStack adoption.
- Rwanda's Irembo platform, based on GovStack principles, is considering further expansion using additional building blocks.
- Ukraine initiated an EU-wide tender to develop a GovStack-compliant prototype of their Diia.Engine
- Papua New Guinea is developing its digital identity framework using GovStack's Identity building block as a reference. :::
Additionally, under the Initiative for Digital Government and Cybersecurity in the Horn of Africa, GovStack supported Djibouti in implementing an e-cabinet and digitising construction permits, hosted a roadshow in Kenya, and assisted Somalia in digitising high school certificates and adopting a unified government services portal^[2023 Year in Review https://www.govstack.global/news/2023-year-in-review/].
e-Estonia^[e-Estonia Wikipedia overview https://en.wikipedia.org/wiki/E-Estonia] refers to Estonia's pioneering initiative to create a digital society, integrating technology into various aspects of governance, economy, and daily life. This transformation has led to the development of numerous digital solutions, including electronic identification (e-ID), e-residency, and online voting systems, positioning Estonia as a leader in digital innovation.
At the core of e-Estonia lies X-Road^[X-Road Wikipedia overview https://en.wikipedia.org/wiki/X-Road], a secure and standardised data exchange platform that enables interoperability between various information systems. Launched in 2001, X-Road facilitates seamless communication between public and private sector organisations, allowing for efficient and secure data transfers. Its distributed architecture ensures that data remains decentralised, enhancing security and resilience. The platform's success has extended beyond Estonia, with countries like Finland adopting X-Road for their data exchange needs, leading to cross-border interoperability.
::: textbox By 2018, it was estimated that the system helped Estonia save approximately 1,407 years of working time annually. :::
X-Road has significantly contributed to Estonia's digital advancement^[GovInsider article on X-Road https://govinsider.asia/intl-en/article/estonias-x-road-data-exchange-in-the-worlds-most-digital-society]. The platform connects over 450 organisations, powering more than 3,000 digital services for residents and businesses. Its Open Source nature has inspired over 20 countries, including Namibia and the Faroe Islands, to implement similar systems tailored to their local contexts.
The success of X-Road has led to international collaborations, such as the establishment of the Nordic Institute for Interoperability Solutions (NIIS) by Estonia and Finland in 2017^[NIIS Wikipedia page https://en.wikipedia.org/wiki/Nordic_Institute_for_Interoperability_Solutions]. NIIS focuses on advancing cross-border e-governance solutions, with X-Road serving as a foundational technology. This collaboration exemplifies the potential of shared digital infrastructure in enhancing governmental interoperability and efficiency.
::: marginbox
New service offerings, smart cities, features like smart parking and IoT start to work when there is automated digital trust
Gaia-X is a European initiative designed to create a federated, secure data infrastructure that bolsters digital sovereignty across the continent. Its objective is to establish common standards and open interfaces that ensure interoperability and trustworthy data exchange between public and private entities.
::: textbox Gaia-X represents a collaborative effort to reduce dependency on non-European cloud providers and enhance technological competitiveness :::
While Gaia-X is not exclusively an open source stack, it emphasises openness by promoting the use of open standards and modular architectures, which can integrate with open source technologies. The project aims to foster an ecosystem that supports secure, transparent, and efficient cloud services, aligning with EU values such as data protection and privacy.
The European Open Science Cloud (EOSC)^[EOSC About page https://eosc.eu/eosc-about/] is an initiative by the European Commission aimed at developing an infrastructure that provides researchers with services promoting open science practices. Launched in 2015, EOSC seeks to create a 'Web of FAIR Data and Services' for science in Europe, facilitating access to and reuse of research data across borders and scientific disciplines.
The implementation of EOSC is based on a long-term process of alignment and coordination pursued by the European Commission since 2015. The initiative officially launched in November 2018, starting to provide access to services via the EOSC Portal.
::: textbox Although primarily aimed at the research community, ESOC integrates a suite of open source tools and services that can inform broader public sector digitisation efforts. :::
EOSC's vision^[EOSC slide deck May 2023 https://eosc.eu/wp-content/uploads/2023/08/EOSC-A_GA6_EOSC-slide-deck-May-2023.pdf] is to set up a trusted, virtual federation of existing infrastructures in Europe to store, share, and reuse FAIR (Findable, Accessible, Interoperable, and Reusable) research outputs across borders and scientific disciplines.
The full deployment of EOSC is expected to lead to higher research productivity, new insights and innovations, as well as improved reproducibility and trust in science^[European Commission Open Science Policy https://research-and-innovation.ec.europa.eu/strategy/strategy-research-and-innovation/our-digital-future/open-science/european-open-science-cloud-eosc_en].
By championing research data management and application, EOSC aims to give the EU a global lead in research data management and ensure that European scientists enjoy the full benefits of data-driven science.
Below are representative summaries of the Open Source position in key nations or who have made significant progress. There are few nations that do not have policy or activity on the subject of Open Source.
In 2011, the UK Cabinet Office^[Cabinet Office https://www.gov.uk/government/organisations/cabinet-office], led by Francis Maude, established the Government Digital Service (GDS) as part of a sweeping reform agenda to transform public services.
::: examplebox GDS was built on the premise that digital services should be simple, user-centred, and efficient. Embracing open standards and open source principles, the initiative sought to foster innovation and transparency across government IT systems. :::
This approach enabled the development of the gov.uk website^[Gov.uk https://www.gov.uk/government/organisations/government-digital-service], launched in 2012, which consolidated numerous government services into one accessible platform. The success of gov.uk has since set a global benchmark for digital public services, demonstrating the benefits of open design and collaborative development.
Following the initial success of GDS and the launch of gov.uk, progress continued with numerous digital transformation initiatives across the UK government. However, over time some observers noted a gradual slowing in momentum.
Critics argued that while early successes set strong benchmarks for usability and openness, scaling agile methodologies and open source practices across larger, more complex departments proved challenging. Despite these hurdles, digital transformation remained a core governmental priority.
Subsequent reforms and investments have sought to reinvigorate progress by enhancing cross-departmental collaboration, integrating emerging technologies, and refining procurement processes. Although some areas have experienced slower progress, GDS continues to evolve its strategies to uphold open standards and user-centred design, sustaining the UK’s leadership in digital government however this success has not been replicated across the wider UK public sector in the subsequent 15 years.
OpenUK^[OpenUK https://openuk.org] is a UK-based advocacy organisation that champions an open internet, open standards, and open data. It plays a key role in promoting transparency, innovation, and interoperability across public and private sectors in the digital realm. OpenUK works closely with government, industry, academia, and civil society to influence digital policy and encourage best practices in technology.
Its initiatives focus on reducing vendor lock-in, fostering the adoption of open source technologies, and enhancing digital sovereignty in the UK. By providing a platform for collaboration and discussion, OpenUK supports the development of a fair and secure digital infrastructure, driving forward the country’s digital transformation agenda.
Apperta originated from the NHS England open source programme, evolving as a critical initiative in the UK healthcare digital transformation. The project emerged in an environment where open source was embraced as a de facto standard within the public sector, free from resistance and bias against its adoption.
::: marginbox There is no push-back when offering Open Source to the NHS - it is now considered the de-facto approach
Peter Coates :::
According to its director, Apperta benefits from a mature technical custodian model that not only supports implementation and maintenance but also ensures supply chain resilience through active marketplaces and a full suite of professional services available to the marketplace.
::: widebox Key to its success is the integration of initiatives like OpenEyes, which has achieved critical mass and momentum, reflecting a future state where open clinical models thrive. :::
The custodian model is characterised by intimate knowledge of the individuals involved, ensuring that technical expertise and community values remain central. This approach has resulted in a short supply chain of knowledge products, enabling seamless transitions in procurement (e.g., via G-Cloud) without operational impact when suppliers change.
Overall, Apperta exemplifies a gold standard in critical software for the UK healthcare industry by demonstrating that a repeatable, data-model driven innovation can thrive at the intersection of technology, applications, informatics, and clinical practice.
The UN Open Source Principles advocate for the use of open source software and open standards to foster transparency, collaboration, and sustainable development across UN operations and its global partnerships. These principles stress the importance of freely accessible, modifiable, and redistributable source code, which facilitates community-driven development and shared innovation.
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The UN Open Source Principles are designed to enhance efficiency and inclusivity, aligning with broader objectives of transparency and sustainable progress in both public and private sectors
::: By endorsing interoperability and reducing dependency on proprietary solutions, the UN aims to build cost-effective and resilient digital infrastructures that can evolve over time. In addition, the framework promotes capacity building, accountability, and continuous improvement.
The Open Source Initiative (OSI) has become the first organisation to endorse the United Nations Open Source Principles^[OSI endorses UN Open Source principles https://unite.un.org/news/osi-first-endorse-united-nations-open-source-principles].
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The Principles are comprised of eight guidelines and provide a framework to guide the use, development and sharing of Open Source software across the organisation:
- Open by default: Making Open Source the standard approach for projects
- Contribute back: Encouraging active participation in the Open Source ecosystem
- Secure by design: Making security a priority in all software projects
- Foster inclusive participation and community building: Enabling and facilitating diverse and inclusive contributions
- Design for reusability: Designing projects to be interoperable across various platforms and ecosystems
- Provide documentation: Providing thorough documentation for end-users, integrator and developers
- RISE (recognise, incentivise, support and empower): Empowering individuals and communities to actively participate
- Sustain and scale: Supporting the development of solutions that meet the evolving needs of the UN system and beyond.
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The United Nations Office for Digital and Emerging Technologies have launched an annual conference, held at the United Nations Headquarters in New York with for "open source leaders, developers, policymakers, and partners" to "come together to build, innovate, and drive open source solutions for the Sustainable Development Goals". The conference includes UN Tech Over Hackathon (June 16-17), OSPOs for Good (June 18), Digital Public Infrastructure – DPI Day (June 19), Partner-organized side events (June 20)^[UN Open Source Week 2025 https://www.un.org/digital-emerging-technologies/content/open-source-week-2025].
India Stack is a transformative digital infrastructure initiative that underpins India’s entire digital economy by providing three core services:
::: marginbox An analogue government cannot regulate a digital society
- verified identity (KYC)
- transaction auditing
- data exchange
Built on minimal base components, it functions like a network of roads and rails—providing essential, single-purpose building blocks such as the UPI specification—rather than attempting to construct entire applications from scratch. This infrastructure-level focus has enabled scalable, trusted, and low-cost services, from enabling street traders to transact to supporting complex financial ecosystems.
::: marginbox "Take care of your community, they take care of you"
From the Sevā tradition :::
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Indiastack: Critical success factors:
- an analytical user focused approach
- alignment with cultural values
- government direction and support
- demand industry compliance
- speed of project delivery
- appropriate budget assigned
- inspired by decentralised nature
- core principle - can it be abstracted and reused?
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::: marginbox A System Integrator can lack understanding of Open Source models and operate under traditional "throw-it-over-the-wall" methodologies or revert to conventional approaches, undermining the Open Source ethos. Rahul Kulkarni :::
However, while the foundational infrastructure is robust, application development within this ecosystem remains challenging. The project’s evolution highlights a key tension: long-tail open source software (OSS) models versus the traditional role of system integrators (SIs). Large SIs often set up projects only to later take over, fork, and close them off from community contributions, undermining the Open Source ethos. Examples such as MOSIP illustrate the difficulty in attracting long-tail contributors for complex systems, as community ownership can be hard to sustain.
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The economics are positive, with cost of issuing identities at between $1 and
India Stack started as modular components that evolved into a broader framework of digital public goods. Its design prioritises modularity, scalability, and openness, ensuring a short supply chain of knowledge products and fostering reuse. With significant government backing and a mobile-first approach, India Stack not only drives digital commerce and identity verification using the Beckn protocol^[Beckn Protocol https://becknprotocol.io/] but also paves the way for decentralised digital ecosystems, positioning India as a leader in digital infrastructure^[FIDE https://fide.org/].
::: marginbox "Software follows a long-tail model, which is incompatible with traditional project structures" Rahul Kulkarni :::
::: widebox India Stack's success is evident in its role as the foundational infrastructure of India's digital economy. It has enabled secure, low-cost identity verification, transaction auditing, and data exchange at scale.
This was in part enabled by a policy development called the Open Network for Digital Commerce (ONDC). :::
The development approach has been to start with a problem statement, for example "can we enable a street trader to transact with the public, using technology that they already have?" This lead to a mobile-first approach, subsidised by the government who realise not only the opportunity to increase trade but to simplify tax accountability and collection. For this reason, the government subsidises to INR 400m (approximately 4m€).
::: marginbox In the next 10 years, India will have the most advanced digital infrastructure in the world.
The streamlined, modular approach—exemplified by the UPI system—has transformed everyday commerce, making digital payments ubiquitous and accessible, even for street traders. Its mobile-first strategy, robust government support, and emphasis on open source principles have spurred widespread adoption, fostered innovation, and enhanced financial inclusion. By simplifying complex processes and reducing operational friction, India Stack has set a global benchmark for digital public goods and resilient, scalable digital infrastructure.
:::textbox Data from December 2024 indicate that Linux holds a 13.15% desktop market share in India. :::
The volume of Linux users highlights India's role as a leader in Linux adoption. Several factors contribute to this trend, including the increasing affordability of Linux-based systems, a strong Open Source community, and growing awareness of digital sovereignty.
::: widebox Indian users are recognising the benefits of Open Source alternatives, such as enhanced customisability, security, and cost-effectiveness, compared to proprietary operating systems. Additionally, government and industry initiatives promoting open technologies may further boost the adoption of Linux, positioning it as a viable and competitive choice for desktop environments in India. :::
USA has been instrumental in the development of the internet and a significant proportion of digital applications. This has been largely driven through industry activity although various states have developed local policy.
One prominent example is California’s open source software policy^[California Department of Technology – Open Source Software Guidelines <https://cdt.ca.gov/Open Source/>], which directs state agencies to consider open source alternatives and, where feasible, to release custom-developed software under open source licenses.
::: textbox The SHARE IT Act (Source Code Harmonisation and Reuse in Information Technology Act)^[SHARE IT Act https://www.congress.gov/bill/118th-congress/house-bill/9566] brought in to effect December 23, 2024 requires US federal agencies to share custom-developed source code by mandating that such code be owned by the agency, stored in a designated repository, and made accessible to federal employees. :::
In 2021, the Brookings Institute reviewed EU policy, considering it to be the leading works^[What the US can learn from Europe’s open source technology policy study https://www.brookings.edu/articles/digital-infrastructure-is-more-than-just-broadband-what-the-u-s-can-learn-from-europes-open-source-technology-policy-study/] and this influenced the SHARE IT Act.
The law is intended to reduce duplicate spending and inefficiencies through reuse of software developed under government contracts (exempting classified, national security, or sensitive personal data from disclosure). Additionally, agency Chief Information Officers must implement the sharing policies and submit annual compliance reports without requiring additional funding, leveraging existing infrastructure such as https://code.gov.
In 2024, the Biden administration's explicit recognition of open source as a strategic asset is considered a significant win. However with a primary focus on cost saving and risk mitigation, this falls short of a mandate for Open Source licences and as such, the legislation misses the opportunity to drive an open Source first digital industry across USA.
::: textbox Industry has been the driver for digital, and where Open Source benefits industry, investment and support has been provided. :::
Many high profile foundations have been established in USA such as The Linux Foundation^[How Does the Linux Foundation Work and What Does it Do https://www.linuxfoundation.org/blog/how-does-the-linux-foundation-work-and-what-does-it-do] which is funded by large cooperates^[Introduction to the Linux Foundation Donors https://www.learnitguide.net/2023/04/who-are-top-donors-of-linux-foundation.html]. The AI Alliance^[How The AI Alliance Collaborated Its Way To Rapid First-Year Growth https://www.forbes.com/sites/moorinsights/2025/03/21/how-the-ai-alliance-collaborated-its-way-to-rapid-first-year-growth/] has formed in California, 'founded in December 2023 by IBM and Meta, along with 50 other initial members' with a mission to develop the AI ecosystem.
USA policy changes have wound-back some of the commitment to digital openness and this in part has reduced corporate support of Open Source projects. One example is Google's decision to reduce it's openness with respect to the Android operating system^[Android development moves internally at Google ahead of public releases https://www.neowin.net/news/android-development-moves-internally-at-google-ahead-of-public-releases/].
::: examplebox Migration of Open Source foundations to Europe started in 2020 with the Eclipse Foundation announcing a move to Europe^[https://eclipse-foundation.blog/2020/05/12/moving-to-europe/] which is reported to have 'shown remarkable growth'^[2024 Annual Community Report https://www.eclipse.org/org/foundation/reports/annual_report.php]since, Open Source Initiative (OSI) have commenced the creation of a European chapter, to be 'Open Source Initiative Europe'^[Source: Call with OSI 17th September 2025], XMPP Software Foundation (XSF) are considering following^[XSF Euopean considerations https://wiki.xmpp.org/web/Organization_Proposal#Informational_talk_with_Eclipse_Foundation_employees] and other US-based foundations are, at the time of writing, exploring the options to move to Europe^[Source: Foundations network].
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China's open source policy is driven by a strategic emphasis on technological self-reliance and innovation, aiming to reduce dependency on foreign software.
::: examplebox According to MIIT, China's multiannual political planning framework integrates Open Source alongside technological self-reliance and innovation, digital transformation and cybersecurity, sustainable development and environmental protection, industrial upgrading, and the modernisation of its service economy, reflecting its high-level importance in national industrial policy and key drivers of national growth.
While national policies have set the framework, implementation varies by region and industry, reflecting diverse levels of infrastructure and expertise. Overall, China is progressively advancing its open source agenda as part of broader efforts to enhance digital sovereignty and competitiveness. :::
Open source is seen by Ministry of Industry and Information Technology (MIIT)^[MIIT https://www.miit.gov.cn] as a means to reduce reliance on foreign technology and to foster domestic innovation. MIIT supports initiatives that promote standardisation and interoperability, which align with open source principles, even if it does not exclusively mandate open source solutions. For example, policies have encouraged the development of domestic open source platforms and communities, such as Gitee^[Gitee https://gitee.com], which serve as alternatives to international proprietary systems. Overall, MIIT’s policies contribute to an environment that values technological self-reliance, in which open source plays an important supporting role.
The government has issued guidelines encouraging the adoption, development, and integration of open source solutions across public and private sectors. Initiatives include the promotion of domestic platforms like Gitee, the support of local open source communities, and the integration of open source practices into government digital projects.
The Mexican government is increasingly embracing open source solutions as a cost-effective, flexible alternative to proprietary software in public administration. Mexico’s vibrant tech community actively promotes open collaboration and innovation through local open source initiatives and educational programs. Economic imperatives drive the adoption of open source in Mexico, with businesses and educational institutions leveraging its affordability and adaptability to enhance competitiveness.
::: marginbox There was never a technological or regulatory problem that couldn't be fixed.
Federico Gonzalez Waite CEO - National Research and Innovation for ICT, Mexico :::
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GENERAL LAW ON HUMANITIES, SCIENCES, TECHNOLOGIES AND INNOVATION (08/05/2023)
“Article 11.- …The consolidation of digital government and citizenship through the development and implementation of information technologies, in particular Open Source software, aimed at the continuous improvement of public services, as well as compliance with the principles of austerity, efficiency, effectiveness, economy, transparency, and honesty for the administration of public resources…”
“Article 81.- Public Centres are fundamental institutions for achieving and consolidating the country's scientific and technological independence. They will provide the Mexican government with scientific knowledge and its technological applications for the comprehensive attention of national problems.…”
Source: SCaLE Pasadena PPT
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Mexico's education programme actively integrates open source principles into its curriculum, with community-driven training that empowers students and professionals to contribute to a collaborative tech ecosystem.
Digital Impact Alliance (DIAL)^[Digital Impact Alliance https://digitalimpactalliance.org/] dedicate themselves to accelerating public digital transformation worldwide. It partners with governments, non-governmental organisations, and private sector to design, implement, and scale digital solutions to enhance service delivery, promote transparency, and foster inclusive growth. By building digital infrastructure, strengthening capacity, and facilitating innovation, DIAL supports sustainable development goals and addresses complex societal challenges. Its initiatives leverage technology for social impact.