Open source (still) means innovations

There is no need to explain the importance of the global network innovation we enjoy today. Many lines have been written on the possibilities and the marvels the network delivers daily. After an initial couple of decades of admiration, the same thing happened with many other wonders of the world we witnessed throughout civilization. We took it for granted. We do not discuss its structure, backbone, and the incentive structure behind it. Unless it interferes with our daily life and freedom.

This is true for any network user, being a state actor, cloud computing company, or everyday end user. When we look at the backbone of the internet, almost everything is open source. What does this mean? Basic protocols and ways we connect over the internet are documented and open for everyone to observe, copy, and build upon. They are agreed upon as a set of transparent public instructions that are free of proprietary obligations. 

Industry and innovation 

To distinguish innovation from the industry (which might be important to go forward), we can introduce a simple correlation: The industry is an ecosystem that emerged on the need to make the invention more available. The vision of utility is in the industry, and the value of innovation is proven with every iteration of utility. Following this correlation, we can indeed say that the more transparent innovation, the greater its value (or we tend to give it such a position).

When we look at the internet industry, we observe that companies and strategies that followed openness have benefited massively from the invention. This system of benefits from the open source approach can work in depth for both the invention and the consequential industry. To name a couple of the greatest examples: Alphabet (Google, YouTube, or Maps), Linux (used to run almost the entire internet backbone infrastructure), Android (revolutionising the app market, levelling the entry field, and reducing the digital divide). All of them are open source, built on the open-source innovation of the internet.

 Architecture, Building, Diagram, CAD Diagram

A closer look at resiliency

Let’s look at one example that may illustrate this precisely: bitcoin. It started as an open-source project and is still one of the most maintained public databases on the internet. Bitcoin brings back the idea of private money after 100 years of the nation’s monopoly on money. Although it is pointed out as a danger to the international financial system, there is no possible coordinated action by such entities to take down this system and/or ban it permanently. Why? The simple answer is in the trade-off. 

Stopping bitcoin (or any digital information online) is not impossible per se but would require massive resources. This would require full control of all communication channels towards the internet, including banning satellites from orbiting above your geolocation and persistent efforts to ensure no one is breaching the ban. But in 2024, such a ban would create a tear in the fabric of society. Societal consequences would widely overcome the possible benefits.

Instead, as long as it is neutral, bitcoin does not present a threat but rather an opportunity for all. All other competitors built on bitcoin principles are not the same for that particular reason: they are not open source and transparent. No Central Bank Digital Currency (CBDC), privately issued stablecoin, or any of the thousand cryptocurrency impersonators have proven to hold any of the bitcoin’s value. Following the earlier distinction, innovation is open source, but the industry around it is not so much.

Open source is the right way, not the easy one

Does the above mean that when an industry is not based on open source, it cannot make great discoveries and innovate further? No, not at all. Intellectual property is a large part of the portfolio of the biggest tech companies. For example, Apple’s IP revenues culminated in around USD 22.6 billion in research and development expenditures (in 2022) The proprietary industry moves the needle in the economy and creates wealth, while open source creates opportunities. We need both for a healthy future. All of our opportunities may not result in imminent wealth, but rather in inspiration to move forward rather than oppose the change. 

In simple terms, open source empowers the bottom-up approach to building for the future. It helps expand the base of possible contributors, and maybe most importantly, reduces the possibility of ending up in ‘knowledge slavery’. It can create a healthy, neutral, starting point. The one most will perceive as a chance rather than a threat. 

If all of you had one particular innovation in mind while reading all this, you are right!

Artificial intelligence (AI) is a new frontier. AI is actually a bit more than just a technology, it is an agent. Anyhow, it is an invention, so chances are high it will follow the path we described above, enabling an entirely new industry of utility providers.

No need to be afraid

We hear all the (reasonable) concerns about AI development. Uncertainties on whether AI should be developed beyond human reach and concerns regarding AI in executive positions, all are based on fear of systems with no overview.  

In the past, the carriers of the open source (openness and transparency) approach were mostly in academia. Universities and other research institutions contributed the most to the open source approach. It is a bit different in the AI field. For that, companies are leading the way.  

The power to preserve common knowledge is still in the hands of states, and under the set of business and political circumstances, the private sector is also the biggest proponent of the open source approach. With the emergence of large language models and generative AI, the biggest open source initiatives came from Meta (LLaMa) and Alphabet (T5). They align with the incentive to statute open source as a standard for the future. We might be in an equilibrium moment in which both sides agree on the architecture for the future. Nations, international organisations, and the private sector should seize this opportunity. This new race toward more efficient technology of the future should evoke optimism, but there cannot be one without the bottom- up and open source approach to innovation. 

The open source approach is still the way forward for innovation. and can build neutral ground, or at least will not be perceived as a threat.

Read more of our ideas about the way forward in AI governance on the humAInism page

Microsoft faces UK legal action over alleged cloud licence abuses

Microsoft is facing a £1 billion legal claim in the UK, alleging it imposed unfair licensing fees on businesses using rival cloud services like Amazon, Google, and Alibaba. The case, brought by competition lawyer Maria Luisa Stasi, accuses Microsoft of deterring customers from using competing cloud platforms by inflating fees for its Windows Server software.

The licensing changes, introduced in 2020, reportedly incentivised customers to choose Microsoft’s Azure platform, raising concerns about restricted competition. Britain’s competition watchdog is also scrutinising Microsoft’s cloud practices as part of a broader industry investigation.

The United States Federal Trade Commission has similarly launched an antitrust probe into Microsoft’s cloud computing and software licensing, investigating potential market abuse. Microsoft’s actions have sparked global attention over its influence in the cloud sector, which is dominated by Microsoft, Amazon, and Google.

MTN South Africa, China Telecom and Huawei partner on 5G and AI in Africa

MTN South Africa, China Telecom, and Huawei collaborate strategically to advance 5G, cloud, AI, and business solutions. The partnership combines China Telecom’s global expertise in network solutions, MTN’s extensive regional reach, and Huawei’s advanced technology to drive digital infrastructure development across Africa.

The Executive Vice President of China Telecom Global emphasised that the alliance will unlock new business opportunities and enhance technological offerings in the region. The collaboration is also set to promote the growth of the Internet of Things (IoT), enabling non-computer devices like fridges to connect to the internet.

Why does it matter?

MTN South Africa anticipates that improvements in network services will provide new possibilities for business customers, especially in sectors like smart mining and industrial applications.

France eyes strategic tech control in Atos deal

French IT giant Atos has entered discussions with the government for a potential €500 million ($524 million) acquisition of its advanced computing division. Known for its crucial role in securing communications for the French military and manufacturing supercomputer servers, Atos is restructuring to address its mounting debt. The government has prioritised retaining control over the company’s strategic technology assets to safeguard national interests.

The proposed deal includes an initial payment of €150 million upon signing, expected before the exclusivity period ends on May 31. The offer could rise to €625 million with performance-based earn-outs. French Finance Minister Antoine Armand emphasised the state’s duty to ensure the survival and development of industries critical to national sovereignty. Atos’ advanced computing and cybersecurity unit, employing 4,000 people and generating €900 million annually, is seen as a vital asset.

As part of its restructuring, Atos announced plans to sell its cybersecurity unit’s Critical Systems and Cyber Products. With this deal factored in, the company forecasts its financial leverage for 2027 to be between 1.8 and 2.1 times core earnings. Meanwhile, France‘s parliament is considering an amendment that could pave the way for Atos’ nationalisation, underscoring the government’s commitment to protecting key technologies.

KPMG invests $100 million in AI partnership with Google Cloud

KPMG has committed $100 million over the next four years to enhance its enterprise AI services through collaboration with Google Cloud. The investment will focus on developing AI tools, training employees, and leveraging Google’s technology to scale AI solutions for clients.

Steve Chase, KPMG’s vice chair for AI and innovation, highlighted that enterprise demand for AI has surged, with many businesses planning substantial investments in the technology. KPMG’s partnership with Google aligns with a broader strategy to expand AI services across multiple cloud platforms, including a prior $2 billion collaboration with Microsoft.

Google Cloud‘s president of revenue, Matt Renner, noted the rapid growth in cloud services, emphasising the synergy between cloud providers and consulting firms as a key driver for future industry expansion.

FTC looks into Microsoft’s cloud business

According to sources, the Federal Trade Commission is preparing to investigate Microsoft’s cloud computing business over allegations of anti-competitive practices. The probe will focus on claims that Microsoft uses restrictive licensing terms to deter customers from moving data from its Azure cloud service to competitors.

Reportedly, Microsoft has been accused of tactics such as raising subscription fees for departing customers, imposing steep exit charges, and making its Office 365 products incompatible with rival cloud platforms. These practices could potentially leverage the company’s market power in productivity software to stifle competition.

While the FTC declined to comment on the investigation, Microsoft has yet to respond to the allegations. The Financial Times was the first to report on the probe.

Which? sues Apple alleging anti-competitive iCloud policies

Which? is taking legal action against Apple, alleging the company breached competition law by pressuring customers to use its iCloud service. Which? argues that Apple encouraged users to store their data on iCloud, making it challenging to switch to other providers, and then charged users when they exceeded the free 5GB limit. This practice, they claim, led to overcharges, costing consumers up to £13.36 ($16.98) this year in subscription fees.

Apple denies any wrongdoing, stating customers are not required to use iCloud and often choose third-party alternatives. However, if Which? succeeds, around 40 million Apple customers in the UK who have used iCloud over the last nine years could be entitled to compensation.

Which? CEO Anabel Hoult emphasised that the action aims to secure refunds for consumers, prevent future anti-competitive behaviour, and promote a fairer market. The group plans to file the claim with the Competition Appeal Tribunal.

Carl Zeiss opens first global capability centre in India

German optical tech firm Carl Zeiss AG has inaugurated its first global capability centre (GCC) in Bengaluru, India, and plans to double its local workforce to 5,000 over the next three years. The new centre will focus on cloud computing, cybersecurity, and network operations, alongside software development for Carl Zeiss’s medical tech division. This move highlights India’s transformation from an outsourcing destination to a strategic base supporting global operations.

Beyond the GCC, Zeiss is expanding its presence in Bengaluru with a new manufacturing plant slated to open in 2025. This facility, the company’s largest investment outside Germany, will be its fifth in India, contributing to its workforce growth. The India unit, also involved in R&D and sales, is projected to reach a revenue of 22 billion rupees for the year ending September 2025—a 19% increase.

India’s GCC sector is booming, with Karnataka’s government aiming to double GCCs in the state by 2029. Industry reports expect the Indian GCC market to reach up to $105 billion by 2030, reflecting the country’s increasing role in global business support.

Keppel partners with Mitsui Fudosan on data centre deal

Singapore’s Keppel has announced an agreement to acquire an AI-ready data centre being developed by Japan’s Mitsui Fudosan in Tokyo. The deal comes shortly after Keppel revealed plans to significantly increase its data centre funds under management, aiming to take advantage of the growing AI sector.

Mitsui Fudosan will handle the core and shell development of the facility, while Keppel’s private fund will oversee the fit-out works. The data centre is expected to be completed by 2027, with Keppel taking on the role of facility manager, which will contribute to its recurring income stream.

Keppel emphasised its ongoing partnership with Mitsui Fudosan to develop a strong pipeline of assets for its upcoming Keppel Data Centre Fund III. Financial details of the transaction have not been disclosed due to confidentiality agreements.

NTT DATA partners with Google Cloud to boost AI and cloud solutions in the Asia Pacific region

NTT DATA and Google Cloud have partnered to accelerate the adoption of cloud-based data analytics and generative AI solutions across the Asia Pacific region. By combining NTT DATA’s industry expertise and client base with Google Cloud’s cutting-edge technologies, the partnership aims to drive innovation, improve operational efficiency, and enhance agility for enterprises.

Specifically, the collaboration focuses on co-developing industry-specific solutions for sectors such as healthcare, financial services, manufacturing, retail, and the public sector. A new NTT DATA Google Cloud Business Unit will also be created to focus on joint solutions in data analytics, GenAI, applications, infrastructure, cybersecurity, and SAP on the Google Cloud Platform (GCP).

The expansion also involves enhancing internal expertise, as NTT DATA plans to certify at least 1,000 more engineers in the APAC region and provide advanced training to its teams to ensure successful solution delivery. With global public cloud spending projected to grow significantly, the partnership aims to capture the increasing demand for cloud services and AI-driven solutions.

The goal is to grow NTT DATA’s cloud business in APAC by more than 10 times over the next three years. By combining NTT DATA’s digital transformation portfolio with Google Cloud’s advanced technologies, the collaboration is set to drive modernisation in AI, cloud infrastructure, and cybersecurity, offering businesses secure and efficient solutions to accelerate their digital transformation.