Private Sector Stakeholders and DPG4DPI-Sustainability: A Mutual Benefit Approach
At a time of rapid geopolitical change, cuts to international development assistance, and increased emphasis on digital sovereignty - investing in digital public goods (DPGs) represents an attractive option for countries looking to build and evolve their foundational digital public infrastructure (DPI).As open source solutions that incorporate safeguards and best practices by design, and which can be adapted to meet contextual needs, DPGs provide an important starting point for helping countries implement and strategically maintain their most foundational components faster, better and at lower cost-over-time compared to leasing proprietary technologies or building from scratch. Few governments have the capacity and resources to do the planning, financing, deployment, operation or hosting of DPI components fully by themselves, and entering into well-structured agreements with different types of private sector stakeholders is therefore vital for the success of these digital transformation processes. However, when these agreements include the deployment and maintenance of DPGs, especially as part of building DPI, there are risks that may undermine the advantages that open source solutions provide. For these DPG4DPI-deployments we need to evolve a paradigm where a vibrant private sector benefits from actively seeking to meet implementing country objectives and to preserve the advantages and long-term sustainability of DPGs. To inform this topic, it is important to first highlight the broad variety of stakeholder types that are covered by the “private sector” term. Important groups include: Systems integrators (SIs) that specialise in bringing together various components, including hardware, software, and services, from multiple vendors to create a cohesive and functional solution for a client; Independent system vendors (ISVs) that develop, market, and sell software applications running on existing third-party infrastructure, and who tend to create specialised software solutions for more narrow markets; and Hyperscalers/cloud providers, global service providers that offer highly scalable and flexible computing infrastructure, and that provide a wide range of services, including compute, storage, networking, and AI. These different types of private sector stakeholders are similar in that they are all involved because of the expected commercial gain, but they differ widely in size, scope, engagement and business models. Hence, we must recognise that there is immense variation in the bargaining power, resourcing and contribution capacity within the group we collectively refer to as “private sector”.DPGs and the risk of extraction and lock-insThe open-source licence of a DPG ensures that access to the solution is non-exclusive, such that an implementer doesn’t need permission to adopt or adapt the solution to their needs and preferences.Most DPGs that are relevant for implementing DPI take this one step further by having permissive licenses, which give even greater freedom to the users to choose how to modify their own version of the solution, even allowing them to re-license derivatives under a proprietary license. In the context of system integrators (SIs) and hyperscalers, this offers greater flexibility for them to innovate and build upon existing code. Allowing for more seamless integration into existing proprietary systems and greater interoperability. However, it also gives these technology partners, who are at arm's length from the government, that same level of discretion in how they engage with the DPG, sometimes without clear incentives for contributing back to the source product. For example, larger private sector companies supporting multiple implementations of a DPG in different countries may find it more advantageous/profitable to offer a modified version under a new, proprietary license that they own the rights to, or make changes or configurations that result in detrimental forks and other types of lock-in. This risks undermining both the implementing country’s agency and the long-term sustainability of the core DPG.How can we shape private sector engagement in the deployment of DPGs, so that it results in genuine partnerships where country objectives are met alongside commercial goals, with sustained benefits also to the DPGs that are being deployed?