National Institute of Standards and National Institute of Standards and TechnologyTechnology

21 March 2007, Gaithersburg 21 March 2007, Gaithersburg -- USAUSA

EU research on software and servicesEU research on software and services

Arian Zwegers

DG Information Society and Media

Overview Overview • ICT in European Union

• A changing world• Trends in business and ICT• ICT market in EU• Software and services market in EU

• EC Activities• i2010 Strategic Framework• Examples of policies

• Framework Programme 7 (FP7)• (ICT) R&D expenditure• FP7 outline• ICT Work Programme 2007-2008• Software and services research• NESSI Technology Platform• International Cooperation

A Changing WorldA Changing World Major countriesMajor countries’’ share of world GDPshare of world GDP

Source: Financial Times, 22 February 2005

0

10

20

30

40

50

60

70

1820 1870 1913 1950 1973 2001 2015 2025

Big four westernEuropean countries*US

Japan

India

China

Business and ICT transformationsBusiness and ICT transformations

1960 1970 1980 1990 2000 2010Mainframes mini-computers PC client-sever Internet Convergence

Company levelinformation& automation

Automated Support; Costs

DepartmentalEmpowerment

Speed; Logistics

PersonalFreedom

BusinessProcessRe-engineering

Pervasive global& integrated groups

Supplychains

Anytime, anywhere; Platforms and ecosystems

Globalisation, customisation, outsourcing

Trends in BusinessTrends in Business• Changing “cooperations / partnerships”

• Do it all yourself• Craftsman

• Outsourcing• Focus on core competencies

• Open Innovation• See Open Innovation by Henry Chesbrough

• Ecosystems• Various interpretations possible

• Connect and Develop• See Harvard Business Review, March 2006

• Crowdsourcing• See Wired, June 2006

Trends in ICTTrends in ICTSome examples:

• Convergence

• Broadband adoption

• Consumerisation of technology

• RFID – Radio Frequency Identification

• Open Source Software

• SOA – Service Oriented Architecture

• SaaS – Software as a Service

ICT Market, 2005ICT Market, 2005 By region and by productBy region and by product

Europe, 33.8%

US, 28.0%

Japan, 14.7%

Rest of World, 23.5%

Office equipment, 1.3%

Computer hardware, 12.7%

End-user communications equipment, 4.5%

Carrier services, 44.2%

Datacom and network equipment,

6.5%

Software, 10.7%

IT services, 20.0%

Total value = € 1,949 billion

Total value = € 659 billion

Europe 33.8%

Source: EITO, 2006

• Europe is world’s largest ICT market

• Europe has a large software and services market

Increasing awareness of ICT contributionIncreasing awareness of ICT contribution

• Significant contribution ICT to productivity and growth

• Direct contribution ICT sector to GDP, indirectly by take up and exploitation in other sectors

• ICT improves quality of life of citizens

• ICT is one of the key ingredients of sustainable development

• ICT contributes to Lisbon agenda

Software and services market in EU15Software and services market in EU15

Data missing – only EU15 available

46,9(28,4%)

118,1(71,6%)

0,60,91,01,32,42,64,44,57,88,8

12,6

Germa-ny

UK France Nordic2 Italy Spain Nether-lands

Austria Bel-gium

Other3 Por-tugal

1,01,82,02,75,67,28,6

11,5

18,824,1

35,1

UK Germa-ny

France Nordic2 Italy Nether-lands

Spain Bel-gium

Others3 Aus-tria

Por-tugal

1 Includes Norway2 Includes Norway,

Sweden, Finland and Denmark

3 Includes Greece, Ireland, Luxem-burg

Source: PAC

Software (Market volume 2005e)

IT services (Market volume 2005e)

EU151 SITS 2005e in bn EURMarket volume: 165.0 bn EUR

IT services

Software

1.2 Market vol-ume in bn EUR1.2 Market vol-ume in bn EUR

• Almost 200 B€ SITS market in Europe

• Different software / services ratio across Member States

http://www.softwareleadership.info/

Source: PAC

Top100 suppliers serving the Western European Top100 suppliers serving the Western European Software & IT Services marketSoftware & IT Services market

By number of companies (in %, 2004)1 By revenue (in % of Top 100 revenue, 2004)

4

36

63 4 5

10

13

20

FR

IT

US/Canada

DE

SE

AsiaUK

NLRoE

61% of companies come from

Europe

These Euro-pean compa-nies account for only 43% of the overall

Top 100 companies’

revenues

3

54

33

11

13

10

1 1

UK

FR

DE

NLITSE RoE

US/Canada

Asia

Source: PAC

By number of companies (in %, 2004) By revenue (in %, 2004)

• 60% of companies come from Europe

• 43% of revenues stay in Europe

http://www.softwareleadership.info/

Software and ServicesSoftware and Services

• A key industrial sector• 1 Mio specialists in EU• 200 B€ market (70 B€ Software)• EU ICT market growth mainly driven by software

and IT services (EITO ’06): 5.8% for 2006-07

• The engine room of the Information Society• Important EU industry sectors depend on S&S• 70% of software development takes place in non-

software companies

Overview Overview • ICT in European Union

• A changing world• Trends in business and ICT• ICT market in EU• Software and services market in EU

• EC Activities• i2010 Strategic Framework• Examples of policies

• Framework Programme 7 (FP7)• (ICT) R&D expenditure• FP7 outline• ICT Work Programme 2007-2008• Software and services research• NESSI Technology Platform• International Cooperation

Activities by DG Information Society and MediaActivities by DG Information Society and Media

Regulatory FrameworkRegulatory Framework Policy StrategyPolicy Strategy

• The Lisbon Strategy• eEurope 2002

- SMEs to ‘Go Digital’• eEurope 2005

- Legislation (to identify & remove barriers)- SMEs- e-skills- Interoperability- Trust and confidence

• i2010R&D Activities

R&D Activities

•• Framework Framework ProgrammeProgramme 66 - 3.6 B€ to ICT priority (2003-2006)

•• Framework Framework ProgrammeProgramme 77- 9.1 B€ to ICT priority (2007-2013)

• New regulatory framework for electronic communications

• Directive on electronic commerce (2000/31/EC)

• Directive on electronic signatures (1999/93/EC)

• Directive on copyright and related rights (2001/29/EC)

• Directive on privacy and electronic communications (2002/58/EC)

• …

i2010 Strategic Frameworki2010 Strategic Framework

• A comprehensive strategy for ICT and media sectors• Single European Information Space

• Centred around convergence telecom, media, and information technology

• Innovation and Investment in ICT research• Increasing R&D efforts

• Inclusion, better public services and quality of life• Oriented towards citizens

http://europa.eu.int/i2010

Dec. 2006 (March 2007): Communication from the European Commission

December 2006

March 2006September 2006

June 2006

3 July – 17 Sept. 2006: Public online consultation

6-7 March: Internet of ThingsSept. – Oct. 2006: Analysis

of input received

Oct. – Nov. 2006: Drafting of the

Communication March 9, 2006 at CeBIT: Commissioner Viviane Reding announces the

launch of a Europe-wide public consultation

Ongoing research

and co-operation

15-16 May: Applications

16-17 May: Security & Privacy

1 June: Interop./ Governance

2 June: Frequency spectrum

RFID policyRFID policy Towards a CommunicationTowards a Communication

16 Oct. 2006: Final conference

http://www.rfidconsultation.eu

Other examples of policiesOther examples of policies ICT StandardisationICT Standardisation

• Open consensus building process

• Priority for ensuring interoperability, facilitating ICT uptake, and ensuring accessibility

• “Technical standards may be arcane, but control over them can determine the rise or fall of industrial empires. Just ask Microsoft, or Sony and Toshiba, which are vying fiercely to set the rules for the next generation of DVD technology. National prestige is also at stake. As Chinese officials like to say: third- class companies make products; second-class companies develop technology; first-class companies set standards” (Financial Times, 13 July 2006)

http://ec.europa.eu/enterprise/ict/policy/standards/ict_index_en.htm

Overview Overview • ICT in European Union

• A changing world• Trends in business and ICT• ICT market in EU• Software and services market in EU

• EC Activities• i2010 Strategic Framework• Examples of policies

• Framework Programme 7 (FP7)• (ICT) R&D expenditure• FP7 outline• ICT Work Programme 2007-2008• Software and services research• NESSI Technology Platform• International Cooperation

R&D ExpenditureR&D Expenditure as % of GDPas % of GDP

0.33

0.97

1.11

1.31

1.35

1.87

1.93

1.99

2.19

2.50

2.68

2.76

3.15

3.51

4.27

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Cyprus

Hungary

Spain

China

Czech Republic

UK

EU25

EU15

France

Germany

Korea

US

Japan

Finland

Sweden

Source: Eurostathttp://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-NS-05-002/EN/KS-NS-05-002-EN.PDF

• Other regions spend more on R&D than Europe

• Large differences within Europe

R&D expenditure by industryR&D expenditure by industry

• ICT R&D by businesses in EU far less than in US

• Many top 50 spenders in the world are from EU

Source: Financial Times, 21 March 2005

ICT R&D expenditureICT R&D expenditure

• Europe is spending less than other regions in ICT R&D

• Public ICT Spending is Fragmented across Europe

Framework Programmes

29.2

93.3

48.8

European Union USA Japan

0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2%

France

Germany

United Kingdom

Spain

The Netherlands

Sweden

Finland

European Union

United States

Japan

Annual ICT R&D Expenditure (% GDP)Comparative spending on ICT R&D in 2000

(Billion Euro)

Budgets of the EU Framework ProgrammesBudgets of the EU Framework Programmes 19841984--20132013

NB: Budgets in current prices

Source: Annual Report 2003, plus FP7 revised proposal

0

2000

4000

6000

8000

10000

12000

1984 1988 1992 1996 2000 2004 2008 2012

€ mi l l i o n

International Co-operation

Science in Society

Research Potential

Regions of Know-ledge

Research for the benefit of SMEs

Research Infrastru- ctures

CAPACITIES

Marie Curie ActionsPEOPLE

European Research CouncilIDEAS

9. Security & Space

8. Socio-economic

Research

7. Transport

6. Environment

5. Energy

4. Nano, M

aterials, Production Techn.

3. ICT

2. Food, Agriculture

Biotechnology

1. Health

CO

OPER

ATIO

N

77thth Framework Programme (2007Framework Programme (2007--2013)2013)

http://cordis.europa.eu/fp7/

€ 32 B

€ 7.5 B

€ 4.7 B

€ 4.2 B

ICT Work Programme 2007ICT Work Programme 2007--20082008

Futu

re a

nd E

mer

ging

Te

chno

logi

es

Cognitive systems, robotics andinteraction

Network and service infrastructures

Components, subsystems and embedded systems

Digital content and knowledge

ICT for health

Intelligent car and sustainable growth

ICT for independent living and inclusion

End-to-end systems for Socio-economic goals

Tech

nolo

gy ro

adbl

ocks

€ 585 M

€ 193 M

€ 434 M

€ 203 M € 174 M € 159 M € 73 M

€ 185 M

€ 14 M

Technology Platforms

i2010 Flagships

ftp://ftp.cordis.lu/pub/fp7/ict/docs/ict-wp-2007-08_en.pdf

1.4

Secu

re, d

epen

dabl

ean

d tr

uste

d in

fras

truc

ture

s

1.7 Critical Infrastructure Protection

1.6 New Paradigms and Experimental facilities

1.1 The Network of the Future

1.2 Service and Software Architectures,Infrastructures and Engineering

Challenge 1 Challenge 1 ‘‘Pervasive & Trusted Network & Pervasive & Trusted Network & Service InfrastructuresService Infrastructures’’

1.3 ICT for the Networked Enterprise 1.5 Networked Media

ftp://ftp.cordis.lu/pub/fp7/ict/docs/ict-wp-2007-08_en.pdf

•Exploiting future infrastructures•Fostering advanced applications

Scope of Objective 1.2

Expected benefts

1.2. Service and Software Architectures, 1.2. Service and Software Architectures, Infrastructures and EngineeringInfrastructures and Engineering

Standardised architectures

Productivity, openness

Dependable services

Managability

R O A D M A P P I N G Fassbinder, NessiSoft, 3S

MODELPLEX

VIDE

SELFMAN

MUSIC

CREDO

SHADOWS

SIMS OPUCE SMS

FLOSSMETRICS

QUALOSS

SELF

SQO-OSS

COMANCHE

MODELWARERODIN

SODIUM

AMIGO INFRAWEBS

MADAM

PROMISESECSE

DEDISYS

GORDA

WS2

CALIBREEDOS

FLOSSWORLD

TOSSAD

PLASTIC

REDSEEDS

EVOTEST

AMPLEMOMOCS AOSD

STASIS

ASG

MIDASCOMET QUALIPSO

RODIN

PYPYTEAM

TRUSTCOM

FP6 Research in Software TechnologiesFP6 Research in Software Technologies

http://cordis.europa.eu/ist/st/projects.htm

WaveWave 2 2 –– start 2006start 2006

Degree

DataminingGrid

data, knowledge, data, knowledge, semanticssemantics

OntoGrid

InteliGridK-WF Grid

Chemomen tum

A-Ware Sormaplatforms, user platforms, user environmentsenvironments

CoreGRIDvirtual laboratories

UniGrids HPC4U

g-Eclipse

Gredia

GridComp

Grid4all

Provenance

AssessGridGridTrust

trust, securitytrust, security

Grid services, Grid services, business modelsbusiness models

ArguGrid Edutain@ Grid

GridEconGridCoord

Nessi-GridChallengers

NextGRIDservice

architecture

Akogrimomobile

services

BREINagents &

semantics

BeinGridbusiness

experiments

supporting the Grid communitysupporting the Grid community

SIMDATindustrial

simulations

XtreemOS

Linux based Grid

operating system

BeinGridbusiness

experiments

KnowArc

EC-GinBridge

Grid@Asia EchoGrid

international cooperationinternational cooperation

Specific support action

Integrated project

Network of excellence

Specific targeted research projectWave 1 Wave 1 –– start 2004start 2004

EU Funding: 130 M€

QosCosGrid

FP6 Research in Grid TechnologiesFP6 Research in Grid Technologies

http://cordis.europa.eu/ist/grids/projects.htm

Other relevant results (1)Other relevant results (1)

1. The Software and Services Challenge

2. Service-Oriented Computing Research Roadmap

3. NESSI Strategic Research Agenda

4. The Networked Future Folder

5. The service engineering area (V2)

http://cordis.europa.eu/ist/st/reports.htm

1 3 4 5

Other relevant results (2)Other relevant results (2)

6. Software, Services and Complexity Research in IST

7. Futuris report on Euronews

8. Leaflet on evolution Software & Services from FP6 to FP7

9. Enterprise Interoperability Research Roadmap

10. Future for European Grids: GRIDs and Service Oriented Knowledge Utilities

6 9 10

http://cordis.europa.eu/ist/st/reports.htm

R & D EvolutionR & D Evolution

Service Architecture

Complexity and dynamic composition

Service infrastructure

FP5 FP6 FP7

Component based

SW Engineering

Architectures

Services

Complexity

Open-development

Grids

European Technology PlatformsEuropean Technology Platforms

http://cordis.europa.eu/technology-platforms/home_en.html

What are they Industry-led public-private partnerships that bring together industry, research community and public authorities in areas of strategic economic importance for Europe

Objective World class performance in research and innovation in ICT by closing the gap with Europe’s leading competitors

Focus on user value and end-to-end solutions, on convergence, innovation, standards, interoperability, spectrum, IPRs, international cooperation

www.nem-initiative.org

www.emobility.eu.org

www.isi- initiative.eu.org/

www.nessi- europe.com

Large Scale EU Partnerships

joining the future

Industrial CommitmentIndustrial Commitment

http://www.nessi-europe.eu

Aims to develop a visionary strategy for Software and Services driven by a common Strategic Research Agenda where innovation and business strengths are reinforced.

Expected impact:• standardisation, common service platform open standards• improve EU competitiveness in S&S• reduce sector fragmentation and align R&D efforts• openness: an open initiative mobilising SMEs, academia and industry• address key R&D and policy challenges in S&S

International CooperationInternational CooperationObjectives

• To improve cooperation in the development of standards and interoperable solutions and in roadmapping

• To improve scientific cooperation for the mutual benefits of Europe and target regions

• To support other Community policies and in particular the development policy

• To support activities linked to ICT-based research infrastructures

ftp://ftp.cordis.lu/pub/fp7/ict/docs/ict-wp-2007-08_en.pdf

Other Other ProgrammesProgrammes• Competitiveness and Innovation Framework Programme (CIP)

• Downstream parts of research and innovation• Technology transfer• Implementation and market take-up of existing new technologies

• Budget: roughly 0.5 billion Euro per year • Priorities ICT Policy Support Programme for 2007: eGov, eInclusion, eHealth

• Structural Funds and Cohesion Fund • Objectives:

• to reduce disparities in development and promote economic and social cohesion in the European Union

• to improve the effectiveness of the Community’s structural assistance by concentrating the assistance,

• to promote economic and social cohesion and solidarity between Member States

• Budget: roughly 28 and 2.5 billion Euro per year

• Eureka

CIP: http://europa.eu.int/comm/enterprise/enterprise_policy/cip/index_en.htmStructural Funds: http://europa.eu/scadplus/leg/en/lvb/l60014.htmCohesion Fund: http://europa.eu/scadplus/leg/en/lvb/l60018.htm

For More Information ...For More Information ...

FP7http://cordis.europa.eu/fp7/http://cordis.europa.eu/ist/

Software & Service Architectures and Infrastructures

http://cordis.europa.eu/fp7/ict/ssai/

NESSIhttp://www.nessi-europe.com

E-mail<first name>.<last name>@ec.europa.eu

FP7http://cordis.europa.eu/fp7/http://cordis.europa.eu/ist/

Software & Service Architectures and Infrastructures

http://cordis.europa.eu/fp7/ict/ssai/

NESSIhttp://www.nessi-europe.com

E-mail<first name>.<last name>@ec.europa.eu