Software is infrastructure of life

“Software is vital to our country’s global competitiveness, innovation, and national security.” CMU 561

The results showed that lack of infrastructure generates poor standard living, economic deficit and impair poverty. The impacts are felt widely on the life, social services and economy in general. Instant remediation of infrastructure debt is crucial for countries not meeting economic and democratic sustainable goals. ??

Today “software is infrastructure” states extensive multi year study conducted by over 200 academics subject matter experts, security and economic policy leaders. ?

It is notable that Europe’s “software is infrastructure” is both lacking behind and basically totally outsourced. Several policy makers, leading industry visionaries and key industrial stakeholders have proposed to fix the broken policy model, foresight and planning. Software engineering professional and academics have raised innovation concerns, warned about digital power shift and strongly highlighted direct costs to life, social services and economy. Despite the many recommendations and reports no action is taken by European Commission to fix rotten and overly optimistic “software is infrastructure” policies to more impact-oriented ones.

Main characteristics of software infrastructure:

• essentially public goods, providing in principle, non-exclusive services accessible to all
• fixed investments, bulky and lump-sum with long (or no) payback periods etc. education
• having considerable variation in gaining capabilities maturity
• output mostly paid for in local currency (less true for telecom and ICT-services)
• the public sector has tried to play a dominant role (finance, regulation), and
• sensitive to security politics, lobbying, corruption and political shifts.

How important is software infrastructure to European Union’s economy?

Every economic book and theory argue that robust and sovereign infrastructure is the foundation for nations and economic unions growth and competitiveness. Lack of infrastructure imposes massive cost to current life form and threatens future sovereignty. The infrastructure gap may lead to weak governance, garbled public investment programs and corruption. ?

Infrastructure development is major role of public sectors, governments, and policy makers. New technical and intangible “software is infrastructure” capability cap in these public sector structures, forums and public office leads to even bigger challenges on other public policies in areas of wellbeing, healthcare, education, jobs, security and economy. ?“Software is infrastructure” is no longer technology question in society – it is public infrastructure question defining the future potentials of any other public policy actions on competitiveness, productivity and innovation not forgetting inequality, welfare and universal health care.

Today “software is infrastructure” is impacting every area on life, business, industry and society. The economic value of software alone as separate general-purpose technology (GPT) is estimated to be two (2) billiard euro’s globally rising at the rate of 8 – 16% annually. Economies lacking own “software is infrastructure” face poor living standards, continuous economic decline, productivity regression and high costs of free trade.

The “software is infrastructure” is more than infrastructure today. It has evolved to globally integrated supply chain network managing information flows, telephone calls, communication and monetary transactions. The efficient and reliable management of supply chain network with software has grown to critical societal function. ?No a single supply chain data transaction will take place without software. ??

How software infrastructure generates benefits to society?

The gains from “software infrastructure” are delivered and measurable only in life, society and economy. The foundation of returns is created by investments on aligned policy program portfolio containing equally important and bonded actions. The four strategic coordinated actions are: 1) development architecture and project portfolio, 2) talent and education project for current and future capabilities, 3) aligned project network “cluster” formed by customer organizations to lead continuous development and operations, and 4) engagement of partners supporting growth beyond clusters core architecture. The coordination by software economy and industry is the most critical phase of mission’s development. The coordination of investments and programs creates network effects without unpredictable risk. ?

As result of this “software infrastructure” mission-based development new critical element for sovereign infrastructure is born to close the gap and reduce infrastructure debt, increased activity generated more and more local opportunities for software-based innovations, expansion of talent pool accelerates experience, innovation and entrepreneurial activity and spurring economic activity. The “software infrastructure” helps in the acceleration of innovations on socioeconomic outcomes. One of the key benefits is expansion of business activity, new opportunities for innovation and rise of broad entrepreneurial capability from education as new dynamic capability.

The “software infrastructure” is key resource for rising capital, education manpower and developing technology as necessary inputs in the growth process.

Does software infrastructure affect trade deficit?

Several studies show that “infrastructure positively promotes exports while negatively affecting trade deficit. … long run aggregate and sub-indices of infrastructure promote exports and decrease trade deficit.” The lack of advanced and modern “software infrastructure” is major blockade to economic development causing more and mode trade deficit and more likely economic convulsion.

The biggest costs from not having “software infrastructure” come from free-rider dilemma where public sector assumes that free services will remain free and isolated. This short sighted and short-term optimism leads to under investments to foundations of “software infrastructure”.

Does software infrastructure help in post covid financial crisis mitigation? ?

The quality of life, economy prosperity and health security depend crucially on our abilities meet new conditions set by covid variants. The failed digital single market leading to total outsourcing of digital services and e-skills strategy neglecting software engineering as strategic capability have led to significant reallocation resources. Covid pandemic is prolonged and enduring new normal. There will be massive demand to develop vaccines to new variants and on long-term to get vaccination coverage to avoid new Frankenstein variant to even to rise. ?

The sovereign software infrastructure plays central role in delivering financial resources to this new economic order calling for vast economic resources. Strategic governance of “software infrastructure” will provide sustainable path to new economic resource when systems software, code and life-cycle transitions are optimized from new societal infrastructure perspective. ?

What is software infrastructure role in data economy?

The “software infrastructure” is the foundation and enabler for data economy. ?The recent 2021 competitiveness report on national agendas states “Software is infrastructure”, “Software is the backbone of ALL critical systems” and “Software includes complex supply chains”. ?The modern “software infrastructure” power every society, industry, device and individual today. ?To innovate, develop, operate and manage data economy the “software infrastructure” needs to maintain accordingly with emphasis on quality, persistence, functionality and life-cycle evolution.

“Software ensures our modern data-based standard of living and enables continued advances in defence, infrastructure, healthcare, commerce, education, and entertainment.”

How big is the software infrastructure economy?

The global “software infrastructure” business is estimated to be six (6) billion euros annually. ?

Lack of software infrastructure is the biggest treat to sustainable digital and data economy

The lack of software engineering education, software systems and software economy capabilities have been identified as greatest challenges in sustainable digital and data economy build from software on “software infrastructure”. ?There are many broad efforts and significant investments to regulation based economic development but none to the true sovereign “software infrastructure” based single market. Software is today integral part of skills, innovation and development any new service. Software has become integral part of the infrastructure of human life.

“Software has sometimes been compared to air: It’s invisible and everywhere, and everyone and everything needs it.” CMU 5601

Your coach to sustaining digital economy and data future,

Mika?Helenius

Read more on #strategic #innovation #autonomy #sovereigty #data:

Link: Sustainable digitalization

Link: Green Software Manifesto

Link: European Innovation Ecosystem Cramp

Link: The Skills Europe Needs 2020

Link: The 16 critical cyber sectors

Link: Cost of paranoid optimist on AI

Link: The state of emergency on digital economy

Link: European Software Agenda

Link: New EU's Common Technology Program

Link: Agile Society 2050

Link: Software-as-a-Advantage

Link: On chip silicon trojan cyber wars