Compatibility strategies in licensing, open source software and formal standards: Externalities of Java ‘standardisation’

Tineke M Egyedi, Department of ICT, Delft University of Technology

1/01/2005
(Original Publish Date: 8/14/2000)

Standardisation is a means of co-ordinating technology diffusion in a way that preserves compatibility. It is in essence an ex ante market mechanism, which levels the playing ground of product and service developers. Its primary value for software developers, users and its importance for public ICT policy developers lies in the positive externalities that derive from compatibility. But need these externalities be achieved by formal standardisation? I this paper I explore and compare the compatibility effects of de facto standards, quasi-open source software developments and - indirect means of - formal standardisation. I centre the comparison on the Java technology, which is currently one of the key technologies in the field of ICT. Sun's compatibility strategies regarding Java illustrate a whole range of options: proprietary de facto (licensing and open source software), gated-multiparty, consortium, and international formal standardisation. Sun tries to combine wide involvement of developers with cross-platform compatibility. Overall, its efforts have resulted in market co-ordination - although not without costs. Could formal standardisation bodies also have achieved this outcome?