Developing software (or hardware) is more rewarding if there are many potential users, now and in the future.
It might be quite nice to develop a new light bulb that is perfectly suited for the homes of Phil and his family in Punxsutawney. But it is much better to develop a new light bulb that can illuminate all homes of the world. A developer would get more help from others on this way, and there would be a wider choice of programming tools. Not to speak of any financial rewards.
You may argue that this is not possible because of the different light bulb sockets, voltages, and other technical and legal restrictions. See? That is why we need open standards that are the same wherever possible. Even for common supplies like electricity or the dimensions of nuts and bolts it is not a simple task to agree on an open standard.
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The USA agreed to use the metric system in 1866, still it is not in common public use.
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Some efforts were successful, however. September 3rd, 1967, Sweden changed the whole car traffic from left side to right side driving. That was relatively easy back in those days. Would be more difficult today. See the huge street constructions at the former Chinese/Macau border, where traffic has to change from one side to the other without crashing into each other.
Now, back to software. Is it easy to change software standards, once that people agree something should be changed? Not really. Even when people who use expensive, suppressive, proprietary de facto standards are given the chance to switch to free alternatives (free as in beer, and free as in unrestricted use), they may decide to stick to what they have.
You can take a horse to the water but you can't make him drink. But you can try to make the water so refreshing and delicious that no horse can resist.
Enter ODF. The OpenDocument Format is an approved international standard, like the meter or the second. That means that ODF based software solutions that you develop today will be valid and useful everywhere on the world, now and forever. It is not necessary to waste your time on developing exceptions for one brand of browsers or another brand of operating systems.
Imagine how a world with only open standards will look. You cannot imagine? Neither can I. But there are first steps visible everywhere.
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Extensions for OpenOffice.org and StarOffice exist for only a short time now. And already more than a hundred extensions were developed, almost all of them for free and fair use.
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The hybrid file format that is available within the Sun PDF Import extension is an example of an ingenious merger of an open standard and a publicly released de facto standard. The hybrid file format contains the same document in ODF and PDF together in one .pdf file. Users of OpenOffice.org can open this hybrid file and edit the contents like any other Writer, Calc, Draw, or Impress file, then export back to the hybrid format. Users of other PDF reader programs can open the same .pdf file and see the PDF, as they expect. (Requires at least OOo 3 Beta)
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Or have a look at this video by one of the StarOffice/OpenOffice.org developers which shows how to use the WebDAV support of OpenOffice.org to use Writer and Calc as editors for web sites. Perfect web sites, created and edited without the need to learn html.
By the way, googling for "the beauty of open standards", I found a nice blog about open standards by David A. Wheeler that is worth reading.
