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The Federal government's decision to create a comprehensive system for future online collaboration and social networking projects is growing proof that Canada acknowledges the explosive potential of Web 2.0, industry experts say.

"This definitely signals a long term commitment on the part of the government to move forward on Web 2.0," according to Michelle Warren, analyst for Info-Tech Research Group based in London, Ont.

She said governments are usually cautious in adopting new technology, and Canada hasn't been an exception.

The term Web 2.0 is used to refer to online collaboration and user-generated content and the tools that enable these – such as blogs and wikis. Government 2.0 refers to the application of these tools by government agencies.

Warren said the Canadian government has held back in implementing Web 2.0 tools mainly because of security and privacy concerns.

"Ontario even famously pulled back on allowing Facebook in government offices because it has the potential of distracting employee," the analyst said.

An indication that there may be a change of heart and strategy came recently when the Feds called on Open Text Corp. to provide technology for future Web 2.0 initiatives in government.

Waterloo, Ont.-based Open Text develops enterprise content management (ECM) and project collaboration software.

Late last year the company announced integration of Web 2.0 capabilities into its product offerings, notably its RedDot Web content management suite.

Although many Canadian provinces and jurisdictions already employ a variety of Web 2.0 tools to reach out to the public as well as enable online collaboration for staff, a more encompassing system has yet to be developed.

There's speculation the deal with Open Text could change all this.

The contract with Federal government requires Open Text to deliver a variety of data storage and management software products that will form the foundation of the country's "government 2.0 strategy".

Open Text did not reveal the dollar amount involved in seven-year contract.

It said the project involves systems that can provide social networking capabilities for a maximum of 250,000, and will cover 58 government departments across the country.

Open Text's original ECM contract work with the government began in 1997, according to Dan Larocque, executive director, Canadian public sector, for Open Text.

The new contract announced yesterday will involve rollout of software products based on the company's eDocs technology.

Although Larocque would not talk about the government's specific plans, he said the software products can be used for wikis, blogs, online conferencing and other social networking and collaborative services.

A senior Ontario government official, however, believes that the genie could be out of the bottle.

"There's a general sense that if we don't move in this direction the public will force us there anyway," said Karl Cunningham, head of Ontario's e-Government Branch.

The province is already using a variety of Web 2.0 tools. Facebook may be out, but the Premier's blog is definitely in.

Tagging is used in many youth-oriented sites. Provincial researchers and policy development workers collaborate via wikis and RSS is used to update and share information on Web sites used by provincial employees and partner organizations.

The Ontario Ministry of Agricultural Food and Rural Affairs (OMAFRA) has a podcast that that has become very popular with the province's farming community, said Cunningham.

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