Open standards are the first step of a functional transition to an open government. From there Open Source Software can compete against commercial software, once the ppl see that the FOSS offers the same features then the proprietary paid software they can easily switch to it. With open standards they only need to train the users, no data to migrate etc.
What do you mean with encryption? Does it need to be transport encrypted, end to end encrypted or is encryption at rest (when the server is offline) good enough?