This is a typical question for companies starting to think about switching to Open Source.
Here come the notion of “software maximum cost”.

Let me explain…

When an organisation is working alone to produce a software the only, it is the only sponsor (simple truth ).Every activities on software production are entirely financed by this organisation. It endorse then the total cost of the software or the “maximum cost”.

By switching open, this company gives itself the possibility to share the cost of the product. Another company or any other volunteers can produce a part of the software. This development will benefit to all the community. Any participant will have the right to use the software to turn into a business model but will only finance part of it (in other word make business).

As a consequence either the software will be cheaper to produce fro any participants.
Linux is a good example of this. Before IBM, HP and other used to develop and maintain their own UNIX flavour. Now, they are contributing to the free operating system. Their were able to reduce the required budget for using a operating system and still be able to have it customise for their own needs.

Interested to share the price but get the full product?

Regards,

Ben

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