Mr. Fuga’s attention became attracted to a fast talking IT sales man. His curiosity drove him to find out what the fuss was all about.

I noticed you some of the best qualified staff, good software applications options and support for $60.00/hour. How much is the cost of the CRM application? Mr. Fashad questioned.

No charge, it’s under the GPL licensing structure. Just actual time spent altering the open source application to match your environment.  That is only $60.00 to $100 an hour. Our model is unbeatable, no political cost, only an excellent workable study and deployment to your environment, replied the open source vendor.

My total cost of ownership is $10,000, assuming you analyzes, design, and implement the CRM application for my firm?

Exactly, and we can train your staff within that budget or support the application. Also, there are multiple companies, including the larger ones that will be willing to support you. I bet, we are cheaper all around, replied the open source vendor.

Fuga was sold on the open source vendor, since he had done his homework and understands the IT industry.  After a long and convincing conversation, Fuga had the open source vendor compare shop with him. The vendor also wanted to show that a well appraised open source vendor is a good deal if not the most optimal solution.

The first stop was a medium size vendor. Similar CRM software and support went for $100,000 to deploy, excluding licenses per server, clients, etc.

Why is it that your firm can do the same services for 10% of a medium firm? Mr. Fuga wanted to know from the open source vendor.

You see, we design the code; they harvest it, double or triple it to cover cost and related politics of selling. The smart shoppers come to us direct. Although, the open source market has it share of snake-oil-merchants, it’s fairly perfect with some home work of the principals involved. 

The open source vendor and Mr. Fuga continued their comparative shopping and came upon a similar CRM, with people in dark suits, raffles with winners, high tech gifts, etc. The cost of their comparative CRM stood at $1,000,000.  Fuga was shocked to his pants and asked the open source vendor in a fainting voice.

What are they offering for the $1,000,000 dollars for a CRM?

They’re contractors who use our software and support services, replied the vendor.

How come? Fuga countered.

They have to pay all these people along the chain. Since you have done your homework, you’re already saved your company more than 90% of the cost of the CRM.

There is that political cost even if the solution is almost for free; same solution added cost that you don’t require to pay along the supply chain. It’s difficult buying praise from a political figure.

Note:** This story is fictional and used to show how open source may be compared with commercial software applications.