6. 3. 3  Provision of services related to free software

The provision of services has some advantages over its proprietary software equivalent, such as the absence of substantial licensing costs, product quality and access to the source code. These features allow the efficient and effective provision of services, resulting in significant added value for the customer.

Nonetheless, it can be difficult to hold on to customers in the long run due to the ease of market entry and the difficulty of providers to differentiate their services.

Small and medium enterprises

The main business opportunities concern the lack of packaging and the distribution of applications based on free software (such as installation, support, customisation or training), with the exploitation of specific niche markets.

By contrast, custom developments on specific applications may encounter difficulties with integration and compatibility with later versions. The emergence of competitors in the same industry can also be problematic because of the limited scope for coopetition.

Large companies

The participation of large companies in projects based on free software can be relatively straightforward due to the existence of a prior infrastructure and organisation. The use of free software also cuts costs and improves brand image in areas such as reliability, strength, confidence, stability and professional support.

Nonetheless, formalising a brand image is not easy in the short term. The dominance of large proprietary software corporations on the market complicates positioning, and the risk associated with big projects is also greater.