7. 1  Basis of the model

We are familiar with many of the technological features of free software that are similar to those of proprietary software to varying degrees. In other words, the fundamental differences – if any – between free and proprietary software are not based on the internal and external aspects of the product.

Broadly speaking, the technology applied to a product (for example, the design, architecture or specific implementation) does not in itself create a substantial differentiation between free and proprietary models, at least from the strict point of view of the finished product.

The differences between free software and other paradigms of software production (especially proprietary) mainly concern the specific features of the model of development, the user community and the differentiation of the product's value added.

These differences do not lie in technological aspects unique to the development of the application or software, but on the characteristics and implications underlying their production. In other words, free software sums up a particular orientation to create value in products and services that differ from the traditional point of view.

As explained in previous modules, the business models that exploit these distinctive features in a traditional market have been perfected in recent years. In all events, the chief value lies not in the software itself but in the capital acquired when it is adopted.

This capital formalises the foundations of free software. In other words, free software is based on the social production and network culture that not only allow but also promote its possibilities and effects.

The following sections will succinctly develop these two concepts. We will first of all examine the main features of social production before moving on to characterise network culture and its impact on the economics on which free software is based.