In our modern society, the importance of the information and communications technology (ICT) sectors, i.e. telecommunications, computing and electronics (production and consumer), has reached unprecedented heights. These industries are innovating at a dramatic pace and converging into one, handling, transmitting and reproducing information with the use of common procedures: digital technologies.

However, far more important than the changes that have taken place in the industries directly related to ICTs are the changes and improvements affecting other business activities, particularly the more traditional ones, where procedures have undergone a major overhaul. The effects on the economic fabric have led to the emergence of new business areas in order to meet new market demands that were previously unheard of.

Nonetheless, no economic legislation has changed and none of the economic phenomena related to ICTs are qualitatively new. What has changed, if anything, is the relative importance of certain economic effects on our society, such as intellectual property policies and product compatibility. If we look more specifically at the economic effects on the software industry, we will reach a similar conclusion.

Recently, in the software industry, we have seen how free software has been opened up and deployed among the general public. Free software has positioned itself in diverse sectors of the generic software market as a valid and viable alternative, and conclusively so in some specialised sectors (such as web server software). This situation has affected the proprietary-based software industry and led to the rise of new business models related to the dissemination, development, support and implementation of free software.

The aim of the Economic aspects and free software business models subject is to provide the necessary knowledge to understand and implement free software economics through the study of economic aspects and analysis of the related business models, in combination with the opportunities offered by this new market.

The first module of the subject outlines the economic concepts required to analyse the economic structure of the software industry in general and to conform a specific business model based on free software.

The second module of the subject briefly describes the main features of the software market in relation to the consolidated business models and potential customers of companies based on free software.

The third module of the subject introduces software from a business angle, focusing on the market in which the different solutions compete and on the business strategy for attracting potential customers.

The fourth module explores the business models related to free software. To begin with, it analyses the classifications proposed by some authors of note. It then defines a particular classification for the subject that takes into account the most relevant financial characteristics of the business.

The fifth module examines free software development from a company perspective. Here, we will consider both the most relevant features of the software project and the special features relating to the community of free software users and their functional and legal management.

The sixth module describes the main advantages and disadvantages of the free software model for the business strategy, considering both the perspective of the customer and of the company itself and the business model it adopts.

The seventh and final module of the subject analyses free software as an economic model, focusing both on the fundamental bases of its existence and on present and future implications in relation to the free software business.