Does Open Source mean free?

In a word – no (but your license costs are certainly cheaper).

While that may sound odd on the surface since most open source software is freely available for download under GPL (GNU Public License), many people conveniently forget that they need to spend time installing, configuring and customising the system to get it to do what they need it to for their business. For the technically competent, this is OK, but it still takes time and requires ongoing maintenance as new releases are made by the open source development team. And time costs money. For the non-technically minded, a contractor or web agency is required to do this work for you, which will incur a fee. So, just because you can download something for free doesn’t mean that it actually is “free”. As the old saying goes – “there’s no such thing as a free lunch”.

As with any project, the selection of a product or piece of technology to meet the business needs should always be carefully thought out. Start with a list of the requirements that are needed (brainstorm them and write them ALL down). Then prioritise them; we use the MoSCoW system from the Dynamic Systems Development Methodology (DSDM), but you can use whichever system you prefer. Once you have a list of prioritised requirements you can start looking for products, both commercial and open source, that fit your needs, and assess whether the system will actually do the job you need it to. If you don’t have the time or desire to conduct a vendor analysis, companies like ours can help you specify and identify your system requirements.

UPDATE 8th July 2004:An article in a similar vein:
The Myth of Open Source

UPDATE 17th August 2004:
There is an excellent report published by Forrester Research looking at the total cost of ownership of Linux and Windows systems, so you don’t just have to take my word for it One of the key points that comes out of this paper, and many others like it on the Internet, is that the set-up costs of Linux/Open Source systems is generally lower, but the ongoing maintenance costs are usually higher, and so any initial savings are repaid in the longer term.

The Costs And Risks Of Open Source – Forrester Research (325Kb, PDF)