Conceptually you’d expect free software that is pretty similar in function to seriously over priced software to sweep the market. In some areas it does, but in some it doesn’t. Why?

The answer is that all software has hidden costs and some of these costs are prohibitive for some buyers. Here’s a list of ten reasons why free software may not be free, as far as the buyer is concerned:

1. Brand FUD: Microsoft is a well recognized brand, NeoWare is not. The fear here is imaginary. You imagine that there will be problems with the NeoWare product. This leads to uncertainty and doubt. This stops some people from buying the free product.
2. Price FUD: In this world you get what you pay for. Pay nothing, get nothing. Freeness arouses suspicion in many people and for good reason, usually. It’s not just the brand, it’s the freeness.
3. Cloneliness: How much of a product clone is NeoWare? If it’s not exactly the same, how close is it? Will it display all my Word files accurately (most, yes, all of them, probably not). How much effort is that going to impose on me?
4. Narcissism/Image: If I use this product people will think I’m a geek. I’d rather stay in the mainstream. It could work the other way, of course: Geek is chic! That’s how it is with fashion. There’s a generation of kids out there who won’t pay for music, but will pay for ring tones. Figure that, if you can.
5. Installation FUD: What if it just screws everything up. Who’s throat do I choke. This may relate to brand FUD but it’s slightly different. It doesn’t apply on a Mac in my experience because the software never screws your system, but Windows is different. On Windows, Microsoft software installations tend to work, but how good are the Open Source alternatives? It’s FUD.
6. The Learning Curve: “Don’t teach me how to fish, just take me to a fish shop.” In reality the learning curve is probably bigger for Office 2008 than NeoWare. But the perception may be otherwise. And, some free software products do impose a learning curve.
7. Support: If something costs nothing, will you ever get service, if you need it? Actually this is the revenue stream that most free software depends on, so it shouldn’t be a problem. In reality for desktop software the Internet is your best support channel. Forget the telephone. But for many people it’s “someone I know” and if that someone doesn’t have NeoWare, maybe NeoWare is risky for you.
8. Software Management: Managing a PC sucks. Why not just use Zoho or Google for word processing and ditch both MS Office and NeoWare. Yes. why not? You have to manage the software and the goddam files and who knows what grief is in store if your disk dies? This is a hidden cost - and you may believe it’s lower with the devil you know.
9. Non-buyers Remorse: I never paid for it and there’s this button on the web site asking for donations, so I’ll send the NeoWare team $10. It’s only fair. You may not be afflicted like this. I am.
10. Availability: MS Office is just easier to find. I bought it at Fry’s when I bought the computer. I just didn’t see any NeoWare on the shelves.

So, like it or not, that’s why Microsoft can charge $239 for an Office upgrade.