Free Software: Getting It for Free Without Making the User "the Product"

"If it's free, you are the product."  

"If it's free, you are the product." This well-known maxim applies to many digital services offered by Big Tech. We know, for example, that the social networks and "free" tools of major platforms fund their operations through our personal data and targeted advertising: in reality, it is our attention and our information that are being monetized. But what about free software (FOSS, or Free and Open-Source Software)? Do these free and open applications, often available at no cost, hide the same trap? Are users of LibreOffice, Linux, or Nextcloud also being turned into products without their knowledge?

In this narrative and educational article, we will debunk the equation "free = you are the product" in the context of free software, and show how open-source models escape this logic. We will compare the business models of free software and proprietary software to understand how FOSS projects self-fund without resorting to reselling user data. We will also explore the philosophical differences (freedom, autonomy, transparency) between these two worlds and their concrete consequences for professional users. Digital sovereignty—that is, control over your data and your tools—will be at the heart of our discussion, with the idea that free software lets you take back the reins of your digital destiny, without hidden collection of personal information. Finally, two recent examples of open-source solutions beneficial to Quebec SMBs will illustrate these principles in practice. Enjoy the read!

Free, open source... and yet you are not the product

"Nothing is free" goes the adage. When Facebook, Google, or others offer a sophisticated service without charging the user, the money must be coming in from elsewhere. Most often, it is advertising based on mass data collection that funds these "free" services. Our profiles, our online behaviours, our interactions become commodities: as one expert bluntly puts it, "if it's free, the user is the product being sold.". This model has proven effective for proprietary platforms: in 2024, Google generated over $350 billion in revenue, primarily from advertising. It is easy to see why such companies are so keen on capturing our data and making us dependent on their ecosystem.

Faced with this evidence, one might think that anything free necessarily hides a trap. Some skeptics even wonder whether they should also be wary of "free" open-source software like Firefox, Linux, or LibreOffice. After all, if a product is offered at no cost, where is the catch? Fortunately, the comparison does not hold in the case of FOSS. The very nature of free software explains this difference: these are tools whose source code is open and that anyone can use, modify, and redistribute. Once developed, the cost of distributing free software is virtually zero, which makes it possible to offer it for free without ulterior commercial motives. In other words, the zero cost of free software is a choice to share, made possible by its collaborative mode of production, not bait to sell something else.

"A free and open-source program made by a non-profit organization like Mozilla has very little in common with a commercial service like Facebook, which costs money to run every single day." 💬 ; Tristan Nitot, founder of Mozilla Europe

This quote illustrates the distinction well. Distributing a copy of Firefox or Linux costs practically nothing once the software has been developed (often thanks to volunteers or initial grants). By contrast, running a global social network or proprietary cloud platform involves enormous infrastructure costs every single day—data centres, bandwidth, maintenance engineers—and therefore requires a continuous revenue stream. If the user is not paying a subscription, it is because their data is footing the bill. In the case of free software, there is no hidden bill of this kind. The community or organization behind the project funded its development upfront and deliberately chose to make it available to everyone. The zero cost is a logical outcome (zero marginal cost) and a philosophical commitment, not a smokescreen.

Of course, this does not mean that all free software is inherently virtuous and that every free proprietary offering is harmful—there are counter-examples on both sides. Take the case of Google Chrome: Google's browser is largely based on the open-source Chromium project, but it incorporates proprietary components and sends multiple telemetry data points back to Google. Nevertheless, these exceptions prove the rule: when free software is developed and supported by a community or a non-profit, the user is not a product whose data is monetized. On the contrary, quite often it is the user themselves who is at the centre of the project: they can contribute, give their opinion, even participate in building the tool. As we will see, the business model of free software is entirely different from that of the "commercial free" giants, and relies on levers other than selling personal data.

Two opposing business models: collaborative sharing vs. hidden monetization

To fully understand why free software does not need to turn the user into a commodity, let us look at how these projects self-fund. While the free licence prevents selling copies of the software, that does not mean no resources are needed to create and maintain it. It simply means that funding follows alternative, ethical, and transparent models, very different from those of traditional proprietary vendors.

💝 Funding free software: donations, services, and cooperation

Most FOSS projects combine several approaches to meet their needs:

• User donations and patronage: This is one of the historical pillars of free software. Non-profit foundations and associations (such as the Mozilla Foundation for Firefox, the Document Foundation for LibreOffice, etc.) collect donations from grateful users or companies interested in the project. These voluntary contributions can be one-time (annual donation campaigns, crowdfunding) or recurring (regular donors). Wikipedia, for example, funds its servers and developers through public donation drives rather than advertising. Similarly, the blogging platform Dotclear long survived thanks to a small team of passionate volunteers and community support. The advantage of this model is its alignment with user interests: the community directly funds the tool it uses, with no greedy intermediary. The downside is a degree of financial uncertainty—users must be convinced to contribute, which is never guaranteed—and sometimes limited resources compared to commercial giants.
• Public grants and partnerships: Many free software projects exist thanks to institutional or academic funding. For example, government or European programs support the development of open-source tools deemed strategic (security, infrastructure, digital education, etc.). Research laboratories also fund innovative free software projects. In addition, private companies may commission improvements or new features for a free software project they use, thus indirectly contributing to its funding. This sponsorship sometimes influences development direction (sponsors may express specific needs), but it injects funds while benefiting the common good. Major tech companies have invested in Linux or Firefox to support the ecosystem, without appropriating the project (the code remains open).
• Professional services and support: This is the model adopted by many open-source companies to be profitable without selling the software itself. The code is free and open, but around it orbit paid offerings of technical support, training, consulting, cloud hosting, or custom development. Thus, an SMB can use free software at no cost, then choose to pay a specialized firm to help install it, adapt it to their needs, or train their employees. This service-based model is a win-win: the user gets professional support when they want it, and the free software vendor (or integrator) generates revenue while staying true to the open spirit of the project. Red Hat, for example, built its success on the Linux distribution by offering support subscriptions to businesses, while keeping the source code of Red Hat Enterprise Linux freely accessible. Similarly, the office suite OnlyOffice, a free alternative to MS Office, is free of charge, but the company behind it sells online hosting and maintenance services to organizations that want them.
• Dual licensing or "Freemium" offerings: Some vendors combine the best of both worlds by offering two versions of their product: a free and open community edition, and an "Enterprise" edition with additional modules or premium support, sold under a commercial licence. This freemium model is used, for example, by Odoo (an open-source ERP we will discuss later): the vast majority of features are available for free as open source (Odoo Community), while advanced features or Odoo cloud hosting are offered for a subscription fee (Odoo Enterprise). An SMB user can therefore start at no cost, then choose to pay for specific features or the convenience of a managed service. The vendor generates revenue from these premium versions without forcing the user's hand: the user remains free to decide and is not held captive by the software.
• Community and in-kind contributions: Finally, it should not be forgotten that many free software projects thrive thanks to non-financial contributions: the time volunteer developers invest in coding, that users devote to documenting the project, translating the interface, testing, and reporting bugs, etc. This contribution of human resources is equivalent to indirect funding that strengthens the quality of the software. In short, free software often thrives in a model of shared innovation, where everyone benefits from the work of all. It is a virtuous cycle: the larger the community grows, the better the software becomes, attracting new users and therefore potential contributors or service clients.

By combining these different sources (donations, grants, services, premium offerings...), open-source projects generally manage to cover their costs and endure. This diversification is an asset: if one revenue source dries up, another can take over. Above all, these models never involve selling the user's personal data. As Tristan Nitot, former president of Mozilla, writes: the funding of free software does not come from collecting the user's private data. Consequently, the user need not fear that by using the tool, they are "paying" with their privacy.

💰 Monetizing proprietary software: data, advertising, and dependency

On the opposite side, the proprietary software model—especially for those offered free of charge by commercial firms—very often relies on strategies where the user generates profits unwittingly. The most obvious is advertising monetization: your interactions and personal information are used to profile you, then to display targeted ads sold to advertisers. This drives most "free" consumer services: social networks, messaging apps, search engines, video platforms... All this aggregated and analyzed data is worth its weight in gold for guiding marketing. It goes very far: for example, a free mobile health tracking app may quietly record your habits and sell them to data brokers, who in turn sell them to insurers or medical-sector advertisers. The paying product is no longer the app—it is you and your data.

Another monetization method, more subtle, is vendor lock-in (or induced dependency). A proprietary vendor aims to make you dependent on its solution to the point where doing without it becomes difficult, and then profit from it. How? For example, by storing your data in closed formats incompatible with anything else, so that your information is held captive by the software. If you try to migrate to another tool, the operation proves costly, complex, or even impossible: data must be converted, sometimes manually, with the risk of losses. Many client companies then give up changing providers, even if the price goes up. That is exactly the intended effect: a lock-in that allows the vendor to dictate terms. This practice is found in certain proprietary ERPs or CRMs that use proprietary database formats, or in closed office suites that do not respect open standards.

Furthermore, proprietary vendors rely on upselling and forced updates. The concept of planned obsolescence in software is very real: support for Version X of your software will be discontinued to push you into buying Version Y next year. Sometimes the software may even deactivate itself if you do not repurchase a licence at regular intervals. These commercial strategies ensure the customer keeps paying long after the initial purchase, maintaining a form of financial dependency.

In summary, for-profit models seek to monetize the user either directly or indirectly. Either the user pays out of pocket (licence, recurring subscription), or, if they do not pay, the company finds a way to extract value otherwise—most often through personal data or by creating a captive ecosystem. This philosophy is radically opposed to that of free software, where the relationship with the user is based on transparency and cooperation rather than exploitation.

It is important to note that not all proprietary software resorts to these abusive methods: in the professional world, many commercial software products are funded through clear licences and good service, without spying on the user. However, the risk exists because the closed model lends itself to it: since the code is secret, the vendor can hide data collection mechanisms or deliberately frustrating limitations (e.g., features locked in the free version to push the purchase of the paid freemium version). The user has no real say in the matter, nor any way to verify what is going on behind the scenes.

Thus, between free and proprietary software, the difference in business model is glaring. In free software, the user is a partner, sometimes a contributor, and the primary goal is to meet their needs through a collective effort. In free proprietary software, the user is a resource to be exploited, a reservoir of data or a captive audience that can be monetized. This divergence stems from fundamentally different values and visions of the digital world, which we will now examine.

Freedom, autonomy, transparency: from ideals to concrete advantages

The gap between FOSS and proprietary software is not just about money: it also comes down to different ideologies. Since the 1980s, the free software movement has been built on firm ethical principles: user freedom comes first, collaboration is encouraged, and code transparency is the norm. On the other side, the proprietary world values exclusive control by the vendor, trade secrecy, and financial profitability. These philosophical choices have very practical consequences for professional users, in terms of rights, security, and sustainability.

Freedom and sustainability: you keep control, long-term

A free software program grants you from the outset the "four freedoms" defined by the Free Software Foundation: use the program without restriction, study how it works (thanks to open source code), modify the program to adapt it to your needs, and redistribute copies, modified or not. Put differently, you are not buying a mere limited right of use: you truly own the software (collectively, with the community). This changes everything. You can install the tool on as many workstations as you like, integrate it into your own systems, duplicate it for a partner... without fearing a licence violation. You can translate the interface into French if it is not yet available, or hire a developer to add the specific feature your company needs. This freedom to adapt means free software can evolve with you, instead of locking you into a rigid framework.

"Free software is not just about price (which is relative); it is above all about freedom, control, and sustainability." 💬 ; Guide "Free Software for SMBs"

As this guide for small businesses highlights, the real benefit of free software lies here: guaranteeing your autonomy and the durability of your digital investments. You are not at the mercy of a single vendor. If the vendor stops development or goes bankrupt, since the code remains open, the community can pick up the torch—you can migrate to a fork (derivative) maintained by others rather than losing everything overnight. If the vendor decides to unilaterally change its pricing or terms of use, this will not affect your self-hosted version of the free software. You stay in control. At the scale of an SMB, this means fewer strategic risks: your business will not be held hostage by an external decision (such as the sudden increase in a proprietary SaaS subscription fee or the discontinuation of software you relied on heavily).

Moreover, the freedom of redistribution allows you to share your tools with your partners, clients, subsidiaries, etc. Imagine you deploy a free project management tool: you can absolutely install it at a subcontractor's site to facilitate collaboration—something that would be prohibited with most proprietary software (where each entity would need its own licence). This organizational flexibility, though less tangible, can be a competitive advantage in how you integrate your systems with your business ecosystem.

Transparency and trust: no more black box

When you use traditional proprietary software, you are operating in a black box. You must trust the vendor at their word: trust that the program does what it claims, that it does not spy on your activities, that it does not quietly exfiltrate your data to an unknown server. Unfortunately, history has shown that this trust is often misplaced. Scandals have erupted where applications sent information without the user's consent, or contained backdoors allowing the vendor (or intelligence agencies) to monitor users. With free software, this kind of concealment is virtually impossible, because with the code being public, dozens of independent pairs of eyes can examine it. As soon as a suspicious line of code appears, the community spots it and flags it. The transparency of free software is a guarantee of trust, unlike opaque proprietary software that may contain hidden features for commercial or surveillance purposes. This objective verifiability is crucial for sensitive applications (think of electronic voting software, encryption tools, or even business tools handling strategic data).

From a business perspective, knowing that the source code can be audited provides assurance. Even though, in practice, few SMBs have the means to inspect all the code they use, the simple fact that the code is accessible to the global community provides a guarantee of quality and security. Vulnerabilities are often detected and fixed faster because any security expert can contribute to the diagnosis. The risk of a malicious feature being introduced via a forced automatic update is also avoided: in free software, every code change is public, traceable, and discussed. This transparency reinforces the ethical standards of the software: an open-source vendor that started betraying its users would betray itself, since users could immediately create an alternative version without those flaws.

In short, transparency translates into a renewed relationship of trust between the user and the software. You are no longer in a relationship of suspicion or resignation ("I'm stuck with this tool I know nothing about; I hope it's not doing anything bad..."). On the contrary, you can take ownership of the software, understand it as a clear element of your information system, and even participate in its improvement if you have the skills or resources. Many corporate CIOs testify that with open source, they sleep better at night: no risk of having a service cut off overnight because they refused to pay for a particular option, no anxiety that a GDPR inspection might uncover an unknown tracker in the app, etc.

Autonomy and flexibility: masters of your own house, all the way

Freedom and transparency lead to a central benefit for users: autonomy. Choosing free software is a bit like switching from being a precarious tenant to owning your own home. You gain technological autonomy with multiple facets:

• Independence from a vendor: You can use free software without being tied to the vendor that created it. For example, you can deploy a Nextcloud server (a file-sharing tool) without ever contacting Nextcloud GmbH if you do not wish to. If that company closes tomorrow, your Nextcloud will continue to work, and you can get support from a third party or the community. This independence translates into greater negotiating power for user businesses: it is no longer "take it or leave it" when facing a proprietary licence contract. With free software, if a service provider no longer suits you, you can switch more easily, since the new provider can take over the same software (no complete solution change required).
• Interoperability and open standards: Free software generally relies on open data formats and public standards. Indeed, without access to the code, it is impossible to have a secret proprietary format—the community documents the formats used, ensuring that your data will not be locked in a silo. This greatly facilitates exchanges between systems and migration when needed. For an SMB, this interoperability means you can make the free software communicate with other tools (accounting, CRM, website...) via open APIs, whereas closed software might have forced you to adopt its entire suite just to communicate internally. This avoids the "snowball effect" where adopting one proprietary software forces you to adopt others from the same vendor due to incompatibility with the rest of the world.
• Business adaptability: Free software often offers far greater customization flexibility. If a feature is missing, you can develop it (or have it developed) since you have access to the inner workings of the program. In practice, there are often community extensions or modules addressing specific needs that supplement the base solution. For example, many free ERPs have community-created plugins for local regulations or niche sectors. The user can thus shape the tool to their use, instead of bending their processes to the limitations of rigid proprietary software. This adaptability is a competitive advantage: your software adapts to your business, not the other way around. For an innovative SMB or one with unique processes, this is often decisive.

By valuing freedom, transparency, and autonomy, the open-source approach tends to give power back to users. We move from a logic of passive consumption to a logic of active participation. This may require an initial investment (in skills, in time to familiarize yourself, etc.), but the medium- and long-term benefits are considerable in terms of avoided costs, risk management, and innovation capacity. This is also why more and more public administrations and private companies are adopting free software: they see it as a way to remain masters of their IT, rather than delegating it entirely to external vendors. This observation ties into the notion of digital sovereignty, which we will now explore further.

Digital sovereignty: taking back control of your data and your tools

When your business data is hosted on servers abroad, in a proprietary application whose inner workings you know nothing about, can you really say you are in control? Digital sovereignty refers to the ability of an organization or community to maintain control over its information systems, its software, and its data, in accordance with its laws and interests. It is a crucial issue in the era of ubiquitous cloud computing and dominant Big Tech. For Quebec SMBs, this covers concrete realities: Where is your customer data stored? Who can access it? Do you depend on a single software vendor whose servers are outside Canada? These are sensitive questions, particularly in light of legal obligations (think of Bill 25 in Quebec or the GDPR in Europe) regarding the protection of personal information.

Free software offers unique answers here to strengthen users' digital sovereignty. On one hand, it does not embed hidden trackers siphoning your data without your knowledge, as we saw earlier. On the other hand, it allows you to self-host your solutions or choose a trusted hosting provider, avoiding closed ecosystems that funnel your data to servers beyond your reach.

"With free software, you have total control over your data: you know where it is stored (on your own servers, or with a trusted hosting provider that you choose)." 💬 ; SMB Guide to Free Software

This quote from the guide illustrates how free software, combined with controlled hosting, ensures that your data stays with you. For example, by using a Nextcloud instance installed on a server in Quebec (at your location or with a local provider), you ensure that your files, emails, calendars, and other collaboration data remain within Canadian legal jurisdiction, subject to Quebec and Canadian laws, and not liable to be extracted by a foreign third party via the Patriot Act or other extraterritorial mechanism. This controlled data localization is increasingly demanded by regulators: the Commission d'accès à l'information du Québec encourages companies to know precisely where the personal data they process transits and resides. With an open-source solution, you decide: no cloud imposed by the software vendor, no obligation to send your data to a Silicon Valley data centre. You can opt for a local sovereign cloud or your own servers.

Beyond location, there is also the question of the collection and resale of personal data. A well-designed free software program generally engages in none of it—at least not without the user's explicit consent. Free software projects are often very respectful of privacy: for example, Mozilla Firefox collects only minimal (and anonymized) telemetry data necessary for its improvement, and does so transparently. Others, such as the search engine Qwant or the web analytics tool Matomo, highlight the fact that they resell no personal data and display no personalized advertising. This ethics is often a selling point for free software: "we are not interested in your data". As Tristan Nitot said, if you wonder "how is this software funded", in the case of free software, it is not funded by your personal data. This financial independence from our sensitive information is a relief for user businesses: they need not fear that their tool shares lists of their customers with anyone, or that analyses of their usage are resold for marketing purposes.

On the contrary, free software solutions often help protect data. First, because they are transparent (you can see what they do, as explained above). Second, because they frequently integrate advanced security tools: end-to-end data encryption, fine-grained permissions management, audit logs to trace access, etc. For example, Nextcloud (which we will detail as a use case) is GDPR-compliant by design and offers advanced encryption options to ensure file confidentiality. By using Matomo instead of Google Analytics, an SMB can analyze its website traffic without placing invasive tracking cookies and without transferring data to Google—a way to be GDPR-friendly and reassure its own customers that their visits are not being exploited.

Finally, choosing free software contributes to a more open and equitable digital ecosystem. Rather than always enriching the same monopolies by ceding control of your data to them, you support an alternative where value is distributed locally (for example through Quebec-based service providers who will help you with open source). This is a point often raised by advocates of digital sovereignty: free software promotes collective independence in addition to individual independence. It allows local talent to take ownership of the technology, modify it, and distribute it. On a territorial scale, this strengthens innovation capacity and reduces dependence on foreign entities.

In summary, the open-source model avoids the collection and commodification of personal data, and it gives SMBs the ability to keep their data under control, both geographically and technically. It is a guarantee of regulatory compliance (respect for data protection laws) and peace of mind. Where Big Tech's "free" services lock you into an unequal exchange (service for data), free software gives you back the keys: your data remains your data. Having explored all these theoretical advantages, let us now turn to two concrete examples of free software that embody these principles and bring real added value to SMBs, right here in Quebec.

Two examples of free software solutions for Quebec SMBs

Nothing beats practical cases to illustrate how the philosophy and strengths of free software translate into business life. Here are two recent free software solutions that are enjoying growing success among Quebec small and medium-sized businesses. We will see why they are useful, what specific advantages they offer, and how their business model works without turning the user into a product.

Nextcloud: your business cloud with full sovereignty

Nextcloud is a free collaborative platform that lets you create your own online workspace, similar to cloud services like Google Drive, Dropbox, Microsoft 365, etc. Except that here, you retain full control. Nextcloud installs on the server of your choice (a server at your premises or a cloud hosting provider in Quebec, for example) and offers your employees a suite of integrated tools: file sharing, Drive-like folder synchronization, collaborative document editing (word processor, spreadsheet via OnlyOffice or Collabora Online), calendar and contact management, instant messaging and video conferencing (Nextcloud Talk module), etc. It is a complete collaborative work suite with the look and user-friendliness of major platform solutions, without the risks.

For an SMB, Nextcloud addresses several contemporary needs: facilitating remote work (in high demand since the pandemic) by offering a shared virtual desktop, improving efficiency by centralizing documents and communications, all while ensuring the confidentiality of exchanges and legal compliance. The company's data remains hosted locally, encrypted if needed, and no longer passes through American servers. This eliminates many concerns related to extraterritorial laws and data breaches. In fact, Nextcloud is GDPR-compliant by design, making it a reassuring choice for privacy-conscious organizations.

Concretely, imagine an industrial design SMB in Montreal: previously, its files (drawings, quotes, reports) were shared haphazardly by email or via a Dropbox account. It was considering using Google's suite for co-editing but feared losing control of its sensitive data (technical plans, etc.) on servers outside Canada. By adopting Nextcloud, it set up its own private cloud: all employees access shared folders via a user-friendly web or mobile interface, collaborate in real time on documents, communicate via the built-in chat, organize internal video calls—all without any data leaking to an unauthorized third party. The company can require that its Nextcloud instance be hosted with a local provider (there are Quebec-based hosting providers specializing in Nextcloud, such as Koumbit in Montreal), ensuring that data remains on Canadian soil. This is digital sovereignty in action: the company sets the rules for where and how its information is stored and protected, without being subject to a tech giant's terms.

From the perspective of advantages and business model: Nextcloud is an open-source project backed by a company (Nextcloud GmbH) and a large community. The software itself is entirely free and open: any SMB can download and install it without licence fees. The vendor earns money by selling optional Enterprise services: for example, 24/7 technical support, advanced monitoring tools (Nextcloud Guard), training, and access to certain applications designed for large deployments (deep Active Directory integration, etc.). It is a classic open core model: 95% of features are free, 5% are offered additionally for those who wish to pay for a pro subscription. Importantly, this does not affect the standard user at all, who already enjoys a complete solution without spending a cent, and above all without being subjected to advertising or data sales—Nextcloud runs no advertising and does not scan your files, in contrast to a Google Drive that feeds the Google ecosystem with your info.

Nextcloud's success speaks for itself: adopted by universities, hospitals, and public administrations in Europe, and by a growing number of private companies. In Quebec, several SMBs and organizations have already made the leap. For example, the Municipality of Lac-Mégantic announced in 2023 that it was using Nextcloud for its document infrastructure to ensure that municipal data stays in Canada and to reduce its dependence on Microsoft tools. Similarly, Canadian federal government agencies are testing Nextcloud as part of hybrid "Cloud First" policies. These examples show that Nextcloud is mature and credible: we are not dealing with a DIY tool, but rather a professional alternative supported by an expert team (including former OwnCloud developers, etc.) and an active international community.

By choosing Nextcloud, a Quebec SMB benefits from a modern, secure, and sovereign collaborative platform. It saves on subscription costs for Microsoft 365 or Google Workspace (since Nextcloud has no per-user licence—you just need to host the solution), while gaining trust: no more fears that internal documents are being analyzed for commercial purposes. The user is clearly no longer a product: they become the client, even the actor, of a solution they control.

Odoo: a free ERP to manage your business without dependency

Odoo is another flagship example of free software championed by SMBs, particularly in Quebec in recent years. It is a modular open-source ERP (Enterprise Resource Planning)—that is, a suite of integrated business management applications covering multiple company needs: sales and customer management (CRM), invoicing and accounting, inventory and purchasing management, project management, human resources, website and e-commerce, marketing, etc. Odoo stands out for its flexibility: each company can install only the modules it needs and customize the tool at will. The Odoo Community version is entirely free and its code is open (LGPL licence), while an Odoo Enterprise version offers additional advanced features and official support for a per-user subscription fee.

Why has Odoo been so successful with SMBs? Because it offers a credible alternative to proprietary all-in-one management software, which is often very expensive and inflexible. In Quebec, many small businesses used a patchwork of solutions: an accounting tool here, a SaaS invoicing tool there, an old Access system to manage inventory, etc. With Odoo, they can unify all these functions in a single coherent system, available in French, compliant with local standards (taxes, etc.), and with no upfront licence fees. According to a study cited by Blue Fox, an Odoo integrator in Montreal, more than 8,200 Quebec SMBs were using Odoo in 2025, and 62% of them do so via the free Community version (with no subscription). This demonstrates the strong appeal of the free software solution in the local business fabric.

Let us take a concrete example to illustrate the advantages: a distribution SMB based in Quebec City had 7 distinct software tools to manage its operations (QuickBooks for accounting, Excel for inventory, HubSpot for CRM, Mailchimp for email campaigns, etc.). In addition to the integration headache between these tools, the cumulative subscriptions cost a fortune. It decided to migrate to Odoo Community: within a year, it was able to replace 7 applications with the equivalent Odoo modules, all integrated into a single platform. Result: $18,000 in annual savings on software subscriptions, a single customer database instead of multiple scattered lists, and much better internal efficiency. Moreover, thanks to the Odoo community, it found free modules to adapt the ERP to certain Quebec-specific requirements (for example, a GST/QST calculation module for invoices, or a Desjardins connection for payments).

From a business model perspective, Odoo is an interesting case: the vendor (a Belgian company) bet on open source to conquer the SMB market worldwide. The free Community version serves as an entry point and already meets the basic needs of thousands of businesses at no cost—hence the high adoption rate. Then, a certain percentage of users upgrade to the paid Enterprise version to get advanced modules (for example, advanced cost accounting, predictive AI for inventory management, etc.) or to benefit from official 24/7 support from Odoo S.A. This freemium model is transparent: you know what is free and what is paid. At no point is the Community user exploited or artificially limited: they have a genuinely functional, scalable solution in hand, which they can even combine with custom developments if needed. The vendor monetizes its added value (support and premium modules) without ever locking in the client. Indeed, an Odoo Enterprise client remains the owner of their local data, and if they stop paying the Enterprise subscription, they keep the Community version without losing their data—only the Enterprise modules become inactive. This respect for the user is notable compared to other ERPs on the market that, once you stop paying, simply cut off your access to the software or your data.

Another strength of Odoo: its community and local ecosystem. In Quebec, an Odoo Quebec community exists, with forums, mutual aid groups, and several local companies (integrators, consultants) capable of implementing Odoo for clients and offering local support. This means an SMB can benefit from the help of Quebec partners, in French, familiar with its context, to deploy the free software solution. This local dynamic is stimulated by the openness of the code: independents train on Odoo Community and offer their services, thereby creating local jobs in the digital sector. According to 2025 figures, 43% of Quebec SMBs on Odoo Community hired freelancers or local firms to customize the ERP to their specific needs, thereby stimulating the regional economy of free software. It is clear: free software fosters a virtuous cycle where everyone wins, from end clients to service providers to the vendor (which benefits from the wide distribution of its product).

In terms of business utility, Odoo brings small businesses integrated management tools worthy of large corporations, without the prohibitive cost of SAP or Oracle ERP. Its modern, modular interface can accompany the SMB's growth: you can start with 2 modules and add more over time, à la carte. Customization is another key advantage: thanks to its open-source architecture, Odoo can be adapted precisely (specific fields, company-specific workflows, etc.), whereas a proprietary ERP would require paying for prohibitively expensive exclusive developments (when possible). This agility is particularly appreciated across various sectors in Quebec: agri-food, cooperatives, tech startups, non-profits... all find a common management foundation, adaptable to their reality.

Finally, on the question of sovereignty and data, Odoo Community can be hosted on a company server or with a Quebec hosting provider, ensuring here too that data (accounting, customer, etc.) remains in Canada and under control. Some SMBs choose Odoo precisely because they want to avoid entrusting their management data to a foreign SaaS. Odoo makes this possible, while remaining easy to use. Moreover, government initiatives encourage migration to this type of tool: for example, the Recyc-Québec subsidy program mentioned by Blue Fox financially helps companies that abandon proprietary software (often obsolete) for more modern solutions like Odoo. This reflects institutional recognition of the value of free software for the competitiveness and digital autonomy of SMBs.

In short, Nextcloud and Odoo perfectly illustrate how "free" does not equal "you are the product" in the world of free software. Nextcloud provides a complete collaborative environment where the user retains control of their data; Odoo offers a powerful management tool without hidden costs or forced dependency. In both cases, the user (whether entrepreneur, CIO, or employee) is at the centre of the value proposition, not a mere monetized variable. These solutions are adopted because they meet concrete needs (working efficiently, managing a business better) while embodying values of trust, freedom of choice, and respect for privacy.

Conclusion: Choosing free software, a winning investment for SMBs

Having reviewed these arguments and examples, a conclusion is clear: no, using free software does not make you "the product". On the contrary, it tends to make you an empowered actor in your own IT, at the controls of your tools rather than subject to a vendor's conditions.

Far from the opaque models where the user serves as a bargaining chip, free software offers a clear pact: it gives you freedoms (to use, modify, and share) and in return it may hope for your voluntary contribution, whether through a donation, feedback, or simply being part of the user community. No underhanded exploitation of your personal data is required to sustain this model. Open-source projects have demonstrated that they can thrive through pooled resources, direct user support, and balanced service offerings. It is an ecosystem where trust and transparency replace surveillance and data capture.

For Quebec SMBs, adopting free software is not just a matter of ethical convictions: it is also a pragmatic choice that can deliver tangible benefits. Reduced licence costs, independence from vendors, compliance with data protection laws, enhanced security, flexibility to evolve... all arguments that resonate in a context where digital technology is both an opportunity and a risk. Without falling into a caricatured anti-proprietary stance (each company must choose tools based on its needs, and some proprietary software may be suitable), it is clear that free software deserves serious consideration in any IT strategy. If only to avoid putting all your eggs in one vendor's basket, or to regain control of critical elements of your software infrastructure.

By choosing FOSS solutions, an SMB also sends a message to its clients and partners: one of trust and respect. Trust, because it relies on proven software, audited by the community, that upholds a certain ethical standard. Respect, because the company itself avoids excessively collecting its customers' data (for example, by using Matomo instead of Google Analytics on its website, or Nextcloud instead of forcing its customers to use Dropbox). Free software can thus become a competitive advantage in terms of image and marketing, in addition to its operational advantages.

In conclusion, far from the old cliché of "free = low quality," the world of free software shows us that "free and open can go hand in hand with quality, sustainability, and ethics". The next time you hear "If it's free, you are the product", you can respond: "Not always! Not when it's free software." The user of free software is not a product—they are a potential contributor, a community member, a client who is respected. For SMBs still hesitating, now is the ideal time to explore these open alternatives that combine savings and autonomy. Adopting an open-source ERP, a free collaborative suite, or any other FOSS tool is not just about saving money: it is investing in a healthier relationship with technology, where your interests as a user align with those of the provider. Ultimately, free software puts the user back at the centre—and isn't that where they should have been all along?

Sources and bibliography

• Standblog; "De l'irrésistible attrait de la gratuité", comments by Tristan Nitot (Mozilla) explaining the difference between the zero cost of free software (zero distribution cost) and that of a proprietary service like Facebook (funded by advertising). September 29, 2015.
• Les Enovateurs; "Si c'est gratuit, c'est toi le produit : comment l'économie numérique engloutit nos données". Article by François Druel and Laura Dufresne analyzing the Big Tech model based on personal data collection and targeted advertising. 2020/2024.
• ZDNet (blog L'esprit libre); "Le logiciel libre contre la surveillance : “nécessaire mais pas suffisant”". Thierry Noisette summarizes the book Surveillance:// by Tristan Nitot; excerpt highlighting that free software funding does not come from collecting personal data (e.g., Dotclear via volunteers, Wikipedia via donations). Updated April 29, 2024.
• ZDNet (blog L'esprit libre); ibid. Excerpt on the transparency of free software as a "guarantee of trust," in contrast to the "black box" of proprietary software that may contain backdoors (commercial or governmental pressures).
• Guide du logiciel libre pour les PME; Abilian (2023). Section 3.1.4 "Les modèles économiques du logiciel libre" listing the main funding sources for free software projects: paid support and services, dual licensing (free/commercial), user donations, crowdfunding, corporate sponsorship, and the "Open Core" model.
• Digiassist; "Le financement des logiciels libres : modèle économique et défis". Blog article (December 16, 2024) describing FOSS funding approaches (donations vs. sponsorship vs. commercial services) and the importance of diversifying these sources for project sustainability.
• Guide du logiciel libre pour les PME; Abilian (2023). Excerpts from section 3.2 on the risks of proprietary software (closed file formats locking the user's data, lack of flexibility, vendor dependency, invisible security flaws, and possible hidden backdoors).
• Guide du logiciel libre pour les PME; Abilian (2023). Passage defining what free software truly is: "not just a matter of free-of-charge, but above all of freedom, control, and sustainability"; a key concept for SMBs.
• Kermeur (blog IE); "Nextcloud : un outil incontournable pour l'intelligence économique" by Frédéric Mouffle. Article (November 29, 2024) presenting Nextcloud as a secure open-source solution for collaborating on sensitive data, while avoiding the risks of proprietary cloud platforms. Emphasizes GDPR compliance and total control over data via self-hosting.
• Nextcloud; Official website, Enterprises page (consulted 2025). Information on Nextcloud's philosophy: the vendor does not require storing data in its cloud, with the option to deploy on-premises or with various partners ("regain their digital sovereignty"). Comparative table of Community vs. Enterprise showing no advertising is present, including in the free version.
• Blue Fox; "Odoo Community vs Enterprise : la solution open source idéale pour les PME québécoises". Blog article (2025) detailing the differences between Odoo Community (free, open source, 30+ base modules) and Odoo Enterprise (paid, advanced modules, support). Provides adoption statistics: 21,038 companies use Odoo worldwide in 2025, including 8,200 Quebec SMBs, and 62% opt for the Community version for its flexibility and zero cost.
• Blue Fox; ibid. Concrete example of a Montreal SMB that replaced 7 SaaS tools with Odoo Community, resulting in $18,000 in annual savings and centralization of its data in a single system.
• Blue Fox; ibid. Advantages of choosing Odoo Community in Quebec: compliance with Bill 25 (local hosting, encrypted data), existence of a local support ecosystem (CELL Québec, integrators, etc.), available subsidies for migrating from proprietary software, and positive economic impact (local freelancers hired for customizations, stimulating the regional digital economy).
• Guide du logiciel libre pour les PME; Abilian (2023). Section 3.3.3 "Souveraineté numérique" defining digital sovereignty for an SMB: "not depending on foreign vendors... ensuring the confidentiality and security of your data... contributing to an open and equitable ecosystem. Free software is a powerful tool for strengthening your digital sovereignty."