As it happens, I work a lot with companies pursuing open source strategies. I'll share with you what I always tell them -- open source is not magic; you need to create a useful product and build a vibrant community. To do that requires a lot of blocking and tackling -- distributing the product, participating in user forums, lots of evangelism at the local level, and so on.
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It seems like the big competitors have all the advantages, but it's not really true. Open source lets a small company achieve distribution without massive marketing spend. Just look at SugarCRM as an example.
As a mild self-plug, Chapter 2 of my book, Succeeding with Open Source, discusses open source business models. You might find it helpful in focusing your efforts. Good luck.
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