There is a nice article over at NewsForge called Making a Living Saving the Government Money about how a small company, Devis are making a modest profit developing large scale solutions for the US government based almost entirely on Open Source applications.
Peter Gallagher is president of devIS (AKA Development Infostructure), a Virginia-based company that designs, develops, hosts, and operates large-scale custom Internet applications for government agencies and private consultants. He says devIS saves its clients a minimum of $100,000 per contract by using Open Source Software. Gallagher also claims none of the Web sites or Web applications devIS has produced have ever been hacked. And here’s the real clincher: devIS makes money.
The devIS business model is one Open Source and Free Software proponents have been advocating for years, namely selling software services instead of selling software products.