Abstract
This paper examines differences of using proprietary software and free software in electronic governance from an economic point of view. The paper identifies and highlights key areas in network economy, where free and open source software can drastically cut costs both short-term and long-term, if used instead of proprietary software.The research examines both governmental use and development of software and proposes a way for governments to manage free and open source software projects in order to lower costs for all agencies. The aforementioned policy is used as a basis for the research and its proposals.
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