"...The Web consulting business was great, but it had one problem: limited margins. You could charge only so much for an hour of some consultant's time -- in those days, maybe $200. Some of that went to overhead (say $20) and some to pay the consultant's salary (maybe $70). That leaves you with a mere $110 per hour in gross profit. That's a lot of money, but it paled in comparison with margins in the software industry, in which you can produce additional copies of an application at virtually no cost."
So, if a body-shopping service company is competing against another body-shopping service company, they're facing the same per-employee costs and will have no problems in their market. However, if a body-shopping service company is competing against commercial software for the exact same product and market, commercial software will face lower costs and receive higher revenue for the same work and so will have more resources to bury that competing body-shop every time.
Also, if our company receives a service call, we regard it as a failure of our product to address our customer's needs. If a 'commercial' open source company receives that same call, they regard it as money earned from a support ticket.
Given that difference, which software product would you prefer to run in your business?