BOULDER - As the economy bounces along in a state of uncertainty, experts say there is one particular area where companies should look to save money before thinking about cost-cutting alternatives such as layoffs.

That area is technology.

Most companies need it to survive - be it software or hardware - but, until recently, many businesses didn't consider open-source software in which the employer pays nothing.

"What we've seen is an acceleration in that, especially in the last four months," said Kim Weins, senior vice president of products and marketing at Broomfield-based OpenLogic Inc.

Open-source software and other free Web-based applications often serve the same functions as their sometimes-pricey counterparts - but without the price tag.

It's a great option for startups with limited cash as well as large companies looking to cut costs in trying times.

"If they're not (looking at open-source software), they're missing out on an opportunity to save money," Weins said.

Many companies likely use open-source software without most employees knowing it because it functions similarly to paid versions.

OpenOffice.org could replace Microsoft Corp.'s Office suite, Simulat Inc.'s Vyew could replace WebEx Communications Inc.'s conferencing and collaboration software, and GIMP could replace Adobe Systems Inc.'s Photoshop.

In most cases the free open-source software will work well for a business (or individual). But George Morris, Boulder-based Imulus LLC's client services director, said there are occasional compatibility issues.

"A purchased app tends to be a little bit better," he said. Often a paid version will have better support and fewer glitches.

OpenOffice.org, for instance, may not be compatible with the newest edition of Microsoft Word until a developer creates an updated version.

That may cause issues when sending documents between companies, but Morris said there are easy ways around that issue such as making sure a document is compatible with previous issues when saving it.

GIMP likely won't have all the image manipulation bells and whistles as Photoshop. But a company that only needs some of the photo-editing features will be satisfied with the open-source software.

The most well-known and widely used open-source application available is perhaps the Apache Software Foundation's server, Weins said. It provides companies with a free alternative to Microsoft Corp.'s Exchange Server or any other paid server.

With Apache, once a business buys the hardware, the free server is downloaded and, for most employees, forgotten about.

It may not run as smoothly as a paid version, but it's free, and 99.9 percent of the time open-source applications work just as well as paid versions, Morris said.

His company saves thousands of dollars per year because of using free software applications, he said.

"Many of those are very, very appropriate for use in companies," Weins said.

For a company trying to operate on limited funds, even applications with a monthly fee can be costly.

"For a small business, that adds up," Morris said.

And for businesses like Imulus, deciding to stop spending money where it doesn't need to be spent is the first step to finding quality open-source software.

It's important, though, for anyone considering open-source options to evaluate the needs of the company.

"Typically most people start with an open-source policy," Weins said. "There's a whole series, typically, of rules that help put guidelines in place." Guidelines include who can download the software, the source of the download and the type of software downloaded.

Once the guidelines are established, the company should look at which of its applications could most appropriately be swapped for a similar free version.

"Consider open source on at least an equal footing," Weins said. "Evaluate it like you would normal software."

People should also consider how many developers created the open-source application.

"We look at things like the community behind the open-source package," she said.

If only one developer writes the code for a given application and then decides to stop that project, anyone using that application will either have outdated software or won't have quality support available.

Teams of developers throughout write many of the trusted open-source applications. That way, if a couple of developers stop writing code for that application, there are others to pick up the slack.

Businesses should also consider the type of support provided with open-source software. Some applications have support from the developers, some have message boards and other Web-based community spaces where people can post or answer questions, and some don't have any support.

Some applications will have a basic support feature that's free and another paid version where a user can obtain help faster. And some companies, like Weins' OpenLogic, specialize in providing open-source software support.

But not everyone wants to cut costs by trusting free Web-based software.

Sharon King, the Boulder Small Business Development Center's director, said she thinks open-source software acceptance is a generational approach to saving money.

While most of the companies she works with don't use, or don't talk about using, open-source software, she said she thinks more companies, especially small ones, will consider it.

"Any small business is going to try to save money," she said.

Many business owners, though, feel more comfortable with trusted, paid applications that have been around for many years.

But as companies look to cut costs, Weins thinks open-source and free Web-based software will become more prevalent.

"What we see now is there's been a shift," she said.

Many chief information officers and business owners didn't want anything to do with Web-based applications. Now, in the last few years, they've incorporated free software into their operations, Weins said.

Mario Ricci, an Imulus senior programmer, said he thinks open-source acceptance will continue to grow.

"I think it's just going to keep going that direction," Ricci said.

Even once the economy improves, Ricci thinks open-source popularity will continue to increase.

"I think we'll see nothing but more acceptance," he said. All it will take to further expand is time, he said.

Contact writer Ryan Dionne at 303-440-4950 or e-mail rdionne@bcbr.com.