Free software is the one thing that not even Microsoft can compete with. The only real answer is that development costs must be paid for by users. The key point here is that what is paid for is not the distribution or use of the software, but its development, and that the development of free software implies that it can be used by anyone. Intermediary organizations can pool these requests, and interested parties can up the ante. Developers can then search through the current postings and bid on development work or work on spec.
Developers can also post their own proposals, which users can then buy into.
Free software can be developed less expensively than closed software products. Even for well paid professional developers, fully underwritten by conscientious users, the cost of free software would be significantly less than the premiums now being paid for empire building. The quality would be better, especially in terms of fitness for use. The best service providers would succeed. Urge large companies and organizations to budget a small fraction of their annual software outlays for proposals.