(FORTUNE Small Business) – While Linux server technology has powered enterprises for nearly a decade, open-source desktop applications have been slower to catch on. SugarCRM, based in Cupertino, Calif., is the first open-source player in the $11 billion customer-relationship-management (CRM) market. Although anyone can download SugarCRM's basic code free, the application is not particularly easy to install or configure. Luckily SugarCRM also sells packaged solutions for companies without Linux-crazed über-geeks on staff.

Ferrell Cos., a firm based in Lakewood, Colo., that provides technology services to the construction industry, recently bought Sugar Professional for its sales team. Instead of paying $12,000 a year for SMB market leader Salesforce.com, Ferrell shells out roughly $1,100 a year for five SugarCRM licenses. The software comes in hosted and nonhosted versions: Both include lead tracking, contact management, market opportunity analysis, and other sales tasks. SugarCRM has helped Ferrell close 55 deals so far this year--up from 20 in 2004. Revenues grew from about $2.5 million to $3.5 million in the same period.

"Salesforce.com is a more polished product," says Jerad Ferrell, 27, executive VP at Ferrell. "But with SugarCRM, I get the core features at a fraction of the cost."