While multi-national companies have been using open source software for years, North QLD Database Services director Paul Avins said many smaller businesses were yet to realise the advantages of the open source model.

"What makes open source so unique is that the ‘source code' of the software is distributed with the product, which is free to be modified and shared with others," Mr Avins said.

"This means there are no costs for licence fees - the software can be installed on as many computers as desired - and it's more user-friendly and secure due to the community of people who can view the source code and continue to develop and improve the product.

"You are no longer forced to upgrade constantly and - best of all - the software is virtually free from the viruses and worms that are plaguing proprietary systems. This means there's no need for expensive anti virus software or loss of productivity due to virus attacks."

The North Queensland Small Business Development Centre (NQSBDC) and its recently-launched information technology hub, Little Silicon Valley, is getting behind open source, converting its four machines in administration to Open Office - the free equivalent of Microsoft Office.

NQSBDC general manager Brian Arnold said this small change would save the centre up to $3500 in software licence fees alone.

"We are excited about trying the open source alternative, especially when we look at the savings we can make," Mr Arnold said.

"I think all businesses are looking to reduce costs at the moment, so I'd urge them to do what we're doing and step outside their comfort zone - open source is a completely safe and efficient open standards-based alternative to proprietary source-restricted software."

SaferData director John Williams runs his IT business out of Little Silicon Valley and said there were several reasons why open source software was still underutilised by small businesses:

"People are often cautious about change and the unknown, especially when they have to familiarise themselves with something new," Mr Williams said.

"Plus it's something the IT companies want to keep quiet because they'll lose money - when you don't have to worry about proprietary formats and malicious software, you have less downtime and the IT industry is heavily dependant on return business."

The NQSBDC is hosting a free information session on Wednesday, July 1 at 6pm for any business that wants to learn how open source alternatives can save money.

The session will be held in the conference room at 184-188 Vickers Road North, Condon.