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Perforce has played this game very well by setting up their own category called "fast source control tools".  Speed is their differentiator, and they seem to be having a nice measure of success with this approach.

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But do make sure there are enough of those people.  Every difference defines a category, but not every category matters.  For example, suppose you want to create the number one IDE for programmers who develop enterprise accountiAs citizens of their rights and obligations are? As part of this society, what are your rights? What measures does your government against terrorism? Exploitation, corruption and other illegal and unethical behavior in society, how to fight against? You know about the laws made by your government? What is to the constitution? Various government loans and grants, w

 

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y sell source control tools when CVS is free.  The reason is that "open source" is merely one category in the source control space.  This market has quite a few categories, and the competition across those categories is minimal.  If the customer wants a workflow-based tool, they only look at the tools in that category.  If cross-platform support is critical, the customer isn't paying much attention to the Windows-centric products.

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SourceGear Vault plays in the Windows-centric category of source control tools.  I don't have data to prove it, but I'm pretty sure that right now we are number one with the collection of people who are using SourceSafe and want a painless transition to something better.  We chose our category very specifically. 
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