This is important. Yes, SugarCRM is less expensive than proprietary solutions but very few actually come to
to Sugar because of price.

More often, customers are interested in the the flexibility provided by  open source. They can change the code, customize more easily, and choose to deploy on-demand or on-site. This is the big reason why Sugar is getting more popular. Customers are tired of being locked in to a proprietary code set or only one deployment model. Sugar gives customers the most modern, flexible CRM application in the market. That is the real driver of customer demand.