I have heard that .NET is not free and that I have to pay Microsoft if I develop a .NET application. Is this true? If so:
What do I have to pay?
.NET is free in the sense that you don't have to pay for it. The framework and the SDK, including the compilers can all be downloaded for no charge from Microsoft. .NET is not free, in the sense that you can not modify it and then re-distribute it like you could an open source framework. You also have to pay if you want to use a commecial IDE like Visual Studio. Although there are express versions that are free.
To build apps with Microsoft .NET, you have to license Windows, which is not free, though it is often built-in to the cost of the PC, and often it is a cost you have already paid!
To run apps with Microsoft .NET, again, you must have a license for Windows.
There is no cost to use the .NET SDK to build an app. There is no cost to deploy an app that uses .NET. There are free tools you can use to build apps. VS Express, emacs, Reflector, SharpDevelop, etc etc. There are also premium for-fee tools. Visual Studio can get very expensive in the Pro versions.
Mono is a version of .NET that runs on Windows and non-Windows platforms.
Developing in .NET is free in terms of cost. The framework and the SDK cost nothing.
The tools you might use to develop a .NET application are not always free. The command line compiler that is included with every .NET framework install is free. The Visual Studio Express editions are free (and can do quite a lot). Visual Studio Standard/Professional/Team Suite is not free, it's an application you need to buy,
Your Academic Alliance versions of Visual Studio (likely Professional) however have specific restrictions. If you develop something using the AA licenced version of Visual Studio, you cannot sell it or use it for commercial purposes, or use it as part of the infrasture of any entity (including your school), until you have purchased a regular licence for the tools you used.
Basically the Academic Alliance licence says you can use the full version of Visual Studio for free, but only for learning or research. If you want to turn your research project into part of a business you'll need to pay for the products you used.
If you are trying to turn your research project into a business startup you might also look at BizSpark. You'll still need to pay your Visual Studio costs (unless you used Express), but Microsoft will cover the costs of all your server licences (Windows Server, Sql Server, etc) in the hopes that your startup will become a successful business (if you are successful after 3 years you need to pay for the tens of thousands of dollars in licences you got for free, if you fail you only lose the $100 enrollment fee)
There is nothing about .NET that requires you to pay.
Often, you will hear that it is not free, but this is referring to the GNU concept of "Free" as in "freedom", not free as in price (or, in their words, .net is free as in beer but not free as in freedom).
You can use your student license to create .net applications. You can also download VS 2008 Express Edition, which is fully functional to develop.
Alternatively, you can develop in .NET using non-Microsoft products. Mono includes a completely separate, free runtime. There are even free IDEs available, such as SharpDevelop.
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Yes. You can use .NET to develop and deploy a website, an application, or anything else. There is nothing in the technology itself that requires payment. The only thing that requires payment is certain tools (such as Visual Studio Professional Edition or the Visual Studio Team Editions). There are lots of ways to develop with .NET for free.
For free ASP.NET development, you have two options. The first is to use the Mono Project's ASP.NET Implementation to run your site. This is completely free, and handles asp.net sites.
However, if you are paying for hosting, your host is paying the licensing fees for Microsoft IIS and the hosting of asp.net sites. The cost to you is included as part of the hosting.
The .net Framework is free to download and develop against. Visual Studio .net costs money except for express edition, which is free, but includes the .net Framework. The cost depends on the flavor.
ASP .net is similar--you're not paying for the framework, you're paying for a copy of Windows with IIS.
You can build commercial applications with you academic Visual Studio. who knows if the app was built in VS pro or VS academic?