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I'm looking for some comprehensive and free web solution that can be used within a SMB related to project management and team collaboration in context with software dev. Anyone has any thoughts on that?

p.s. please don't post web solutions that are hosted external servers like basecamp we want to host it in house.

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You should check out Mound. It is a free and open source Development Management Software solution. It doesn't have a particularly extensive featureset, but includes most of the core features you might need.

Although i have no experience personally with it, i know people who have used it and find it extremely useful.

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