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HomeHomeOur CommunityOur CommunityGeneral Discuss...General Discuss...So why is DNN Corp Purchase of OpenDNN a good thing?So why is DNN Corp Purchase of OpenDNN a good thing?
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4/1/2010 4:26 AM
 

It's been really tough to even keep up with this thread in recent days. But I have to admit I have found all of the posts very professional and thoughtful. It was great to see so many of the high profile members of our community weigh in on this discussion. It really helped emphasize that our ecosystem is mature, highly complex, and business focussed. And it was also clear that each stakeholder has a different perspective and a different motivation when it comes to market dynamics - which is a perfectly natural and healthy phenomenon. I personally want to thank everyone who participated in this thread. Although a casual observer may think this thread was a dumping ground for any number of random topics, I think the discussion actually flowed quite naturally from one subject to the next. And the fact that it succeeded in bringing the majority of the sensitive issues out into the open is actually a great thing for communication and transparency.

With a thread this long, there are many questions, comments, and opinions which have been left hanging at this point. And the danger is that unless they are definitively addressed, people will come to their own conclusions and misconceptions which will further exacerbate the problem. So I have made a list of all of the general themes which I believe require further clarification, and will do my best to address them in subsequent posts. Please accept my apology in advance if you are tired of following this thread, and would prefer if it would simply fade away...

So lets get started...

First, I would like to get some facts out into the open. Yes, we raised 2 rounds of venture capital. Yes, we now have investors who have a stake in the company. We have a Board of Directors as well. The Board has representation from each of the venture capital firms who invested in the company ( Vivek Mehra - August Capital, Tim Guleri - Sierra Ventures, and Chris Cooper - UV Partners ). It also has company representation from myself and our CEO, Navin Nagiah. Lastly, it has independent representation from the community - Larry Augustin is an open source visionary and legend. We are in the process of recruiting another independent Board representative as well to fill the 7th seat and complete the team. What is the motivation of the Board? It is simple: to ensure that DotNetNuke grows and prospers. This does not simply mean monetization. The folks on our Board have extensive enterprise software business experience and open source community experience. They fully understand that you need both key ingredients to ensure the longevity, health, and success of a platform. They understand that you can not neglect one at the expense of the other. I can safely say this because in the past year I have sat in heated Board meetings where the investors were far more concerned about community vitality than they were about sales revenue. Hard to believe? For some I guess, but I suppose some people will always prefer a good conspiracy theory to reality. To state that DNN Corp is one Board meeting away from doing something stupid, or that Founders are not decision makers anymore and have no influence over the future of the platform or community, is ludicrous. The Board does not run the company. It provides strategic advice, guidance, and business connections and demands accountability and performance. It trusts and relies upon the Management team and Employees of the company to define the strategy and execute on it.


My comments are my own and are offered WITHOUT PREJUDICE

Shaun Walker
http://www.siliqon.com
 
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4/1/2010 4:57 AM
 

Let's get another thing straight. We are committed to Community Edition. Community Edition is the lifeblood of the DotNetNuke community. For the vast majority it is their first experience with the platform, and for many it will be the version they push into production. As a result, it is our duty to ensure the Community Edition experience is impressive. But how do you make your entry level product impressive? On one hand you need to keep adding business value and innovation so that the product remains relevant and modern and does not stagnate in the ever evolving IT world. On the other hand you want to keep it simple and not confuse people with too many features which cater to edge cases that typical users will likely never encounter. So in general, you want to ensure that the product does a stellar job supplying the minimum functionality which the vast majority of users require.

In the past, I admit that we did not always adhere to this model. We increased the functionality of Community Edition in a variety of areas which made some people happy but in general made it more complex and negatively impacted the experience for the average user. If we want to dramatically increase adoption of the DotNetNuke platform ( which I believe is desirable for everyone) we need to focus on simplicity in Community Edition. So the explanation of why features are sometimes withheld from Community Edition is not as simple as "because they want to sell Professional Edition". In fact, there are other underlying strategic aspects to consider.

On a related note, as DotNetNuke has matured, it has become obvious that the development of key features requires dedicated resources and significant time and effort. In the past much of this work was performed by the Founders and included in Community Edition for free. As most people could guess, this was not a viable business model. And the fact that we raised venture capital does not excuse us from behaving like a responsible business. In fact, quite the opposite is true. We need to utilize the funds wisely. So when we undertake significant development efforts - especially for features which are typically reserved for more advanced business scenarios, it is likely that we may introduce the functionality through Professional Edition. This provides the opportunity to recoup our investment. And it does not mean that the feature will never exist in Community Edition. On a case by case basis we will choose to "backport" features from Professional Edition to Community Edition.

Lastly, it is important to recognize the ratio of Community Edition installations versus Professional Edition installations. Based on our estimates, Professional Edition installations currently represent less than 5% of the total installations which occur worldwide on a monthly basis. So clearly, users of the Community Edition represent a very large market. Many of these users will eventually run into situations where they desire additional functionality. This is where the extensibility model of DotNetNuke becomes so valuable. Users can easily obtain more advanced functionality by purchasing a module or skin. Conversely, they may decide that Professional Edition is a more appropriate solution for their business; however, even in this scenario it is likely that they will purchase additional third party extensions. DotNetNuke Professional will never satisfy 100% of the needs of all customers. As a result, there will always be opportunities for enterprising developers to provide specialized solutions.


My comments are my own and are offered WITHOUT PREJUDICE

Shaun Walker
http://www.siliqon.com
 
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4/1/2010 5:37 AM
 

Shaun, thank you for taking (again) the lead on this issue. I am not a high profile member of DNN community (just a member :) ) but my company is built around the platform since 2004 and as a custom module developer and system integrator DNN is vital to my business as you can imagine. I am sure there are many many like me that are anxious to here what you say.
I don't think any one of the people taking part of this thread and the many that just read it will get tired of the issue. I am sure all are encouraging you to keep on this. I personally find your stepping in and trying to clear the fog and filling the lack of information as a serious and responsible act.
Thank you.
Yehuda


Yehuda Tiram
AtarimTR
AtarimTR
972-2-5700114   |   972-54-4525492   |    http://www.atarimtr.co.il
 
New Post
4/1/2010 5:59 AM
 

 I would also like to thank Shaun Walker and the other representatives from the corporation for taking this seriously.

After reading the official information my impression is that the future of the DotNetNuke CE edition really boils down to the commitment of the "founding fathers" and their ability to enforce that commitment to the other stakeholders (investors and paying customers) in the future. Keeping the CE edition was a critilcal business decision with the inception of the PE version. It would have failed otherwise. Keeping the CE edition is still a sound business decision. But as the PE customer base grows in strength, keeping the CE around will reach it's point of diminishing returns. Thats when we really need to trust your commitment and your ability to enforce it. Based on your 5% conversion factor, a forced upgrade of all the about 500.000 sites could yield as much as 50 million dollars of annual revenue if done properly. With time, it will require some strength to keep your promises. I just wish your recent business decisions, like the one that started this thread, would comply better to your stated commitment. 

My reasons for commiting my sites and my customers sites to the DotNetNuke framework are stated on this page:

www.dotnetnuke.com/About/Licensingand... 

Can Shaun Walker or someone else representing the corporation confirm that the information on the Licensing and Trademarks page are still valid for the DotNetNuke CE edition and will be for the foreseeable future? 

     

 
New Post
4/1/2010 12:06 PM
 

"Based on your 5% conversion factor, a forced upgrade of all the about 500.000 sites could yield as much as 50 million dollars of annual revenue if done properly."

I appreciate the desire to do some financial forecasting; however, I need to point out where the assumptions are wrong. Simply stated, a "forced" upgrade is not possible. It is not possible from a technical perspective as this is not a hosted model - people run our software in their own environments. It is not possible from a legal perspective because the software is licensed under a BSD license which gives the end user the full rights utilize the software as they wish. And to add further clarification, a conversion factor of less than 5% is normal for every open source software company who also offers a commercial version ( ie. JBOSS, mySQL, stc... ). The fact is, the majority of people will not pay regardless of the price point or extra benefits being offered. This may seem shocking to some, but there is plenty of evidence to support this phenomenon ( and we have certainly witnessed it ourselves over the years ).

In regards to the question on Licensing, one of our traditional project values is that "our open source license is our key to adoption and growth". The Community Edition will always be available under the BSD license. It is the backbone upon which this ecosystem was built. And it has been essential in terms of gaining business acceptance in many large scale organizations. Our stance on licensing has been reiterated time and again over the past 8 years through words and actions, but the doubt still continues to surface from time to time. I am not sure how we could make this any more clear.

Which leads us to the Telerik licensing question raised earlier. When I approached Telerik last year to pursue an OEM relationship, I had specific goals in mind. We wanted a toolset which would allow us to modernize the DotNetNuke user experience. And it was important that the toolset was not only available in Professional Edition, it needed to be available to everyone in the ecosystem. Now Telerik does not offer its tools under an open source license, so we spent considerable time and money to ensure that that OEM license would not violate the freedoms of our users. Telerik was more than willing to accomodate us, and only had a couple specific limitations which they wanted to include. One limitation was that the Telerik components could only be used within DotNetNuke - they wanted to avoid a situation where a developer could utilize their controls in a custom ASP.NET application. The other restriction was in regards to Community Edition developer usage; since the vitality of their business is based on selling licenses to developers, they wanted to restrict Community Edition developers from using their controls "natively". This restriction contradicts our earlier stated goal of ensuring the controls are available to everyone in the ecosystem. So to mitigate this restriction, we negotiated an alternative usage scenario where DNN Corp is allowed to build "wrappers" around the Telerik controls and expose them through the DotNetNuke API. This enables Community Edition developers to utilize a subset of the Telerik control functionality without breaking the license agreement. Unfortunately, when we introduced the Telerik controls in version 5.2, we did not have sufficient time to create wrappers and as a result, the benefit was rather limited. We recently hired a full-time UI/UX specialist who is going to be focussed on this area - so the story should become much better soon.

To clarify another question related to Telerik in this thread, when we established the OEM relationship it was critical that we did not affect the open source freedoms which the project was founded upon. As a result, Navin and I worked extensively with our attorney ( Mark Radcliffe from DLA Piper, a recognized open source intellectual property industry expert ) to ensure the agreement protected the interests of the community. The end result was an OEM agreement which retained the key tenets of open source. What I mean is that it is still possible for our users to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the DotNetNuke software. Telerik is embedded as a licensed component ( much like FCKEditor or SharpZipLib ) with the only restriction being that the Telerik controls can not be removed from the distribution and used independently. Now it is fairly normal for licensing agreements to be complex artifacts; and it is also normal for developers to mistakenly think that they have the necessary level of legal expertise to analyze these agreements and come to educated conclusions. I have been guilty of this myself in the past, but I have learned over the years that it is best to leave intellectual property matters in the hands of professionals who specialize in these matters. I have total confidence in our legal counsel to ensure the freedoms of the community are preserved.


My comments are my own and are offered WITHOUT PREJUDICE

Shaun Walker
http://www.siliqon.com
 
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