"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.