Hello,

As you may have noticed, we just release version 5.0 of Open ERP. This mail
explains all the changes that are related to this new version.

About the Software
------------------

I suppose you already know most of the changes that have been applied in
the Open ERP software. This new version focused on the following elements:
* ACCESSIBILITY & EASE OF USE : the version comes with tooltips on most
  fields, a complete documentation (1500 pages) linked with contextual
  help, configuration wizards, pre-configured access-rights, reviewed
  interfaces, simple/extended mode. This should allow people to start
  working with Open ERP much more easily.
* BETTER INTERFACE: especially with the web client with the drag&drop
  calendar, the gantt charts, the process view, reviewed look, better
  dashboards, etc.
* TOOLS FOR INTEGRATORS: to allow you to integrate Open ERP by doing
  parametrization, not develoment: screen/object designer, server
  actions, workflow editor, etc.
* MATURITY: about 1200 bugs have been fixed within the past 5 months.

And, of course lots of new modules and features.

About the marketing
-------------------

We splitted the (allinone) Open ERP website into two websites, to target
different kind of users:
* Open ERP : for customers, to promote a product or a solution. You will
  find on this website: features, online demonstration, success stories,
  services offers.
* Open Object : for the community, to organise collaborative efforts.
  New things on this website: irc channel, extensive launchpad use,
  technical keypoints.

These websites are all related to the same code/software. We can say that:
* Open ERP is a product
* Open Object is a project
* On Demand is a service

We think it's important to have a different communication according to the 
target market. Customers will want to see advantages, ROI, services offers, 
success stories whereas community will want to see forum, IRC, current bugs, 
branches of development, ...

We also launched new services:
* OpenERP.tv : a place for the community where you can upload your
  screencasts You can post your blog on blip.tv with the tag openerp,
  and we will validate it to integrate in the screencasts section.
* Evaluation-Matrix.com : A pragmatic and collaborative comparison
  amongst most advanced ERP on the market.
* Doc.OpenERP.com : a 1500 pages of documentation with the following
  books available: enterprise management (The Open ERP book), the
  community book, the installation book, the BI book, the modules list,
  the features list.

We splitted the planet into 2 planet, the goal is to allow every partner
to contribute on the openobject planet: technical issues, new modules, 
customers, announce of events, ... The communication for the Open ERP planet 
will be done by our marketing team by reviewing, improving and filtering others 
contents.

If you want to send your own announce to our news section, please do the
following:
1. Create a blog where you will post your announce (or a website having
  rss available)
2. Send a link to your blog or rss by email to Philippe ([email protected])
3. Our news system will automatically fetch your announces on your blog,
   filtering on posts that have the openobject keyword.

We request only english messages on our news. If you want to announce in
another language, please create 2 posts, and tag with 'openobject', only
the english message.

About the Sales
---------------

As to provide you more prospects, we worked a lot on an improved lead 
generation program. You can get the available leads on the portal (about 2000 
new leads per month). These leads come from the following sources:
* From the form on our website
* From the poll at installation of the software
* From email sent to [email protected]
We apply a semi-manually filter on emails, so that you don't have spam in the 
portal, but only real leads.


About the partnership
---------------------

The partnership contract has been changed to be more reliable. We kept the same 
ideas than the preceeding contract but improved on some points, mainly the 
point (units) system.

We simplifed the unit system to be much more easy and understandable. We got 
inspired by the ezPublish model. Now, units are computed based on all services 
you resell to your customer (or buy yourself), making a certified module, 
maintenance contracts, trainings, etc. This points system is the reflect on 
your activity on Open ERP:
* reselled maintenance contract => number of customers
* quality certified modules => number of good modules published
* trainings & support => your knowledge on Open ERP

This new contract will take effect at the end of your current contract. Please 
note that we will be more strict with the partner level: sliver/gold. We will 
review the partnership level every 3 months, based on your real activity. So, 
people may increse their level/decrease their level according to their real 
activity on Open ERP in 6 months. Our goal is to be very fair and apply exactly 
the same rule to everyone.

The new rule to be starter/silver/gold/platinium are:
Platinium : 5% of the top partners having the most points
Gold : 15% of the top partners having the most points
Silver : partners having more than 1500 points
Starter : new partners
It's better because it scale efficiently with the growth of the partner 
network. We also re-evaluate partners level once every months.

In this situation, the partner level is less related to the amount the partner 
purchase but more to the activity and sales the partner generates.

The commission on all our products (maintenance, trainings, ...) has changed 
too:
* before it was 20% on all our products
* we increased to 25% splitted like this: 15% direct discount, 10% to be reused 
to buy others products (maintenance contracts, support, trainings, ...)

The commission is applied on direct purchases, or on purchases made by your 
customer. If one of your customer buys directly the service on our online shop, 
contact us to say it's your customer and we will pay you the commission at the 
end of the month.


About the module certification
------------------------------

In version 4.2, we had lots of troubles due to the quality of the modules 
published. Some where not fully finnished (proof of concepts), some where made 
by contributors and not maintained efficiently, ... It was a bad image for the 
product. We also get requests from customers and partners to get evaluation and 
feedback on their own modules.

The certification is based on a procedure of 150 technical and functionnal 
tests and reviewed by 2 people from our quality team. After the certification:
* We promote your work through a news on Open ERP
* We tag your module as quality certified in the module list
* We send you technical and functionnal feedback
* We include it in maintenance contracts (for corporate contracts) or send you 
a yearly proposition for the maintenance of the module (migration to new 
versions, bugfixing, ...) It allows you to have a professional review on the 
quality of a module to avoid:

* Complexities to migrate the module for futur version of Open ERP,
* Having a module that do not fits Open ERP standards and is not used by the 
community,
* Discovering bugs and problems once in production,
* Queries that slows down the user interface when going on large production 
environment, etc.

Once the quality of a module is certified, we offer second level maintenance 
contracts on this module to ensure module lifecycle during years, migration and 
bugfix guarantees.

The advantage of using certified modules are:

* They are bugfree and the editor provides bugfix guarantee contracts,
* You will not have migrations problems for next versions of Open ERP,
* They are scallable and have been tested in production environments,
* We made stress tests to check they run with big databases,
* They are used by the community, so they will evolve and others will
  contribute.

The price to certify a module is 800 EUR, but we provide discounts for big 
projects, having lots of modules.  Note that you also have 25% discount on 
modules certification.

Of course, that's not something you should buy. It's better to resell it
to the customer as a quality label. At the end of the certification, we provide 
you two documents: the quality certificate (for the customer) the detailed 
feedback (for you).

About the maintenance
---------------------

We setup a second level maintenance contract, that can fit your first level 
maintenance/support contract you provide to the customer. It's a service 
contract (not required to use Open ERP) you should resell to the customer to 
get some guarantee and to work on a professional way. In these editions, we 
provide:

* bugfixes guarantee : according to the contract level, we guarantee a delay to 
manage a bug. Within this delay, we assigned a full time developper on this bug 
that will fix it in an average of 4 hours. On previous versions of Open ERP the 
bugfix was at the charge of the partner (from your support hours in your 
partner contract). By doing this, you get an unlimitted and free bugfix, paid 
by the customer and not you. We setup an automated migration system within the 
server that can automatically download new versions and apply fixes.

* Life cycle guarantee : with these new editions, we are able to provide up to 
5 years of maintenance on a particular version of Open ERP. It's a
guarantee for the customer they will not have to migrate at each new version. 
(nobody likes to be forced to migrate often a working ERP system)

* Security and bugs alerts : we changed all our internal procedure to be able 
to report to customers (or partners, you decide) new security alerts and bugs. 
We send the report about the security issue or bug with the fix of the problem. 
Our service stops here. The application of the patch or the training of the 
customer if things change should be in your support contract. In this way, the 
maintenance contract may (or not, you choose) generate more work to be invoiced 
to the cutomer to apply, test and train on these changes.

* Automatic Migrations: the maintenance contract include a guarantee on the 
automatic migrations from one stable version to another stable version. It 
already works with current 4.2 versions. We provide you the automatic migration 
system and the service to help you to migrate if needed.

Please note that these editions are only services. The Open ERP code used is 
exactly the same between all editions or for the community. We will always 
continue to use bazaar and launchpad to push what we do to the community.

But I think we can not achieve these 4 services and guarantees without a
service contract. The big change with version 5, is that this effort
(migration, bugfixing, life cycle guarantees) is not anymore at the charge of 
the partner but the end-users.

You can compare the different contracts here:
http://openerp.com/index.php?option=com_content&id=8

Note that you also have 25% discount of maintenance contract.

More explanation
================

In reaction to the post of Ferdinand:
> So I suggest to find a bettter term for "No guarantee" > "Supported"

A 'guarantee' is a service ! We can not offer 'support' for free, it's not 
reliable and scalable ! It does not mean we do not provide the code or bugfix, 
it's just mean if you want a guarantee you need a maintenance contract. Because 
a guarantee is a service. I want to provide everything for free, that's my 
business and my passion but I consider that a service must be paid. No matter 
of the form of the service. But, things that have been achieved with this 
service are pushed to the open source community for free, once it's done.

We used to work like this for the code, it will be the same for the bugfixes, 
the maintenance and the migrations.

I underdand it's a big change and people do not like the changes. But note that 
last year, partners where complaining of the invert. Before this, bugfixes 
requested in an emergency by partners had to be charged in the partner 
contract. So the reaction was, why should the partner pay to bugfix something.

This maintenace contract set the basis of a strong model where:
* the partner do not have anything to pay (it's the customer that purchase the 
maintenance)
* the editor can organise himself and offer a strong and guaranteed quality of 
services for the different maintenance aspects, because he is paid for this.

On v4.2, the more we had bugs, the more profit was generated for the editor, 
because the partners had to pay per request. (of course, it was not our goal) 
It was good for the editor but not for the product, nor the partner. In this 
v5, with maintenance contracts, the more bugs we have, the more it costs to the 
editor. Because we sell fixed price contracts, no matter of the number of bugs. 
Trust me, we will organise ourself to provide VERY good code and quality of 
service. And that's very good for the product. More over, now 
bugs/migrations/security
issues will not anything to the partner, so you can control your costs more 
easily on customers projects.

SO, the goals of these changes and the version 5 is:

IT'S TIME TO BE MORE PROFESSIONAL AND RELY ON A STRONG BUSINESS MODEL THAT WILL 
INCREASE THE QUALITY OF THE PRODUCT AND THE SERVICE, WHILE SUSTAINING THE 
GROWTH FOR A BETTER PRODUCT TO THE COMMUNITY.

I have 40 people working on R&D, maintenance, bugfix and partners services. 
Trust me, the yearly 1950 EUR we invoice to partners is ridiculously low 
according to our editors's charges. Currently, the company win his money on 
customers projects and loosing lots of money on the editor area. Fortunatly, we 
are also integrator !

> * we do not migrate to a product which does not support
> ** UTF-8 printing (nobody else will migrate and even use V5)
> ** UTF-8 document management

As I said, you can not ask more and more for free to the editor. Most of the 
time we succeed to provide what partners and the community requests, and we 
will continue. But you have to understand we all worked by nigth to achieve 
these needs and it's not reliable in the long term. We need a strong busines 
model.

You can not request more and more new open source features/modules, while 
asking free maintenance. It's not reliable nor scalable at all. The solution we 
proposed is very good for everyone:
* The partner resell and, thus, don't pay for the service (+get a commission)
* The customer get the guarantee and quality of services he need
* The editor can start consolidating on quality of services and maintance 
because he is paid for this.
* The result of all of this will be pushed to the community to sustain the 
growth of the product and his quality.

Otherwise, it's not scalable, nor reliable. We have 15 new modules per month,
the maintenance of all these modules become more and more complex. Trust me,
it's really complex to achieve to growth we made (in feature and in quality),
we have 40 very good people behing this.

That's why I propose a big change in the business model. If we want to
sustain the growth and the quality of the product, we need:
* A win-win relationship between partners and the editor
* Contracts that allow us to provide unlimitted maintenance & bugfixes
* Push everything that have been paid by the customers to the community

I think that these new propositions, for v5, fit perfectly into these
needs.

> The reaction of my most important - and meanwhile angry - 4.2 client
> * you call this free?
> * what are they going to charge next year ?
> * if ever we migrate we might fund an open source module for migration.

1. Yes, it's free like in "free software", not like in "free beer".
2. Probably the same amount, or less if we have more customer to divide the 
maintenance costs on. The great advantage of open source is that the customer 
manage the offer. If the offer is too expensive, he can support it himself. 
Check at the competitors (Compiere / OpenBravo), they charge 8000 € per year 
for this service. It's not expensive at all, we have 350 modules to maintain 
and a fast evolution of the product to control.

I consider the "migration guarantee" as a service. Migrations are very complex 
to manage. We worked 5 months to manage automated migrations and the result is 
quite good; we automated most of our databases. But I also know that we need to 
provide a service for this because, either if the scripts are very strong, all 
databases are different and we may encounter difficulties on some installations.

If we release for free, then people may complain it doesn't work in all cases. 
If we don't sell maintenance, I can not work on a specific customer request. We 
want to offer quality services and code/product. For maintenance and migration, 
the only possibility is to assign full time developpers on this that will work 
per customer requests.

> The reaction of my most important - and meanwhile angry - 4.2 client

If you have a problem with your customer, please understand that we don't 
guaranteed nor sold any maintenance nor support contract to your customer. You 
probably did it, not me !

I understand it's a very confusing situation for you. But the new maintenance 
contract have been setup to avoid this in the future. What we did with this V5 
is to avoid such situation and provide the service you need to take everything 
at our charge, spreading the cost to the global number of customers.

> * we do not migrate to a product which does not support
> ** UTF-8 printing (nobody else will migrate and even use V5)
> ** UTF-8 document management

I do not know any other (proprietary or open source) ERP that support document 
management (or either UTF8 document management) !

> Automated migrations must be available to the community

I fully agree with you ! Migrations must be available to the community.

But I also consider migrations guarantee as a service and a big cost to
GUARANTEE this in the futur. SO I thought about a mix to satisfy customers 
(that need guarantee, quality and direct service) and the community that want 
to migrate for free.

That's why I think migrations should be seen like the 'Shared Funding Projects':
* Those that needs a professional environment, a guarantee on the quality of 
service and code and the code directly available on new version, have to 
purchase the maintenance contract.
* When the maintenances contracts reimbursed the R&D costs of these migrations, 
we will publish them as open source for the community.

So, I estimated that we will be able to release the migration scripts with 3 to 
8 months, according to the success of the editions. If it takes more than 8 
months, I will take the costs at my charge and distribute everything online for 
free. So that the community have a 'guarantee' on waiting maximum 8 months.

This remark is only for migrations scripts. For all the rest (new developments, 
bugfixes, ...) we push what we did directly on launcphad.


Discussion
----------

Of course, I am open to any discussion and/or proposition. But, don't forget 
that if we need a product that growth fastly (in quality and in features), you 
need to satisfy:
* The partners: that create the market, promote the product and generate the 
services offers,
* The customers: that must have some guarantees and are willing to pay for this,
* The community: that must have everything for free but do not required 
services,
* The editor: that guarantee the maintenance, the quality and sustain the 
growth of the product.

I think my proposition will satisfy everyone, so that v5 will become a 
skyrocket !

-- 
Fabien Pinckaers
CEO Tiny - OpenERP Editor
Chaussée de Namur 40
B-1367 Grand-Rosière
Belgium
Phone: +32.81.81.37.00
Fax: +32.81.73.35.01
Web: http://openerp.com

Great Achievements Start With Tiny Investments
  -- Marty, 2005




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http://www.openobject.com/forum/viewtopic.php?p=29699#29699

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