On Friday the Kuali Foundation announced the creation of a new for-profit entity to be led by the former CTO of Instructure, Joel Dehlin. Jeff Young at the Chronicle described the change:
Ten years ago, a group of universities started a collaborative software project touted as an alternative to commercial software companies, which were criticized as too costly. On Friday the project’s leaders made a surprising announcement: that it would essentially become a commercial entity. [snip]
The Kuali Foundation will continue to exist as a non-profit, but it will be an investor in a new commercial entity to back the Kuali software development. Leaders insisted that they would maintain the values of the project despite creating the kind of organization that they once criticized. For one thing, the source software will remain free and open, but the company will sell services, like software hosting. On Friday the group issued an FAQ with details about the change.
As Carl Straumsheim put it at Inside Higher Ed:
The Kuali Foundation, after a decade of fighting commercial software vendors as a community source initiative, will launch a commercial company to better fight… commercial software vendors.
Despite the positioning that this change is about innovating into the next decade, there is much more to this change than might be apparent on the surface. The creation of a for-profit entity to “lead the development and ongoing support” and to enable “an additional path for investment to accelerate existing and create new Kuali products“ fundamentally moves Kuali away from the community source model. Member institutions will no longer have voting rights for Kuali projects but will instead be able to “sit on customer councils and will give feedback about design and priority”. Given such a transformative change to the underlying model, there are some big questions to address.
Financial Needs
Kuali, being a non-profit foundation, has its financial records available online, and the tax reporting form 990s are easily obtained through sites such as GuideStar. Furthermore, instructional media + magic (im+m) has a public eLibrary where they have shared Kuali documentation over the years. ((Disclosure: Jim Farmer from im+m has been a guest blogger at e-Literate for many years.)) There does not appear to be a smoking gun found in the financials to directly explain the need for such a significant change, but there are hints of issues that provide some insight. (more…)