Kuali 2.0. Information Update 10/6/14, updated 10/16/14. Developed by the Kuali Foundation

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1 Kuali 2.0 Information Update 10/6/14, updated 10/16/14 Developed by the Kuali Foundation CONTACT INFORMATION Kuali Foundation: KualiCo:

2 Table of Contents Why KualiCo?... 3 About KualiCo... 3 Company Mission... 3 Corporate Structure... 4 Investment... 5 Revenue... 7 Relationship Between KualiCo and Kuali Foundation... 8 Kuali Foundation... 8 Conflicts of Interest... 8 Kuali Community Involvement... 9 Plans Project Board Decisions Partners Approach Technical Open Source Risks and Mitigation Decisions/Governance KFS HR Coeus OLE Student Rice UXI Ready Kuali 2.0

3 Why KualiCo? For ten years, Kuali has led innovative development of products created by and for universities. These products are used by more than 140 institutions of higher education. In our Community Strategy Sessions this summer, which were attended by over 100 people from many of the member institutions, participants made clear that Kuali must evolve to meet the needs and challenges of its second decade. In particular, four areas need timely change: 1. Much faster delivery of outcomes 2. A complete product suite: Financials, HR, SIS, Research, and Library 3. An amazing user experience 4. A more sustainable model with development costs distributed across more institutions The Strategy Sessions both converged on the need for a Professional Open Source company to move Kuali forward. On August 22, we simultaneously announced to all partners and members our intent to add a Professional Open Source company to the Kuali ecosystem. The invitation to the call and simultaneous announcement enabled all participants in the Kuali Community to hear firsthand from the board at the same time rather than learning second-hand. This document addresses some of the questions that have emerged during the early stages of the transition. About KualiCo Company Mission KualiCo s mission is to provide amazing software that lowers the cost of higher ed administration and improves the learning experience for students, faculty, and staff. KualiCo accomplishes this by creating open source software that is freely available to all.

4 Corporate Structure KualiCo is an independent C Corporation with a board of directors. KualiCo is not a subsidiary of the Kuali Foundation. Capital structure, equity allocations, and business plans are confidential and will not be shared publicly for the same reasons these things are rarely shared by private companies. The board of directors will start out with three members and will move to five or seven over time. Directors will include the CEO and an equal number of educational administrators and outside directors. One of the educational administrators will be appointed by the Kuali Foundation. Outside directors will be compensated with equity. Educational administrators will not be compensated in any way and could only serve as a director with the explicit permission of their university administration with attention to all relevant institutional policies. The independent C Corp structure protects the Kuali Foundation (and other investors) from any obligations or liabilities of the company. This means that if the company does unethical things or incurs debt, investors in the company are completely protected as is the case with almost all forms of corporations. Joel Dehlin is the CEO of KualiCo. Joel has managed very large organizations, very small organizations, and has served as a director on a number of boards. He has worked at Arthur Andersen, Novell, Microsoft, and he was most recently the Chief Technology Officer at Instructure, a successful professional open source company in higher education. Most employees of KualiCo will reside in Salt Lake City. Jobs will be posted through traditional means. KualiCo will offer reasonable compensation with profit sharing to attract the talent needed to support the projects. KualiCo will not solicit employees of customers. Contractual agreements will include standard and mutual non-solicitation agreements, as they do with most vendor and institutional contracts. Occasionally, creative employment engagements will arise when mutually desired. For example, KualiCo might request that a university temporarily assign an employee to work with KualiCo in lieu of payment; or KualiCo might pay a university to enable an employee to work on a project. All of this would be done consistent with each institution s HR policies and via formal agreements. 4 Kuali 2.0

5 Investment KualiCo s only initial equity investor is the Kuali Foundation. The Kuali Foundation will invest up to $2M from the Foundation s cash reserves. This money has historically been invested in CDARs or other investments with a desired return. The expected return on this new investment is much higher, but also carries with it more risk. However, this investment is more closely aligned with the Foundation s interests because it will result in better, faster, and less expensive software for higher education. For its equity investment, the Kuali Foundation will have the right to designate a director on the KualiCo Board of Directors. The Kuali Foundation, through its director, will have an exceptional veto right to block the sale of the company, an IPO of the company, or a change to the open source license. This helps ensure that KualiCo will stay focused on marketplace-winning products and services rather than on flipping the company on Wall Street. The Kuali Foundation receives two distinct types of funds from the community: 1. Project monies (e.g., KFS Partner, Kuali Coeus Functional Council, etc.) are solely directed by project boards comprised of participating partners. They are tracked separately via fund accounting, and they have long been used to obtain commercial services and services from some universities to benefit the project per the wisdom of each project board. Project boards have full control over their current balances and choose how they organize developers, user experience, quality assurance, functional requirements, priorities, etc. 2. Dues for commercial or institutional membership in the Kuali Foundation will remain as the Foundation continues in many of its community roles to convene groups of institutions for projects and other multi-institutional and community needs. Kuali Foundation dues will not be passed through to KualiCo, though future dues could be used to buy services from KualiCo, to purchase additional equity in KualiCo, or other best uses for the community. If an institution desired

6 to withdraw from Kuali membership, it would receive a prorated refund for the year it left. Currently, equity in KualiCo is shared with the Kuali Foundation and with KualiCo employees. Future investment opportunities will be limited to patient capital investors who respect and align with the mission of the company (e.g. educational foundations) and the long-term nature of the investment. KualiCo will be a lean operation and will only seek additional capital investment when there is a strategic opportunity that merits use of additional investment. The Foundation has consulted with tax, accounting, and legal professional services for guidance on this investment strategy and has received confirmation that this approach has no adverse tax implications for the Foundation. The Kuali Foundation is licensing the use of the Kuali name to KualiCo. The Foundation retains ownership of the Kuali name and trademark. The Kuali Foundation is not licensing the Kuali software code for Kuali products to KualiCo as Kuali software is already fully open source and could be used by anyone for any purpose as is already being done today. No license transfer or grant is needed by KualiCo or anyone else. The Kuali Foundation will continue as a separate legal entity, with a 501(c)3 not-for-profit status and an independent board. It will continue to be governed by its own bylaws. Any changes to the Kuali Foundation are subject to the normal review and approval process. As a not a for-profit entity, the Kuali Foundation does not have a valuation and cannot be sold or assessed. The Kuali Foundation publishes its audited financials on its website each year. No person or institution has a financial share or equity stake in the Kuali community just as no person or entity has equity in EDUCAUSE, NACUBO, or Internet2. Members of Kuali have paid dues for the work of the Foundation, and some have funded cash and/or staff as 6 Kuali 2.0

7 partners in open source software projects to be members of Project Boards. Project partners and the entire world have access to that software under the same license forever. They can continue to improve upon, use, or even commercialize that software forever. Kuali Commercial Affiliates are making money from this software today, and institutions have been rewarded through cost avoidance (relative to other options) by using and influencing the open source Kuali Software. Revenue In order to invest in Kuali products, KualiCo requires revenue to hire and direct a pool of top level talent and coordinate with the community. If all project teams fully engage with KualiCo immediately, KualiCo would break even now and become self-sufficient within three years. KualiCo will generate revenue in two ways: 1. Hosting Financials (KFS), Research (Coeus), BCP (Ready), and Student (KS) and eventually HR for schools and universities. Fee structures for hosting have not yet been set, but they will be less expensive than current market rates, and much less expensive for the larger applications like Student, HR and Financials (KFS). 2. Development projects for individual institutions or groups. For future or inprogress project initiatives (like Kuali Student), KualiCo is offering discounts on future hosting to project investors. The Kuali Foundation has not in the past and will not in the future play any role in setting pricing between Project Boards and companies that engage with them, including KualiCo. Project boards choose services and negotiate their own prices just as the Kuali OLE board did in sourcing its programming work with a Kuali Commercial Affiliate. KualiCo will set its own pricing and terms in discussion with Project Boards and institutions. This is already common practice in Kuali as the Project Boards have directed over $15M in commercial engagements over the years.

8 KualiCo has the opportunity to be very competitive. The US educational market is $2B/year. Current products in the marketplace are not meeting the unique needs of higher education. Most competitors are large and focused on the corporate space. Education is a side project. KualiCo is attracting top technical talent that, mixed with the education expertise in the Kuali community, will create relevant, cutting-edge, low-cost software designed for the educational market. Relationship Between KualiCo and Kuali Foundation Kuali Foundation The Kuali Foundation will continue with an independent Board of Directors, an Executive Director, administrative staff, and technical support staff. The Foundation itself has five employees who are either contracted or tendered by universities. The Kuali Foundation will retain ownership of the Kuali trademark. It will play an Assurance role for the community, and hold all KualiCo software, including multi-tenant code, in escrow with Iron Mountain (or another secure provider). It will continue to enable groups of institutions to convene projects and research that they wish to achieve together and to enable meetings of the Kuali community as needed. Conflicts of Interest The Kuali Foundation directors will not be compensated by KualiCo and are subject to the Conflict of Interest terms defined in the Kuali Foundation bylaws and by their individual institutions. Members of the community may contribute code to the Kuali codebase of their own volition. They may be paid by their institution or by KualiCo. These activities are common in open source communities, appropriate, legal, and desirable when done consistent with an institution's policies. 8 Kuali 2.0

9 Kuali Foundation and KualiCo Kuali Community Involvement Many companies such as Github, Wordpress and Datastax create open source software and give it away to customers for free. These companies facilitate a community and also make money on hosting the software, just as KualiCo will. As a founder, the Kuali Foundation has a veto right to block the sale of the company, an IPO of the company or a change to the open source license. Consistent with their local policies, institutions may decide to engage employees with KualiCo in lieu of payments, to help guide the design of the software, or to help train community engineers and support staff. Occasionally, employees of Kuali institutions may desire to consult for KualiCo for a fee. They would do so with full disclosure, on their own

10 time, and according to the rules of the institution, as has always been the practice in the Kuali Community. Many other companies have created similar structures where a company is loosely linked to a foundation. Salesforce, for example, is linked to the Salesforce Foundation which invests in public good projects. This project is certainly unique in that the foundation has structural provisions which give it some control of the company instead of the other way around. Each project board will decide if, when, to what extent, and for what term to engage with KualiCo: A project may choose to continue to operate just as it has in prior years with no engagement with KualiCo. A project may also continue as an autonomous project in the Kuali Foundation and pay for KualiCo or other partner resources to work on a project. KualiCo adds an additional option to this existing Kuali practice. A project may decide to more fully engage with KualiCo, leveraging KualiCo s software development methodologies, product management and architecture in exchange for faster and better outcomes. KualiCo is an open source company and will work together with the community to develop great software. Any good software company involves its customers in decision-making about priorities and functional requirements. KualiCo will involve both its direct customers and also customers who pay indirectly through the Foundation in prioritization, functional requirements gathering, design validation, and user acceptance testing. KualiCo will host and actively participate in forums for discussions about features, functionality, and best practices. Anyone, whether or not they are KualiCo customers, will always have the ability to contribute to Kuali projects. This is typical for open source companies. If a project decided to disband, institutions would have several options (as has always been true for Kuali since its inception): 10 Kuali 2.0

11 1. Continue to support the software on their own 2. Band together with other schools to support one another 3. Engage KualiCo or another partner to support either #1 or #2. KualiCo would step in to help if a project disbanded. It would approach schools individually and figure out a way to support a transition. Plans The Kuali Foundation board of directors has already resolved to create KualiCo and the company has been created. The Kuali Foundation Board will vote to appoint a representative to the corporate board seat. The Foundation has also resolved to use the Affero General Public License 3.0 (AGPL3) as Kuali s preferred license going forward [see Open Source section below]. Each project board will decide if, when, to what extent, and for what term to engage with KualiCo. Project boards could decide to continue on as they currently do, to engage KualiCo in a limited way, or to allow KualiCo to help drive substantial change to the software approach to that product. If a project chooses not to engage KualiCo, KualiCo will have less initial funding to invest in enhancing the product, but will slowly build up those funds over time by hosting the product and enhancing the product for its customers. Choosing to engage with KualiCo in any fashion requires code to be reissued under the AGPL3 license (see Open Source section). KualiCo will choose which market opportunities to pursue and on what terms. Its goal is to engage as soon as possible to help each Kuali project accelerate its project roadmap and priorities. Individual institutions can contact and work with KualiCo immediately to host Kuali products or to provide custom development services (see Revenue section above).

12 KualiCo will be working with the Kuali community to make improvements to current Kuali products. In addition to enhancing the current codebase, KualiCo is beginning the re-write of Kuali products with a modern technology stack. The initial focus will be on Kuali Student and then HR. Complete rewrites of KFS and KC will likely not begin for 3-5 years. KualiCo recognizes the importance of having a coherent plan that is clearly communicated. While new customers are getting exposure to Kuali and becoming interested because of the new press (any PR is good PR), many current members of the community are nervous about the current in between state of Kuali. KCAs have indicated that many schools that are in the process of engaging have stalled as people wait for answers. The current, ambiguous state of projects choosing their path forward is costing opportunities that could otherwise benefit the entire Kuali Community. The longer it takes for project teams to make decisions regarding their strategy to continue with their current pace/outcomes or engage with KualiCo, the greater the risk that we will lose current customer mindshare or turn off customers who might have been interested. KualiCo will work closely with community members to ensure that a plan is in place and communicated as soon as possible to mitigate this uncertainty. Additionally, KualiCo will develop a perpetual communications strategy that focuses on transparency and building and strengthening relationships. Sample KualiCo Communications Strategy Message Audience Medium Company formed, team hired, office location announced Public, Kuali Foundation members, Kuali community, KCAs, Foundation and KualiCo boards, clients Press release, KualiCo blog, Social media, , outreach to influential bloggers and analysts Project Board Strategy Decisions Kuali Foundation members, Kuali community, KCAs, Foundation and KualiCo boards, clients , community posts, conference calls 12 Kuali 2.0

13 Partnership formed, client contract secured Public, Kuali Foundation members, Kuali community, KCAs, Foundation and KualiCo boards, clients Press release, KualiCo blog, Social media, , outreach to influential bloggers and analysts Product in beta Kuali Foundation members, Kuali community, KCAs, clients , community posts, conference calls Project Board Decisions 1. If a project wishes to engage with KualiCo, it should first vote to change its software license to the Affero General Public License V3 (see below). This can be at a certain date or for a next release. Sooner will provide greater clarity to the entire community regarding a project s plans. 2. It should discuss with KualiCo its goals, what needs to go faster, what is / is not working, what roles KualiCo might take on and at what level of resources. These choices will likely differ among the Kuali projects based on their needs. 3. If agreeable, it should reach an agreement for engagement with KualiCo. 4. Monitor and tune the relationship (or cease it if problematic) over time. Partners Kuali Commercial Affiliates will continue to be a very important part of the Kuali ecosystem. KualiCo s business is creating and hosting great software. KualiCo will rely on channel partners to install, configure, and often support hosted customers. Having a software company who is accountable for great software and who is capable of hosting it will give more customers the confidence to come to Kuali. As that happens, the opportunities for KCAs will increase. This approach is common for many software solutions for higher ed and other industries. Approach KualiCo will directly hire product managers, QA professionals, security professionals, interaction designers, engineers, business analysts, and other business experts. In addition, the company will partner with customer institutions and their employees to ensure the

14 software works beautifully and is well-supported. KualiCo won t replace the community; it will augment, enrich and sustain it. KualiCo will prioritize great design, security, stability, scalability, interoperability, performance, and regulatory compliance (ADA, Affordable Care Act, FERPA, etc.). KualiCo will use agile methodologies optimized for remote development. Some Kuali projects are already using these methods and others may wish to implement changes according to their needs and abilities. The KualiCo development team will promote transparency in communications and practices, providing opportunities for the community to learn methodologies that can be applied to their own projects. Virtual kanban boards, daily standups, and retrospectives will help the teams stay aligned and continually optimize process. Pull request code reviews and more automated testing will improve code quality. New features will be released to a hosted beta environment where interested institutions can participate in testing and bug-tracking before the code is released to production for download. Technical KualiCo will help create enhancements, fix bugs, and create new features for Kuali Platform Services (Rice), Financials (KFS) and Research Administration (Coeus) in the current platform (Java) for the next 5-10 years. In 3-5 years, KualiCo will begin re-writing Finance and Research with a more modern, scalable, and flexible software stack. New development has already started for Ready and is expected to start soon for Kuali Student. Features and functions in the current products will be replicated in the new software. KualiCo will host the current single-tenant software for institutions in a cloud platform service (like Amazon or Azure). Non-U.S. installations will be provided for countries where hosting in the United States is not an option. The new native cloud software will expose standard and secure RESTful services for use by other products. These same APIs will be pervasive throughout the application and will be 14 Kuali 2.0

15 used by our web applications and mobile apps. Data from outside products will be consumed in the manner those outside products allow it to be consumed. KualiCo s preference is RESTful services. KualiCo software will be broadly and deeply configurable. Cloud software cannot fit the needs of complex institutions without being highly configurable. KualiCo will accomplish this with rich, out-of-the-box configuration tools instead of through proprietary, expensive programming environments the way many cloud providers do. KualiCo software will always remain available open source for local implementations. The open source version will be a fully functional and fully complete system, ready for adoption for those who wish to host locally. Open Source Current Kuali software is copyrighted by the Kuali Foundation, and it can forever be modified, used by or commercialized by anyone under the Educational Community License 2.0 license. This will not change. The copyrights will not and do not need to be assigned to KualiCo. That code is reused today and mixed with other new code. It simply carries the line as Portion Copyright the Kuali Foundation just as the Kuali code notes many other open source copyrights in Kuali software. The Kuali Foundation is selecting the Affero General Public License v.3 (AGPL3) as the software license for future revisions and recommends that project boards move in this direction. The AGPL3 license ensures a level playing field among all participants in the Kuali ecosystem by compelling that all enhancements to prior AGPL3 software be shared with the community. This condition also makes it practical for KualiCo to invest in the software and know that others must also share back their enhancements to the Kuali applications. The copyright for the AGPL3 software will be copyright KualiCo for the open source distribution that is available to everyone. It would very quickly become untenable to even try to manage multiple copyright lines as various sections of code evolve through the natural enhancement processes of an open source community.

16 Local institutions can continue to make local modifications to the software. Technically, the AGPL3 license requires that these modifications be contributed back to the public repository. AGPL3 is being chosen to compel competitors to contribute their code back. Customers are encouraged to contribute their code changes back, but software companies who use AGPL3 typically do not force customers to do this. KualiCo will help rationalize code additions that are contributed back to the public code repository. KualiCo will replace current annual code consolidation practices, and support customers as the community changes to a rapid release cycle that encourages community committers to merge their changes more frequently. Code will be stored in a public repository on Github. As is true of all open source communities (including present day Kuali), individual developers earn trust to make code commitments by continually making quality commits. In the future, all code will be code reviewed before acceptance. This improves the quality of code and should be done as a standard practice. Hosted AGPL3 versions of the Kuali Application software will be identical to the versions available for download by the world. The one exception is that any new multi-tenant code that will be written by KualiCo (for hosting the Kuali software as a business) will be withheld to give a competitive advantage to KualiCo in hosting Kuali software. Anyone else could write their own multi-tenant hosting software if they wished to engage as a competitive business. Multi-tenancy is not needed for a college or university to download and run the Kuali application software for its own use. Over time, schools will be encouraged to create modifications using product APIs and RESTful services so that upgrades can become seamless. The timing of this depends on when each project chooses to engage fully with Kuali.co. The Kuali Foundation will have veto rights over any change to the open source license. This table may be helpful in understanding the difference between ECL and AGPL3. At the highest level, AGPL3, is viral because it requires anyone who modifies the software to 16 Kuali 2.0

17 contribute modifications back to the public tree. This gives KualiCo an advantage in hosting the software. Open Source Licenses ECL AGPL3 Open Source Initiative Approved Approved Anyone can use for any purpose, modify, distribute, etc. Yes Yes Derivative works Any license or don t share AGPL3 Hosting No effect Triggers Sharing Viral code sharing? No Yes Level Playing Field? No. Code Sharing is Optional Yes. Compels Sharing of Enhancements Today, ANYONE can take all existing Kuali code and redistribute it under any license without any permission from anyone. See Both the current Educational Community License 2.0 and AGPL3 license are approved Open Source licenses by the Open Source Initiative (the Good Housekeeping Seal for licenses).

18 Risks and Mitigation There are inherent risks in both continuing the Kuali projects according to status quo, and in extending opportunities through the formation of KualiCo. The Community Strategy Sessions this summer specifically identified speed and completeness as risks that the current model is not mitigating. Formation of KualiCo addresses these risks, but introduces other risks, which can be mitigated via collective action of the community in ways that will more quickly achieve the outcome objectives of the community. This section addresses some of those risks. Departure. If institutions stop contributing people and money to Kuali projects, the projects will falter and KualiCo will have a harder time getting off the ground. The mitigation is to allow projects to come over at their discretion, but to encourage them to do so as quickly as possible to start to receive some of the benefits. Delivery. If KualiCo is unable to deliver great software in a timely way and for less money then we will have wasted our money. If this happens, KualiCo will not be able to stay in business and cannot sell its assets without approval from the Foundation. In the event that the company goes out of business, the Kuali Foundation would receive the Kuali trademark and the AGPL copyright back to any new code. We believe, however, that KualiCo, working with the community, will be much faster, better, and cheaper than the current community working on its own. Focus. If KualiCo focuses only on small schools, the community will be left on its own. KualiCo is driven by market forces. If large schools, or the project boards, become customers of KualiCo, either through hosting or through support payments, they will receive high quality services from KualiCo just as any customer would. Evil Empire. If KualiCo becomes evil through predatory pricing or ceasing to listen to customers we will be left high and dry. To maximize KualiCo s likelihood of staying aligned with education, several veto privileges are being reserved by the Foundation: sale of the 18 Kuali 2.0

19 company, IPO, change away from open source. These characteristics alone help make KualiCo a very different company than all other higher ed administration software vendors. Alignment. KualiCo will stop listening to customers. If KualiCo stops listening, its software will fail in the marketplace, which includes the present Kuali community. The mitigation is the market. KualiCo is not selling into the corporate market. It is being founded by seasoned software professionals and a highly engaged Kuali community from many colleges and universities. Ceasing to listen to customers would be death to the company. KualiCo will keep listening. Sample KualiCo Risk Assessment Risk Impact Mitigation Departure Reduced pace of development, decreased capacity to deliver on objectives Strongly encourage projects and partners to engage with KualiCo in ways that suit a project s needs and then demonstrate benefit to all for an ongoing engagement. Delivery Inability to sustain company and provide value to the community. Early and frequent engagement and participation with community to immediately offer value and build trust. Focus Loss of capacity to develop products and services with greatest impact to entire community. Early engagement with key stakeholders. Broad evaluation of needs and industry. Strategic partnership with influential institutions aligned with Kuali mission. Evil Empire Loss of trust and therefore, business. Active engagement with community to understand needs, culture and values. Veto power residing in Foundation. Alignment Loss of trust and therefore, business. Active engagement with community to understand needs, culture and values. Active prioritization of higher education market. No outreach to corporate market. Decisions/Governance Project boards will continue making decisions as they do today. To accelerate velocity a project may decide to have KualiCo provide a product manager for the project. The product

20 manager will facilitate prioritization, improve processes and help guide decision-making. Project boards may also decide to have KualiCo add a development manager. A development manager will help ensure that code quality is high, that quality of developers is high and that releases are broken down into more manageable chunks. The best results will come when communities involve a KualiCo product manager and a development manager. Customers will always have a voice. Project boards can continue as they are or choose some level of engagement with KualiCo. Over time, KualiCo will create customer councils which are focused on specific portions of the products. Current customers are welcome to be a part of those. KFS The highest priority right now for KFS is to gather the custom local contributions into the main KFS branch. This will be a significant effort and will take careful coordination and planning. Once this is done, we should set up a system which makes it easy and desirable for custom work to always get contributed to the main branch so that these integrations are not so difficult in the future. In addition, the user experience for KFS needs to be freshened up, especially for those transactions that are targeted to occasional users, such as Purchasing. HR HR is being put on hold for now while KualiCo focuses on Student. Important pieces of HR like the new cloud-based approval engine or the employee object will be developed as part of the new Kuali Student project. Coeus 6.0 should continue on as it is and ship in November as the team has planned. 6.1, 6.2 and 6.3 make sense to work on next, though we should try to break them down into smaller pieces if possible and ship them sooner. KualiCo recommends that we halt and reverse the 20 Kuali 2.0

21 KRAD migration after 6.0. We believe that this will speed us up in both the short and longterm. OLE The Open Library Environment (OLE) is the most recent software application added to the Kuali Foundation suite of products. In August 2014 two institutions went live with OLE 1.5, the University of Chicago and Lehigh University. The remaining eight (8) OLE founding partners including Indiana, Duke, UPenn, Maryland, NC State, Villanova, The Bloomsbury Colleges, and the Florida Partnership are targeted to go live in the next 24 months. OLE Release 2.0 is scheduled for the first quarter of 2015 and will include extensive electronic resources management and Gokb integration. The current OLE code was designed and built for single tenant implementations. As part of the OLE fourth year funding from the Mellon Foundation the OLE consortia team will use the 2.0 release timeframe to identify optimal hosting and configuration solutions for the OLE 2.0 framework. Several libraries expressing interest in OLE have all requested a cloud-based hosted environment. It is likely that KualiCo will not stand up a hosted instance of OLE in its first round of priorities and that OLE will explore multiple commercial affiliates including KualiCo to expedite future software releases and hosted versions. The OLE Project will continue under its current governance structure, development cycle, and roadmap. The Mellon Foundation has endorsed moving the OLE base code to the AGPL3 license and the OLE Board is currently reviewing this license change for a decision at Kuali Days in November. Student KualiCo will soon begin work on a SaaS version of Kuali Student. The current KS code was designed and built to be single tenant. The code must be re-written to allow hosting of multiple customers in a scalable, affordable way. KS 2.0 is being built with a modern technology stack and will be built collaboratively with members of the community. All of the functional analysis today will be leveraged in this new version. The Kuali Student Board is

22 responsible for making the decision about if and when the current community would work with KualiCo on this new project. KS 2.0 will be built for five to six supporting institutions. These schools will be involved in prioritization of these features and each will try to roll out modules incrementally, as they are released. The product will be built to support international needs from the beginning. Curriculum Management will ship in June of KualiCo will begin work on Enrollment after that. Sigma and KualiCo are talking about whether it makes sense to have KualiCo provide product management and engineering for the Student Financial Aid project. Sigma would be involved in providing business expertise to the project. At some point, KualiCo will likely build (or partner for) key modules like degree audit, admissions or advisement, but these will be prioritized by KualiCo and the new founding investors. Great software can be built with configuration options which enable very large and complicated schools to customize skins, workflows, rights, business rules, and other important features. KS 2.0 will be built this way and will also continue to integrate with 3rdparty products. Data is at the heart of student information and so KualiCo will make sure it s easily accessible to end users. KualiCo will build enough analytics and visualizations for the new KS to be awesome. Data should also be exportable into data warehouse tools. Basic reporting tools are also an important piece of analytics. How much analytics and reporting work we do will be determined, with help from the founding members, as the project moves forward. Rice Rice needs to be supported for a very long time. Project dependence on Rice should and likely will start to decrease over time. KualiCo will work with each project as they move forward to determine how to work with Rice. In some cases, projects may stop taking Rice upgrades. In some cases, KualiCo may fork Rice code for individual projects. In some cases, 22 Kuali 2.0

23 KualiCo may rely on the Rice team for updates. If enough projects move to KualiCo, the Rice team may ask KualiCo to help with project management and architecture. UXI Great interaction is part of KualiCo s DNA. If/when the project boards decide to involve KualiCo, KualiCo will advocate improving the user experience across all product lines. The great work done by the UXI team will likely be pivotal to the resultant work. Ready The Kuali Ready project board has decided to APGL3 the Ready code and to engage KualiCo to provide product management, architecture, and development services to this product. The product has over 100 customers and a reasonable revenue stream, but the business is currently below water. KualiCo is writing the software to allow KualiCo to operate the software more cost effectively and to rapidly add additional feature requests.