Selling Sugar CE Hosting/Support. Can you?

[alornmage]

I've looked through a lot of the forums here these last couple days and I THINK the answer is yes, but I'd like someone to point me in the right direction so I can see it for myself in writing.

I've tweaked a Sugar CE installation for a specific industry. It's handling lead management, contact, appointments, etc. Now that I've tweaked it and know how to copy/deploy it rapidly to a new server, I'm in the position to be able to sell this to a group of customers that are already interested. I just want to know that I'm allowed to do this, considering the GPL licensing aspects of CE.

Basically I would charge a setup fee to deploy the installation to the server for the customer, and then I charge a monthly fee for supporting it and backing it up. Is there any problem with doing this?

[dtokeefe]

No open source license interferes with your right to charge for services.

The question is can you restrict distribution of your code...and what does it mean to "distribute".

Under GPL 3, a hosted app is not distributed, so you have no obligation to make the code available or give your changes back to the original developer.

The Affero license closes that loophole. Sugar CE uses the Affero license, which interferes with your business plan, but does not kill it. Your brand and your ability to sell to customers may be more valuable than the IP you have developed.

There is a discussion of all this here: http://www.sugarcrm.com/forums/showthread.php?t=27882

Best regards,

David

[christianknoll]

You cannot charge for code you got under GPL and did change. So your customized systems needs to provided as Open Source under GPL. But you can of course provide services on that platform and charge for provisioning a system. Your services do not need to be for free. Nor your hardware. You can also offer support services at charge.

christian.

I've looked through a lot of the forums here these last couple days and I THINK the answer is yes, but I'd like someone to point me in the right direction so I can see it for myself in writing.

I've tweaked a Sugar CE installation for a specific industry. It's handling lead management, contact, appointments, etc. Now that I've tweaked it and know how to copy/deploy it rapidly to a new server, I'm in the position to be able to sell this to a group of customers that are already interested. I just want to know that I'm allowed to do this, considering the GPL licensing aspects of CE.

Basically I would charge a setup fee to deploy the installation to the server for the customer, and then I charge a monthly fee for supporting it and backing it up. Is there any problem with doing this?

[alornmage]

Thanks to both of you for your answers. To clarify then, I should explain the following. The extent of my "code" is that I have the skills to edit and extend the abilities of the existing application, such as adding new fields, adding new relationships, customizing the edit screens, etc. I'm using default features of CE to do this. It's nothing any other programmer couldn't do at all and I'm using no proprietary technology to do it. I'm just tweaking options already available to the user and making it better geared to their business.

It's the normal scenario where the user has no idea how do to this kind of work and so I'm doing it for them.

Having said that, what "code" do I need to distribute, or is there any? If a user wants to see his "code" I can happily provide him with the raw PHP files and the raw mySQL data. Is there some provision whereby I'm required to give this to them in a certain format or just make it available if they ask, or is none of this applicable?

[alornmage]

Christian,
So to say I'm charging you $x00.00 for setup and $x.00 per month to maintain your data is ok? And how do I "provide it as open source" in specific? I'm just not sure about that part.

[dtokeefe]

You should read the Affero license here:

http://www.affero.org/oagpl.html

This part is important:

"2. You may modify your copy or copies of the Program or any portion of it, thus forming a work based on the Program, and copy and distribute such modifications or work under the terms of Section 1 above, provided that you also meet all of these conditions:

* a) You must cause the modified files to carry prominent notices stating that you changed the files and the date of any change.

* b) You must cause any work that you distribute or publish, that in whole or in part contains or is derived from the Program or any part thereof, to be licensed as a whole at no charge to all third parties under the terms of this License.

* c) If the modified program normally reads commands interactively when run, you must cause it, when started running for such interactive use in the most ordinary way, to print or display an announcement including an appropriate copyright notice and a notice that there is no warranty (or else, saying that you provide a warranty) and that users may redistribute the program under these conditions, and telling the user how to view a copy of this License. (Exception: if the Program itself is interactive but does not normally print such an announcement, your work based on the Program is not required to print an announcement.)

* d) If the Program as you received it is intended to interact with users through a computer network and if, in the version you received, any user interacting with the Program was given the opportunity to request transmission to that user of the Program's complete source code, you must not remove that facility from your modified version of the Program or work based on the Program, and must offer an equivalent opportunity for all users interacting with your Program through a computer network to request immediate transmission by HTTP of the complete source code of your modified version or other derivative work."

[dtokeefe]

Charging for hosting is definitely OK.

If someone asks for a copy of the system, you have to provide it. Can I have one?



Just kidding.

Many companies in the Sugar space offer CE and Pro versions of their customizations. Using Pro as your base platform allows you to use a commercial license and it's good for your business's financial health to lock in recurrent license revenue. Sugar also has an OEM program. You should contact SugarCRM sales for information.

In any case, just go for it. It's harder to sell than to figure out the smartest licensing choice.

Cheers.

David

[eggsurplus]

If someone asks for a copy of the system, you have to provide it. Can I have one?

Only if you are a user of his version does he have to fulfill that request

[dtokeefe]

Best to consult a lawyer, but item 2b above suggests that you are obliged to distribute to all, if you to distribute to anyone. And under Affero, providing SaaS is distribution.

"b) You must cause any work that you distribute or publish, that in whole or in part contains or is derived from the Program or any part thereof, to be licensed as a whole at no charge to all third parties under the terms of this License."

Item 2d suggests you must make the software available for download by anyone.

You have no obligation to host it for anyone without payment.

[eggsurplus]

Definitely consult a lawyer but it has been made clear in the license elsewhere that making the source available to all "third parties" refers to the users/subscribers/etc of the solution. Not to any Dick/Harry/Jane on the street. That would just be ludicrous and is not the intention of the license.