OW2 Fees FAQ

Last modified by olivier lizounat on 2011/08/26 14:16

OW2 Fees FAQ

  • Has OW2 recently changed its fees?
    Yes. A new fee structure has been decided for the 2010-2012 period. OW2 was launched in 2007 and the fees that were decided at the inception of the consortium have been current over the 2007-2009 period. They are replaced by the new fee structure published here.
  • How was the change decided?
    When we first started working on the 2010 budget, mid-2009, it soon appeared that the then-current fee structure was not sustainable. A new fee structure was proposed by the CEO and discussed at Board level. On January 2010, the board voted te new fee structure unanimously.
  • Why have you increased the fees?
    The previous fee structure supposed a strong in-kind contribution from the membership. In-kind contribution is very problematic to implement, to evaluate and to manage. The fee increase aims at providing the Management Office with sufficient and predictable resources.
  • Isn't there a risk of membership attrition?
    There is a risk indeed, it was not an easy decision to make but the alternative was to "rightsize" the consortium.
  • Isn't there a risk of slower membership growth?
    We do not think so. Of course low fees always facilitate the recruitment of new members but we felt interest for OW2 was growing in all geographies and we believe the new fee structure does not jeopardize membership growth..
  • Why not reduce expenses instead of increasing the fees?
    We looked at all alternatives, but OW2 already is a "low-cost" organization which operates on a tiny budget if you compare to comparable open source organizations. The only only alternative to reduce the cost would be to fire the two employees and that would be like closing down the consortium.
  • When is the new fee structure applicable?
    The new fee structure is applicable as from January 2010. It is to be reflected in the 2010 call for dues.
  • When will you increase the fees again?
    The new fee structure is set for the next three years.
  • Is it necessary to sign a new membership agreement?
    No it is not necessary to execute a new membership agreement. It is clearly stated in the membership agreement signed by all current members that "Fees may be amended from time to time by the Board of Directors in accordance to the Bylaws and shall from the date of such amendment replace the previously existing Fees. Any such change to the Fees shall not require reexecution of this Agreement".
  • Have you changed the Purchasing Power Parity (PPP) rule?
    No. The Purchasing Power Parity mechanism implemented in 2007 is still is place. We have kept the PPP as published by the World Bank in 2005 here. With the uncertain current economic conditions we had no reason to change it.
  • Is the PPP applicable to all Corporate Members?
    Yes. The PPP applicable to all Corporate Members
  • Is the PPP applicable to all Strategic Members?
    No. The PPP is only applicable to the founding Strategic Members. The list of all Founding members is here;
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