I am re-posting a message from the President of Vtiger. I think this is generally good news and it reaffirms their commitment to open source. I am hopeful that in the long run the spillover from On Demand development into open source outweighs the effect of resources being focused away from open source.
Vtiger 6.5 will be released in June/July, before Vtiger 7.
With 3rd party extensions marketplace, and the work going into our Cloud edition, we believe there is more happening in Vtiger now than ever before. Move to git has improved collaboration –http://code.vtiger.com/vtiger/vtigercrm/activity.
We do have this battle within our Engineering between Cloud and Open source, for more resources. Cloud edition tends to win in short term often because it pays the bills. However, many of the improvements that go to the cloud edition, roll downstream into later versions of open source. Vtiger 6.x drawn from more than 20,000 hours of work that was put into the product. This will continue
In the next 12 months, our goal with open source (and cloud) is to improve the APIs and client side design to make extension development easier.