where to go next after your child or student learns Scratch -- programming with Alice
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If your child or student already knows Scratch, we recommend Alice.


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Alice was designed to teach programming. It includes the features of programming that Scratch does not have, such as functions, methods, objects, and inheritance.

It is made at Carnegie Mellon and it is free.
http://www.alice.org/

This is a very thoughtful discussion of this issue.
This comment about Alice is quite well written
http://scratch.mit.edu/forums/viewtopic.php?pid=40258#p40258

As I mentioned earlier, (with some reservations), I currently believe that the most obvious next step middle ground between scratch and C++ is Alice. It also uses the drag and drop paradigm, thus eliminating the possibility of syntax errors. It includes most of the programming concepts that the curriculum at my college considers to fall in the "fundamental programming" category, and it provides a great deal of immediate sensory feedback to capture and hold the attention of budding programmers.

The next step beyond that would logically be either Java, C#, or C++. For those students interested in advanced placement in a computer science curriculum, the obvious choice is Java. For those interested in the game industry, C++ (including embedded C for speed) seems (unfortunately) to be the best choice because that seems to be the language of choice at most of the game programming companies.

http://scratch.mit.edu/forums/viewtopic.php?pid=40596#p40596
lists what Alice has


Rating (1 to 100) 75 = very good; 50 = good; 1 = unknown
72

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Authored by kidslikeinfo on Aug 07, 2008.

the one most important feature of Scratch that Alice does not have is that there is no place to upload and share your Alice programs.
http://www.alice.org/community/archive/index.php/t-1475.html