A Hidden Cost
Migration Costs in Closed SystemsI read about 20 nonprofit blogs. One of my favorites is Non-Profit Tech Blog. It is a great look at technology and nonprofits. In a recent post on Blackbaud the author struck a cord with me.
The jist of the post is that 60 percent of Blackbaud’s revenue is from consulting services, and a big part of those services involve transitioning people to and from their closed system. It is the author’s assertion that Blackbaud, and other vendors, keep their systems closed to keep this revenue stream alive.
A number of our clients use Blackbaud for their offline database of record and we actively promote and use a number of other closed systems. Silas Partners also provides these same migration services to our partners.
It would be the pot calling the kettle a kitchen implement, if I stood shoulder to shoulder atop the barricade of open source on this issue. Although singing “I can hear the people sing, singing the songs of open source,” does appeal to me in a French Revolution sort of way.
However, I think the post brings up a great point about the “hidden” costs of a closed system. Few ministries think about the long term cost implications of moving onto a closed system.
Most ministries assume a one time cost that is necessary if they want to upgrade their online presence. Even if we accept that to be true, which I do not, there is no static system and even upgrades within a system can be painful.
These transition costs also make it more difficult to move off of a system once you are on that system. Innovation is happening at such a rate, that it would be a miracle if one vendor could stay at the head of the pack for the long term.
That isn’t to say all closed systems are bad, or ministries that use those systems are bad stewards. It is to say that ministries need to be educated about all the costs of choosing a closed system.
I know for my part I will be sounding this drum beat inside Silas Partners.
