OK, that’s not the real story. Check out this quote from today’s Barron’s blog posting on Blackbaud’s stock:
MacMillan says the company, which makes software used by non-profits, “is beginning to feel the headwinds of a slowing economy.” He says non-profits are “scrutinizing deals more vigorously,” which has made it harder to close business. “Given the outlook for more potential weakness in giving, we think non-profits are slowing the rate of spending on echnology.”
If true, this doesn’t only impact Blackbaud but every other vendor we’ve got as well. Ok, fellow nonprofit IT people, are you seeing IT spending decreasing at your org or are other areas being “adjusted” instead?
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Allan, my guess is that this hurts Blackbaud more than many other vendors because of the high price point of Raiser’s Edge. If you are struggling, you still need a donor database. But you might go with the increasing number of lower priced options out there or a Software as a Service option.
I think it will hurt iMIS as well, as they have tried to move past association management and into Blackbaud’s fundraising business.
I would think CRM would be hurt before Raiser’s Edge but both RE and CRMs are in longer-term contracts so I don’t think the effect can really be felt until it came time to renew the contract. What happens to an RE installation if the support contract is not renewed?
It’s also pretty costly to shutdown either a CRM just because you’d still need the data. I would think that other things would get hurt instead — backup Internet, hardware backups, tape purchases, new servers, etc.