Should I Use The Cloud for my Charity's CRM Applications in 2011?

The Cloud is currently one of the buzzwords in the IT industry and you may well get great benefits from using it. As such, it makes complete sense for you to consider using it for your (new) database – but not blindly forsaking all other considerations. Treat it in the same way as you would any other technology consideration in your procurement process and if it turns out that your new database will be cloud-based then you will have done that in a proper, structured way.



Possible Benefits
The following list details some of the benefits of using the Cloud for a database application in particular, although as you will see, benefits often have considerations attached to them:

• No software installation (although you might still need to do some configuration on your network/PCs, firewall etc to enable your organisation to access the hosting platform);
• Thereafter, easy/automatic (invisible) upgrades, which is a great time-saver. (Although, you might want to consider if that is always a benefit if it means it happens without your knowledge and therefore if you haven’t done any regression testing on your existing system or without the ability to update end-users on changes);
• Richer functionality than has historically been possible with web-based systems: the latest generation of web-based databases are able to utilise far better technology, flexibility and customisation that is starting to really challenge traditional ‘client-based’ database applications that have historically provided richer functionality;
• Access: It will also be easy for anyone in your organisation to access the database from wherever they are (providing they have got at least a broadband connection), so it’s great for charities with multiple/remote offices and home users, and, increasingly now, for those who require mobile access.

And of course there are other benefits which stretch past the database application itself:

• In terms of your IT infrastructure, the Cloud means you don’t need your own database server and all the headaches/upgrades/licensing issues and IT management which comes with that (technological and HR), and can ultimately mean a lower Total Cost of Ownership (though not always!). You can spread the costs more evenly when hosting;
• PC specifications: for “pure” Cloud applications you may not need such high-spec clients as you would do for Windows-based applications, which in turn might mean you can keep your existing PCs for a longer period before needing to upgrade them;
• Scalability: if you need more server space then that can be added in an instant (obviously at a cost!);
• Security: although this has to be a consideration, some data centres will have far better (physical) security than your charity office ever could!

Possible Downsides
But you also need to consider possible issues:

• When thinking of charity-specific requirements, from an application/functionality point of view, you will have less choice of actual databases which are especially written for the Cloud (although you can use your client-based systems and host them off-site instead), and functionality may not be as rich as some of the better client-based/Windows packages – don’t lose sight of this point at any stage;
• Configuration and customisation: hand-in-hand with functionality, but specifically so, is the point that not all web-based solutions will provide the same level of configuration and customisation that can come with Windows packages - of course, some will, and indeed, some Windows-based databases are not that customisable, but if you need this degree of flexibiity then take note;
• Data protection and security does need to be thought through – it isn’t impossible to ensure they are managed but don’t ignore this;
• You will need excellent and fast enough communication links into the Cloud, from all the locations where you want to access the database from - there is nothing more likely to alienate users than a slow database system - and depending on its criticality to you, a high level of service commitment from your comms supplier(s) and maybe even some redundancy;
• Backups: Any good host will not only take backups but probably have mirrored servers and other technology as well to assist when servers do go down. But for good business continuity planning, I wouldn’t just assume that the host will always do back-ups, so instigate your own process even if it is not daily. Plus, if there is a disaster at the host’s site or you run into contractual issues, then you will have a copy of your data – your most valuable asset – to hand if you need it.

Why Not Outsource All Your Database Management?

The role of Database Manager can be a tough role to fill, especially for organisations who use the more sophisticated fundraising and membership database packages such as Raiser's Edge, IRIS, ThankQ, Progress and many more. You need someone who is not only technically adept but, ideally, someone who also understands your charity's business requirements, who can ask questions and who is able to work pro-actively to help support your database and associated systems.

So I'm wondering if there is an argument as to whether this role could be completely outsourced? Why should you as a charity have to recruit and manage a database manager when there might be a company or individual who could do the job as well or better and potentially at the same or lower cost? After all, many other activities both in and outside technology are outsourced, from IT support and hosting databases to marketing and even HR.

Indeed, outsourced database management has been something which data bureaus have already provided for some years, sometimes admittadly because the databases they have created have been so complex or inflexible that only they could understand them, but sometimes because it made complete sense to the charity to let them do this.

The key would be to find someone who could really understand your fundraising or business requirements but still be able to provide excellent database management. But with specialist companies, database suppliers themselves and some individuals, this would be exactly what they could offer. You would need to determine exactly what you wanted them to do: is their role simply to maintain the structure and data integrity, security and finance codes, or would they actually run queries and write reports, do segmentations and help with mailings, run Gift Aid claims, do data loading, review and write processes and so on. Is it really possible that your fundraisers could simply use the database to just look-up records, run the actual reports, do some basic analysis on donors and prospects?

Some charities clearly think so. Médecins Sans Frontières are renound for their outsourcing, and consultancy, Purple Vision have introduced their 'database management on demand' service for this precise service; and a number of fundraising and membership database suppliers now offer such a service on their own propietary databases too. In fact, on the Database Outsourcing page of my web site, I list another 10 organisations who offer at least some elements of this approach.

But you do need to consider everything very carefully: you would absolutely need a tight SLA (Service Level Agreement), tight data protection contracts, a well-defined scope for the work they are and are not doing, and full clarity on costs. Depending on your needs, it might make sense to have a fixed price contract for specific services or to charge by the hour/day.

But the benefits can be great. A knowledgeable and instantly available person to support you who is (should be) a specialist, (potentially) contractable accountability, potentially lower costs - although I realise that is very much debatable and dependent on the specific contract (e.g. especially with economies of scale for the outsourcer, if their specialist skills mean less time is needed per task, no NI/employee costs etc) - and, as harsh as this sounds, if it doesn't work out, then providing you have considered your contract up-front, then you could still get rid of them for an alternative (as much as this would be a bad thing to have to do).

Let me know if you have succeeded or failed in any such venture.