What the Social Solutions Acquisition Means for Apricot Software Users
Social Solutions Global (SSG) recently acquired Community TechKnowledge Inc. (CTK™), creators of Apricot™ software.
Social Solutions issued a press release on 6/22/2015 stating that “the acquisition will provide the market with the most comprehensive suite of outcomes and case management solutions…current CTK customers will benefit from SSG’s global presence, name recognition, expansion into the public sector, and broad investment in infrastructure.”
As an Apricot software user the announcement may prompt some anxiety as you determine what it means for you, your organization, and your Apricot database.
Sidekick Solutions is an independent software consulting company that supports both Social Solutions Efforts to Outcomes (ETO™) software and Apricot software. We thought it might be helpful for existing Apricot software users to hear our perspective on the acquisition and what we think the acquisition means for the future of Apricot software.
This post draws on our experience with ETO software and Apricot software and our experience with Social Solutions and CTK as companies, as well as some assumptions and personal opinions that are our own.
Who is Social Solutions and why should I care?
Social Solutions was founded in 2000 with the ETO software platform as its primary product. ETO software is a dominant platform in the social service, human service, social work, and case management nonprofit technology space.
As a company, Social Solutions has a lot of horsepower and muscle. Social Solutions public and private sector reach is particularly impressive. Social Solutions has developed a formidable sales operation that spans many private and public sector verticals. While the sales function sometimes gets a negative connotation, we think a robust sales operation is a good thing for Apricot software users.
Apricot software is a great nonprofit database software product. It is easy to use, reporting is straightforward, it is browser neutral, mobile friendly, and it can manage a variety of data sets. Its flexibility makes it a viable all-in-one nonprofit database platform. Social Solutions’ sales infrastructure by itself isn’t that helpful to Apricot users, but when paired with a great product like Apricot software the combination creates an engine for growth.
Growth is good for existing customers because more growth in a great product equals more focus, innovation, and investment in that great product. Growth ultimately leads to a better Apricot experience with more features, more development, and more capability.
Bottom line: It is our opinion that Apricot software is in good hands in the Social Solutions software portfolio. Social Solutions has the resources and tools available to continue making Apricot a great nonprofit database platform for prospective, new, and existing Apricot software users.
What will happen to the Apricot software platform?
Apricot is a perfect addition to Social Solutions’ software portfolio for two reasons.
- Apricot is a good fit for organizations where ETO isn’t a good fit.
- Apricot has strengths where ETO is weak.
Apricot software gives Social Solutions broad horizontal reach to both public and private sector customers that need enterprise-level software (ETO) as well as a software solution for small and mid-sized nonprofit organizations (Apricot).
The two platforms together make a complimentary software portfolio that achieves the statement made by Social Solutions in its press release. The combination of ETO and Apricot “will provide the market with the most comprehensive suite of outcomes and case management solutions.”
Bottom line: We believe Apricot is here to stay and that Social Solutions will invest in its success.
Will Apricot software pricing go up?
Maybe, but if it does we can’t see it going up too much. Using Apricot software is incredibly sticky (meaning it is difficult for your organization to switch to a different solution), so a price increase probably wouldn’t affect Apricot software retention.
Apricot pricing increases could have occurred under CTK’s watch too. Any company can raise prices, but it isn’t good business to make customers unhappy with excessive pricing increases.
In the past, we’ve seen price increases for ETO software of 10-15% but those increases weren’t recurring, consistent, or common. When prices did increase, the increases were primarily applied to new customers.
Protect your organization against price increases by reviewing your Apricot software service agreements and contracts. Determine the term length and the language that governs price increases. Those two elements will dictate when and by how much the cost of Apricot might go up for your organization.
Bottom line: The timing of price increases are impossible to project, so keep in mind that price increases are a possibility in the future. It is our opinion that any increases will be minimal and low impact on your experience with Apricot software.
Will Social Solutions continue Apricot updates and improvements?
The development cycle for Apricot could go one of two ways. The development cycle could move more quickly due to Social Solutions’ size and financial strength (Social Solutions was recently acquired by Vista Equity Partners, so we assume it is financially robust). The development cycle could also slow down due to Social Solutions’ size and organizational inertia.
The CTK development team did a fantastic job pushing software updates for Apricot on a consistent and continuous basis. They also produced timely and practical updates that greatly improved the Apricot software platform. We assume that the existing Apricot development team will stay in place for the foreseeable future because they are the people who know Apricot the best. We also assume the Apricot development team will maintain the update schedule Apricot users are used to with Apricot software.
As we mentioned earlier in this post, we also believe that the combination of Social Solutions’ sales engine and the fact that Apricot is a great product makes it inevitable that Social Solutions will invest in Apricot. Social Solutions can also bring its 15+ year history and experience with nonprofit case management software and nonprofit database development to make Apricot an even better product.
Bottom line: We think Apricot software development will continue at its current pace at a minimum. We believe that the development cycle will increase in speed as Social Solutions allocates more resources to Apricot’s success.
What should I be doing as a result of the acquisition?
We recommend all Apricot users complete scenario planning and contingency planning. These are things you should consider doing whether Apricot software was acquired or not, but a trigger like the acquisition by Social Solutions is a great place to start.
- Budget for increases in Apricot pricing. Add 10-15% to your existing pricing and build that increase into next fiscal year’s budget. If Apricot pricing doesn’t go up, you can reallocate that money somewhere else.
- Find external and independent resources where you can get support for Apricot software. While we don’t think there will be a lag in customer support, what happens if there is? Where will you turn if you need help?
- Get trained on Apricot. If your organization wants to build internal capacity with Apricot, get trained now. If the pace of Apricot software innovation increases with the acquisition, which we think it will, then you will want to know how updates affect the software structure. The best way to know how updates affect Apricot is to learn the software inside and out.
- Document your Apricot database. Build a data collection blueprint, draft user guides, and map workflows for standard operating procedures. Develop an Apricot software management plan that defines how you maintain and manage your Apricot database. This will help you manage changes to the software as well.
- Review your Apricot software service agreements and contracts. Make sure you know what’s in them. Get clarification on ambiguous language so you know what is expected of you and what is expected of the vendor.
- Develop a relationship with the vendor. Call your account manager and talk to them about the transition. They may be able to give you information you cannot get in a press release. Check-in with your account manager quarterly or semi-annually to get up to speed on changes so you can update your scenario plans and contingency plans as needed.
Social Solutions and Apricot Software
The acquisition of CTK and Apricot software by Social Solutions makes sense. Social Solutions is broadening its market and incorporating a great product into its already well-recognized portfolio of ETO software products. The initial reaction to this type of news can be mixed, especially for Apricot software users, but based on our experience with both companies and both software platforms, we think there is no where to go but up. This was a positive outcome in the nonprofit software space and we are excited to see what the future of Apricot software brings.
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