There are a few options for organizations, but very few that really understand Raiser's Edge, NetCommunity, and all of the fine-tuning that has to take place in between the combination of Blackbaud's suite of products. You have to be really careful when upgrading RE, or FE, or NC or any combination of the Blackbaud products. The software is very complex and whenever you have synchronizations or customizations, it's really critical that the web host understands what you are asking for.

Blackbaud client's have three options: 

1. Host themselves - less costly, but requires a certain amount of staff time, talent and skill. May not be the right solution for small to midsize organizations.

2. Host with Blackbaud -  more costly, but requires very little involvement of your team's IT support. Can be a good solution for small to midsize nonprofits. The negative to this solution is that your data will be on shared servers. This is done for efficiency purposes, and as a result limits your ability to control when upgrades occur, what upgrades will occur to the software, and other owner-control issues. The next issue is that we have found that if you want to add any third-party integration, or a custom part to NetCommunity, or other "unique" solution to your set-up it is virtually impossible. Very difficult to control the environment because you are really in a shared environment. Works for many, not for all.

3. Host with a Third Party provider - the risks are as mentioned above with regards to understanding Blackbaud products, but if you can find a hosting provider that is experienced with Blackbaud products, this may be a viable option. Cost may be an issue, but cost is probably going to be similar to Blackbaud's costs. The only value in going with a Third Party is if they can ensure that you are on a secure and dedicated server, with only your organization's data. If they can provide that, provide credible references, and ensure that they are PCI compliant -- than they are a viable option. 

My tip: Google: " Blackbaud Hosting" and conduct your own due diligence. Speak with both independent and Blackbaud hosting services before signing any contract. It's not a one-size fits all solution. Each organization has to figure out what is best for their specific needs. That's also what keeps everyone on their toes and trying their best!