Why Private Cloud Computing is not a DIY Activity

In Australia the notion of DIY is alive and well. You only have to look at the performance of the Bunnings hardware chain that in the second half of 2009 posted earnings before interest and tax (EBIT) of $711 million on sales of just $2.28 billion; an enviable EBIT-to-sales profit margin of over 30%. Clearly DIY is a big business. When it comes to ICT the Australian market, despite being a highly mature services market where outsourcing is common place, we continue to hold on to the DIY mentality for key elements of ICT service delivery. In Longhaus’ ICT Spending and Delivery Study for 2010-11 the findings highlighted that across a sample of Australia’s large enterprises 40% of these organisations rely solely on their internal ICT personnel for delivery of services ranging from data centres to service desks. Even more concerning was that one of the most highly commoditised ICT services, the provision of email and calendaring, was still done entirely in-house by 45% of the respondents.

Click here to download Longhaus's report