A few months ago, my former EuroNet colleague Niels Bakker was visiting SF. He works for AMS-IX, the Amsterdam Internet Exchange, which is the world’s largest by volume of traffic, and mentioned they work with a mere 25 employees.

Today, I was attending a presentation by Don MacAskill, the CEO of photo-sharing service SmugMug. He has 2 sysadmins managing well over 300 servers.

At the same time, you hear about the astronomical costs of corporate IT departments: data centers that routinely cost hundreds of millions of dollars, plethora of staff delivering pitiful results and systems that have user interface even a novice coder could beat in a single day of coding..

Why is this so?

You have the usual suspects:

• Dysfunctional top-down corporate cultures, specially when decisions are made on political grounds, i.e. which vendor plays golf with the CIO (or CEO). Often the grunts on the ground know what needs to be done, but are defeated and dispirited by years of failing to budge the bureaucracy.
• Use of poorly manageable software like Windows
• A culture of fire-fighting that eschews automation.
• Risk aversion leading to excessive redundancy. I still cannot understand how Red Hat gets away with its outrageous pricing on RHEL 7.
• In most large corporations the concentration of financial responsibility in a separate department means most employees, including sysadmins, do not feel empowered or responsible for looking out for the company’s money. The bean counters, on the other hand, lack the knowledge required to find the cost savings.

One would think the new economic reality would force a reckoning. It would stand to reason that most companies would institute policies of procuring open-source software first, and only purchase commercial software on an case-by-case exception basis, with tough questions asked. This is still novel enough to make the news.