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Why it makes sense to use Joomla in the global economic crisis.Sam HigginsLonghaus
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Copyright © 2008 Longhaus Pty Ltd
Brisbane Joomla Day 2009
Why it makes sense to use Joomla in
the global economic crisis
Sam Higgins, Research Director
May 2009
Globally recognised as one of Australia's leading boutique ICT research and advisory
companies. Offering localised research and analysis to assist major organisations
overcome the challenges presented by the adoption of global ICT solutions.
Who is Longhaus; Australia’s ICT analyst firm
There is no doubt that we are all facing tough times
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Source: Longhaus Tech Index™ Q2 2009
And we’ve already seen that ICT spending is being
impacted
• Australia’s domestic
business-oriented ICT
spending is
$90-100 Billion
• 80% of this is spent by the
top 7000 Medium to Large
Enterprises
• Within these firms ICT
Budget growth has
declined from 8% in 2008
down to 1% in 2009
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Exacerbating the problem is a lack of capital to fund
deployment of new solutions
• Just over $6 is spent on
operations for every $1 on
new investment
• New ICT investment has
dropped this year by 4%
from 18% in 2008
• Private sector clients are
reporting difficulty
accessing capital
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When times are tough the “Value of IT” also changes
• Just as personal needs change with economic cycles, so
does the IT needs focus of an enterprise
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• Self Actualisation
• Esteem Needs
• Social Needs
• Safety Needs
• Physiological Needs
Source: Abraham Maslow, 1943
The Hierarchy of Personal
Needs
• Just as personal needs change with economic cycles, so
does the IT needs focus of an enterprise
Source: Robert Urwiler & Mark Frolick, 2008
• Paradigm Shifting
• Competitive Differentiation
• Integrated Information
• Stability & Security
• Infrastructure & Connectivity
When times are tough the “Value of IT” also changes
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The Hierarchyof
IT Value
Open source solutions address both the cost and value
dimension, but it’s a constant opportunity
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The real focus for any software solution is to balance this
against the business priorities
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The current priorities and economic climate demands
organisations invest in an effective CMS
Individual Perspective
• Online connectivity has become a “net-cessity”
• 73% of Queenslanders have broadband
Business Perspective
• CMS is the third solution of choice
• 36% of firms are planning or considering a CMS
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And an effective CMS can be a platform for business
growth, but…
What business has is…
• Content Publication
• Static
• Single Purpose
• Siloed
• Transaction
• General Audience
What business wants is…
• Content Management
• Dynamic
• Extensible
• Integrated
• Interaction
• Specific Targets
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But less than 47% of Australia’s medium to large
enterprises have a web content management system
Thankfully Joomla as a CMS solution addresses more
than just cost
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Open Source
Addresses
Cost
Open
Platform
Addresses
Integration
Open
Architecture
Addresses
Extensibility
Open
Community
Provides
Choice
Longhaus; a case study for the value of Joomla
• Almost 4 years ago…Peter Carr created a static site
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Longhaus; a case study for the value of Joomla
• A year after that…Sam implemented Joomla
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Longhaus; a case study for the value of Joomla
• A year after that…Juan implemented Joomla + more
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Longhaus; a case study for the value of Joomla
The final result?
• 100,000+ unique visitors per year
• Average visit time of 8.5 minutes
• Regular new registrations
• Zero ($0) capital investment
• Extremely low operational cost
The implications?
• Retained and increased clients
• Improved profitability through bottom line competitiveness
• Enabled us to re-invest in further business integration
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So, why use Joomla in tough economic times?
• We know slowing or falling top line revenue will be reality
until at least late 2009
• Open source has been shown by our studies and
experience to address the bottom line thereby maintaining
and even improving profitability in uncertain times
• An effective CMS provides a platform for constantly
evolving functionality which is crucial for retaining
customers
• Joomla brings these two factors together in a world leading
solution
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Thank you
Longhaus Head Office
Level 30, AMP Place
10 Eagle Street
Brisbane QLD 4000
Longhaus Research Centre
7/269 Abbotsford Road
Bowen Hills QLD 4006
p: +61 7 3868 4796
f: +61 7 3303 8445
Sam Higgins
Research Director
+61 412 621 014
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OSS for productivity & efficiency
Tactical Strategic
Low
High
Pro
po
rti
on
Of
Po
pu
lati
on
Usage Focus
OSS Contribution
ICT Vendor Use
End User Use
The shifting market dynamic in the OSS sector means
productivity & efficiency now dominate