Why it makes sense to use Joomla in the global economic crisis

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

inquiry@longhaus.com

Sam Higgins

Research Director

sam.higgins@longhaus.com

+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