Many organizations that choose DIY hosting do so because they have an infatuation with owning innovative technologies that drive business forward. Having industry standard, cutting edge hosting, requires a significant commitment to stay ahead of the curve (aka, your competitors). In the business of hosting this entails spending significant time learning new technologies and researching/ buying the latest equipment.
In the end, my experiences as a Director of Technology taught me a valuable lesson--outsource whenever possible. You can hold someone else accountable for all the challenges, and be more nimble about transitioning to better solutions. And, even better, you don't have to maintain the "server farm" (virtual or not).
Everything posted on Miguel Guhlin's blogs/wikis are his personal opinion and do not necessarily represent the views of his employer(s) or its clients. Read Full Disclosure