I doubt very much that IT departments are trying to do a bad, expensive job. How much do you know about their environment, constraints, budget, resources, existing systems, policies, legal compliance situation?
IT in medium/big companies can actually be quite hard. That’s why some IT people earn quite a lot of money.
We had a supplier with a good, innovative product that our team was thinking of rebranding and selling to our customers. However, they were moving their hosting into the cloud (Amazon EC2). This affected the deal (along with a couple of other issues) – we handle sensitive data, and Amazon wouldn’t let our IT Security people audit their installations (which includes physical security too).
Two months later – EC2 goes down, taking out some major cloud hosted services for a day or so. When this happens to our services, it makes the news – BBC, broadsheet newspapers – as well as being all over the tech sites.
Cloud is good for some stuff, not good for other stuff.
(Poly has a good point too – in house assets can be capitalised, cloud hosted services tend to be opex)