Major regional reorganisation within systems vendor DTI will see the Australian office close and most its staff there made redundant or return to the USA.

As the US-based company focusses more of its efforts on ‘cloud’ based solutions – with server centres in North America and Europe – and with the absence of a viable ‘cloud’ customer base in the Asia-Pacific, the local market would appear to have become progressively harder to sustain.

The 31-year-old company – headquartered near Salt Lake City, Utah – is privately-owned and backed by private equity firm The Riverside Company. It claims more than 2000 customer sites around the world.

In Australia, Asia-Pacific managing director David Page is among those being made redundant, while two members of the support team were returning to the US and a third has resigned.

The office in the Sydney suburb of Rozelle, and another in France are understood to be impacted by the reorganisation, likely to see DTI concentrate on the US, where it has been successful with sales of its cloud-based solutions and new Digital Paymeter subscription product.

The company also has offices in Brazil, Canada, Finland, Germany, Panama, Sweden, and the UK, where customers include Telegraph Media Group. It has a server hub in Frankfurt and two in the USA.

Marketing vice president Steve Nilan says DTI is accelerating its transformation into a cloud company: “Just as more and more customers have moved to DTI Cloud and streamlined their operations, we are doing the same in our own business,” he says. “We always anticipated that these changes would happen gradually over time as the market shifted from traditional on-premises implementations to the cloud.

“What we are experiencing is much faster growth in DTI Cloud while on-premises sales are falling off faster than anticipated. This trend is good news for the company’s long-term outlook and has actually created the largest revenue backlog in the company’s history. Maintenance is DTI’s other significant recurring revenue stream.

“The predictability of recurring revenue is welcomed but being paid monthly SaaS fees also drives us to align our resources with the cloud business model.”

Nilan says DTI is streamlining its operations around the world and assigning the most qualified and experienced employees – wherever they are located – to support customers on a global basis.

“We are also selling our DTI Health business to focus all efforts on our core media market,” he says. “By totally embracing the cloud model and focussing exclusively on our core media market we are strengthening DTI for the long-term.”