I helped build a learning management tool for our med school, even set up SSO with their AD. They scanned the hell out of us. And we had flaws. But when the dean said he wanted it on the school's domain, on their server, IT did as told.
I don't know the answer. If you do interesting things, there will be bugs. And a university is full of people doing interesting things. If IT locks everything down you end up hamstrung, like the DoD often is. Another kind of pain I know all too well.