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CloudStrat: Managing Migration to the Cloud


The CloudStrat simulation focuses on business model transformation for LegaSoft, a leading player in Enterprise Resource Planning (ERP) software. LegaSoft is being disrupted by the Software as a Service (SaaS) model for developing and delivering software. LegaSoft competes against a SaaS competitor called Netware. Players must manage the migration of LegaSoft's business to the SaaS model by balancing the need to grow in the SaaS market while protecting revenues from the legacy business. Players make decisions on product development, marketing, pricing, ecosystem and acquisitions.

CloudStrat is a single-player game that teaches students how to compete and win in the face of disruption. In the simulation, players design and execute strategy for LegaSoft, a market leader in the Enterprise Resource Planning (ERP) software market. LegaSoft has traditionally sold legacy premise-based software, but is now facing an urgent need to transition to selling Software as a Service (SaaS) to compete with NetWare, the SaaS market leader. The market is expected to shift rapidly towards the SaaS model, but the timing of the transition is uncertain and will be different across markets and customer segments. Players must navigate the migration of LegaSoft's business to the cloud by balancing the need to aggressively gain share in the SaaS market while protecting revenues from the legacy business. Players will make decisions on product development, platform development, marketing, sales, and pricing. They also make "make or buy" decisions by investing in internal development of new products versus acquiring a startup company.




Mohanbir Sawhney, Michael Bean

Date Published



General Management

Key Concepts

Business model innovation, Business models, Business-to-business marketing, Competition, Competitive strategy, Defensive strategies, Dynamic capabilities, Innovation, Innovator's dilemma, Marketing channels, Pricing, Pricing strategy, Product management, Reinventing business models, Software development, Technological change


Sawhney, Mohanbir, and Michael Bean. CloudStrat: Managing Migration to the Cloud. Case 5-219-254 (KE1167).


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