Take Action

Home | Faculty & Research Overview | Research

Research Details

CloudStrat: Managing Migration to the Cloud

Abstract

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.

Type

Case

Author(s)

Mohanbir Sawhney, Michael Bean

Date Published

09/25/2020

Discipline

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

Citations

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

BUY CASE

You must be a university instructor, corporate trainer, or Kellogg student or alumnus to request a preview.

REQUEST PREVIEW
KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action