CLOUDSTRAT: MANAGING MIGRATION TO

THE CLOUD

Submitted by Group 9:
Arunima Pokhriyal
Nikhil Mittal
Parth Choudhary
Rasika
Vatsala
 LEGASOFT: BACKGROUND

• LegaSoft already is dominant in Legacy market and wants to enter SaaS market
• Legacy offerings of LegaSoft must not be cannibalised by SaaS offerings as Legacy offerings giver higher up-front payments.

SaaS was predominantly targeted at small and midsized business owing to :

• lack of in-house IT staff to deploy legacy software
• lack of financial resources to make large capital investments
• SaaS can be monthly subscription and maintenance is done by vendors

Human Capital Management: HumanSoft

• HCM or Human Capital Management is an emerging new product category which can either be developed internally or acquired from
HumanSoft.

Perk of acquiring HCM are:

• Quicker entry into market
• First Movers Advantage

Cons: Integration Cost.

• Usability refers to the ease of use of your product

• Feature Richness is the research focused at enriching the existing features and/or adding new features in the product to make
it more desirable by the customer

• Reliability is the research work focused at increasing the life of the product
 DECISION VARIABLES

• Pricing. Pricing decisions need to be made for legacy and SaaS modules. They should be based on your knowledge of competitive pricing
and your own pricing strategies.

• R&D. R&D decisions need to be made for both the legacy and SaaS offerings. You will need to decide how much to spend on improving
your products’ usability, customizability (feature richness), and reliability

• Platform. Investment in the platform will make it more attractive to third-party development partners

• Server Capacity. Investment in server capacity will enable your SaaS platform to support a greater number of simultaneous online
customer session

• HCM Module Development. This is the investment you will make to internally develop the HCM module.

• Acquire HumanSoft? This is a binary choice of whether to acquire HumanSoft during the current decision year.

• Marketing and Sales. Marketing spending is allocated by type of marketing communications channel, both offline as well as online.
 LEGACY SOFTWARE
• Increased focus on Enterprise and Mid-size companies, as Legasoft is already a market leader in these markets and its imperative to retain
these customers to keep the money flowing in.

• RD in legacy software is not much needed but we changed the proportion of spending as per the needs of our target customers.

• The prices for Legacy software are increased slightly over the years to accommodate the premium charged for increased reliability and
features of the products.

LEGACY SOFTWARE DECISIONS 2018 2019 2020 2021 2022 2023 2024
Software Pricing
Core Module $50,000 $51,000 $52,500 $52,500 $52,500 $52,500 $52,500
SRM Module $20,000 $20,400 $21,000 $21,000 $21,000 $21,000 $21,000
CRM Module $15,000 $15,300 $15,750 $16,000 $16,000 $16,000 $16,000
R&D Spending (m)
Usability $10 $10 $5 $5 $5 $5 $5
Feature Richness $7 $7 $7 $8 $8 $8 $8
Reliability $6 $6 $9 $10 $10 $10 $10
 SAAS SOFTWARE PRODUCTS

• Increased focus on Small and mid-sized companies, as Legasoft is planning to take over its biggest competitor and market leader in this
market.
• We tried to keep our focus on the developing and emerging markets for our new offerings. Also the Enterprise businesses would not
want SaaS software products as they tend to develop the capabilities themselves
• To compete in the market, we have to keep adjusting the price of the SaaS software

• Simultaneously we have to keep spending on R&D as that would allow us to increase the feature richness, reliability and usability of our
products thus making them more attractive for our customers
• As we acquire more customers in the SaaS software market, we would need a higher server capacity and thus need to constantly keep
updating our servers.
SAAS SOFTWARE DECISIONS 2018 2019 2020 2021 2022 2023 2024
Software Pricing
Core Module $10,000 $9,700 $9,000 $8,250 $8,000 $8,000 $7,750
SRM Module $4,000 $3,880 $3,500 $3,250 $3,000 $2,750 $2,500
CRM Module $3,000 $2,910 $2,500 $2,250 $2,000 $1,800 $1,500
HCM Module $3,000 $2,910 $2,850 $2,850 $2,500 $2,200 $2,000
R&D Spending (m)
Usability $3 $3 $46 $51 $60 $80 $90
Feature Richness $5 $5 $40 $45 $54 $69 $75
Reliability $2 $2 $43 $48 $58 $73 $80
 HCM

• No R&D for development is allotted as we plan to buy the Module. But this may not be feasible in the initial years as the system
integration cost is very high and the Module is not compatible enough with the existing infrastructure and services

• The HCM was thus purchased in 2021 when the compatibility had reached 80%+ and the integration cost had dropped to $45 mn.

• The price of HCM is also continually dropped to make the offering more attractive in a highly competitive market

HumanSoft Acquisition 2018 2019 2020 2021 2022 2023 2024

Acquired HumanSoft No No No Yes Yes Yes Yes
 MARKETING AND SALES EXPENSE 
•The total marketing budget is increased every year to reach out to more customers and capture a higher market share

•The proportion of budget allocated towards different channels is decided on the effectiveness of that particular channel to influence a
particular segment. Thus we have spent a higher amount on in person selling to target the enterprise businesses and trade shows and events to
target the mid and small sized businesses for our new offerings.

MARKETING AND SALES 2018 2019 2020 2021 2022 2023 2024
Marketing (m)
Marketing and Sales Spend $75 $75 $100 $150 $250 $450 $700
Marketing and Sales Allocation
In Person Selling (Inside Sales and
Tele-Sales) 50% 50% 35% 35% 35% 35% 35%
Trade Shows and Events 20% 20% 25% 25% 25% 25% 25%
Owned Online Media (White
Papers, Websites, etc.) 5% 5% 5% 5% 5% 5% 5%
Direct Marketing and Print
Advertising 15% 15% 15% 15% 15% 15% 15%
Paid Online Media (Display and
Paid Search Advertising) 5% 5% 10% 10% 10% 10% 10%
Marketing Automation and
Analytics 5% 5% 10% 10% 10% 10% 10%
THANK YOU