Journey of transforming legacy monolith to SaaS_Kartik_Suryanarayan.pdf

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Ellucian is the largest higher education technology company, serving over 3000 institutions globally. They are exploring strategies for transforming legacy monolithic software to cloud-native SaaS applications. This involves discovering customer needs, defining a product vision, and outlining a staged roadmap. Key challenges include managing priorities between legacy and new systems, and establishing an effective migration strategy and pricing model for the transition. Execution will be critical to successfully implementing the transformation plans.

Business

Journey of transforming
legacy monolith to SaaS
Kartik Suryanarayan | Product @Ellucian

© 2022 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 2
2
About Ellucian
• Worlds largest Higher Education Enterprise
Technology Company
• Revenue: $721.3 Million
• Owners: Blackstone and Vista
• Impact 18 million students and 3000
higher education institutions globally

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 3
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• Institutions are seeing an increase trend in Department
staff attrition
• Attrition is due to staffs being under paid
• Existing staffs end up working more
• 22% of staff users are getting close to retirement in US,
Canada
Why Highered institutions are preferring
cloud?

© 2022 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 4
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Why SaaS?

© 2022 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 5
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Discovery is Key
• Existing solution analysis is key
• Features the customers use the
most (Use poll or survey)
• Maintenance revenue analysis
(based on usage)
• Customer interviews to validate
key assumptions
• UX discovery – Design Sprints
Prototype validation

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 6
Purpose? - Product Vision: How do you know if you have a clear
vision?
• Vision should have a purpose
• Visualize end state
• Centered around the problem you want to solve
• External and internal stake holders should be able to
align to vision
Today, when [identified group] want to [desirable outcome], they have to
[current solution].
This is unacceptable because [shortcomings of current solutions]. We envision a
world where [shortcomings
of current solutions]. We envision a world where [shortcomings resolved]. We are
bringing this world about through [basic technology/approach]

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 7
Staged Roadmap (How?)

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 8
Managing priorities between Legacy/Monolith and SaaS is key to
success
• Any request should be aligned to strategy
• Possible work arounds needs to be evaluated
• Can customer live with for a little longer?

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 9
Support
Maintenance
Regulatory
Enhancement
Net New
Support
Maintenance
Regulatory
Enhancement
Net New
Shift to
Layer Cake

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 10
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Migration Strategy

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 11
Option 1 – Lift and Shift
• Straight forward approach
• Can be expensive
• Not Recommended for large ERP systems

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 12
Option 2 – Router/Proxy

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Packaging and Pricing

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 14
Packaging - Legacy Monolith
Core Bundle
Add-ons (additional price)
Perpetual License (XXX $)
Yearly Maintenance
• One time upfront payment
• Life time access
• Less Flexibility in pricing

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 15
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• Pricing survey
• Price sensitivity analysis
• Determine Willingness to Pay
• Determine Willingness to Purchase
(Demand rate)
• Cannibalization analysis
• Determine probable optimum price
point
Pricing

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 16
Premium
Premium+
Basic/Foundation
Not Interested
Differentiation
Add-On
Avoid Table Stakes

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 17
Table stakes/MHs
Target Customer
Funnel (B)
Target Customer
Funnel (A)
Table stakes/MHs
Foundation/
Basic
Premium
Differentiation
Target Customer
Funnel (C)
Table stakes/MHs
Differentiation
Add-On
Premium+
SaaS
X $
XX $
XXX $

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 18
Strategy Equals Execution.
All great ideas and visions in the world are worthless if
they can’t be implemented rapidly and efficiently. –
COLIN POWELL (Former US Secretary of State)

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 19
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GTM Strategy – 2024
ISPMA Conference J

© 2022 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 20
Thank you.
Kartik Suryanarayan
Product @Ellucian

© 2021 ELLUCIAN | CONFIDENTIAL & PROPRIETARY 26
Option 2 – Strangler Fig Pattern

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