Casadellibro.com

1. What would be your decision? Would you stick to the previously developed UNIX platform, or switch to the new Microsoft one? Please feel free to make any rational assumptions you might need in order to reach a decision.

The question whether to stick with the existing platform or to switch to a new one is all but simple. Each option has a main big advantage in addition to a disadvantage. I believe that the decision must arise from a deep analysis of the company's vision for its future. Indeed, staying with the existing platform will assure the company high availability and the power of sustain huge number of transaction. However, maintenance costs will stay very high and at the moment huge number of transactions was not exactly the reasonable estimation. The second option on the other hand seems, as mentioned in the case, intuitively better. Very low maintenance costs and simplicity were two main reasons for that. Yet, one might argue that by switching to a new, less powerful platform might in the future hinder the company's growth due to its limited abilities. Besides the maintenance, the cost of licenses and integration is sunk cost and it would be a shame not to use this. Having said all that, I will conclude by choosing the first option. I believe that the company should stick with the existing platform, at least for another year to see how the market reacts to the latest developments. In case of losses, you can always switch to a new cheaper platform. Changing the platform now and then change it back in case of need is a whole different story and to my opinion, an unnecessary action.


2. Which are the most relevant criteria for you to make the decision? Just name each criterion, and explain it very briefly.
My criteria, which I took under consideration while making my decision were:
Platform's capabilities (in line with future prospects) - a company which sets its goals in expanding and becoming a world leader cannot rely on a relatively weak platform. Online transactions, which suppose to be the company's main source of revenue must always run smoothly, otherwise customers will switch to other competitor.
Costs - The recent developments were not in favor of risky decisions and bold investments. The company must take this under consideration at all time. Loosing a large sum of money at this sensitive point might lead to a bankrupt.