I'm actually much more interested if there is any financial liability for Instructure here? It's interesting that it's the universities being ransomed, while the technical failure was Instructure's. We're used to uptime SLA's -- what about security breach SLA's?
My guess would be they get likelihood of getting paid when blackmailing 9,000 schools (at least a few would pay up) than blackmailing Canvas/Instructure.
I don't think any SLA/terms would change who gets to feel the pain.
Don't ransom all your eggs in one basket
I dont think a competent CS department requires their being a homegrown or on-prem system for use in the university. That could happen, but if resources could be better spent by purchasing rather than building, then that should be the correct choice.
Universities which do have large agriculture/farming related departments often operate their own small scale test/development/experimental farm.
Also yeah there is value in being able to blame another party, and also being down when everyone else is down.