Damn, this is a big one. I've been watching since it started, and I hope it sends shockwaves through the SaaS model. Institutions learned overnight how by trusting one single private company that they were all screwed over, and probably made them even a bigger target. Hopefully they start re-evaluating.
Having worked ed-tech for a while, I'm not surprised. Blackboard, Canvas, all hot garbage. There's a real need there, if someone can do a simple selfhosted (by the university) version with oauth/SSO to campus networks that lets them control their data? It'd be a no brainer, I think most campus IT networks would prefer that.