SaaS Learning Management SystemsFor the Small Business Market E-Learning 24/7 is a global advisory , analyst and research firm dedicated solely to the e-learning market. Our services are available to consumers and vendors. Copyright 2012.
Executive SummaryWith the growth of SaaS Learning Management Systems in theSmall to Mid Size Business Market, we reviewed four LMSs that areon a high growth cycle.Very few consumers know exactly what is cloud computing andmore importantly SaaS. Yet there is a great demand for SaaSlearning management systems.The current state of the Learning Management System market isexpanding at an exponential rate. Our data shows this is due tothree factors:• SaaS• Emergence of SMB sector as a strong buyer• Resurgence in the commitment of ease of use and graphical user interfaces
What is “in the cloud” • Accessing and using online services including software and applications rather than purchasing or installing software and hardware • Access is available not only via a desktop computer or laptop but with any type of device which can tap into the internet • Infrastructure, platforms, data and even hardware is available in the cloud
Cloud Models SaaS PaaS IaaS• Software as a Service • Platform as a Service • Infrastructure as a• End user accesses • Infrastructure or Service applications and environment • Virtualization in the software in the cloud • Enables end user cloud• Most often used ability to build • Servers, storage, model applications and build operating systems, upon pre-existing data centers, delivery applications within networks, databases that environment We forecast the Cloud Total Market to exceed $235 billion dollars by 2020
Community• Infrastructure is shared between multiple Cloud Deployment organizations from a specific community• Often has same concerns such as compliance or security• Can be managed and hosted internally or by a 3rd partyPublic Hybrid• Infrastructure provisioned by cloud provider for open use by the general public• May be owned, managed or supported by educational institution, government, company or combination PrivatePrivate• infrastructure provisioned solely for a single Public organization,• Can be managed internally or by a third party and hosted internally or externally CommunityHybrid• Infrastructure is a combination of two or more clouds• Often unique entities bound together• Offers benefits of multiple deployment modelsCloud deployment information , IDG
Cloud Deployment Types• While there are four types of cloud deployment in 2012, we believe that an extension of the hybrid type will Hybrid become dominant in the industry• Hybrid next generation which will be Private the key driver for the learning management space by 2020 PublicThe e-learning market as a whole will be split betweenhybrid next generation and private. Community
SaaS LMS DriversWhat will drive SaaS Success in the market Minimal Lag Time Enhancements always win Expand Capabilities Eliminate Fears Staying Current Security Downtime will impact8
As technology evolves so does the learning managementsystem market. SaaS systems more than ever need tomeet the demands of the global workforceCRITICAL NEEDS
Critical Needs End users for SaaS LMSs have made it clear that they want a Visual Data inc. graphs and charts Batch uploading Course pre-requisites tied to learning paths Add and remove widgets system that offers the next level of learning Administrator Requirements A SaaS LMS has to enhance on the administration side too 82 % End users identified self- 81 % Of respondents told us 69 Percent of respondents who stated that virtual classrooms and surveys/polls are requirements in a system 63 Percent of respondents who stated SSL is a requirement registration as a that an assessment tool requirement and skill gap analysis were critical to their LMS needs Percent of respondents who listed SSO as a Percent of respondents who identified 59 must need in a LMS 63 competence management as a requirement 75 % 62 %Identified classroom Administration homemanagement as mission dashboard.critical. An administrator is the keyAs e-learning becomes the role in any LMS. They wantprimary mode of learning, to see a quick overview ofinstructor led still plays a key data without having torole traverse the entire system
State of the IndustryLEARNING MANAGEMENT SYSTEMS
LMS Market Likes Essential Features2012 Under what features we you would M-Learning Collaboration 69% 69% like to see in your system - #1 wasA quick snapshot at the state of mobile learning for tablets Social Learning 57%the industry Admin. Wizards 57% Current LMS users: Satisifed to Very Satisfied 78% 67% 66% Customer Test Ease of use Service Engine Integrate with HOWEVER Number of Learning Management Systems Outlook or Gmail. 50% are unsatisfied to neutral with the current LMS‘s 81% End users have told us that having events posted 450 AND GROWING* reports. directly into their Percentage of LMS vendors offering m-learning. calendars is important. Auto e-mail 20 percent Are unsatisfied to Percentage of LMS vendors who offer SaaS notifications. 47% neutral with the learner side interface of their current LMS 93% Learners want instant notification when signing up for 95 percent events and follow up prior to events. * Based on E-Learning g 24/7 Oct 2012 LMS Directory
Learning Management SystemsSMALL TO MID SIZE BUSINESS
SMB LMS WinsThe market is changing, you must adapt Multi-tenant M-Learning with Tablets Price Sensitive Support and Service SaaS
• One click to switch from simple to extended (multi-tenant) • Easy to use, very good feature setDocebo • SaaS, no hosting fee • Multi-tenant • Easy to use, good feature seteFront • SaaS, no hosting fee • Multi-tenant • Easy to use, very good feature setTotara • Can be SaaS, hosting fee • Can be multi-tenant but requires each client to have own account • Very easy to use, good feature setLitmos • SaaS, no hosting fee Four SaaS learning management systems
Nine- Field- Matrix Competitive Strength Docebo Evaluation Competitive Strength Comparison to Competitors Criteria Notes to the weaknessNr. Worse Same Better (Observation Range) and strength of LMS 1 2 3 4 5 6 7 8 9 1 Relative Market Share Great potential to be top tier in SMB. Challenge X tied to moving from open to commercial. Two UI’s. One for Simple version, other for 2 Learner User interface extended enterprise. EE should be priority. X Extensive feature set and lower price point. Will 3 Added Value Simple option be a big enough benefit to keep? X Extended enterprise is the key. Simple option 4 Quality X understandable, not seeing same quality. Great approach. Pricing is flexible for all size of 5 Pricing Structure businesses and organizations. X Very robust. One touch multilingual capability is X 6 Personalization a winner. iCal for Outlook and Gmail – big wins. E-mail and 7 Event management X SMS notifications. Calendar needs improvement. HTML5 and Tin Can support. No on/off synch for 8 Mobile Learning tablets is a real issue. X Very strong feature set including video 9 Features and functionality X streaming, widgets, one click. Strong, but is hurt by difficult UI on10 Extended Enterprise capabilities X administration side and lack of m-commerce. Ranked #10 in our Top 25 LMSs. Top tier system Overall Assessment for SMB. Continues to exceed our expectations. X
SaaS Learning Management SystemsWHO ARE THE LEADERS IN THE SMBMARKET
Magic Quadrant Challengers Leaders High Interactyx Docebo Upside Learning Absorb SuccessFactors (for Totara SMB) Litmos Ability to Execute eFront Cornerstone on Cogentys Demand (for SMB) Prometheus Firmwater Low Niche Visionaries Completeness of Vision
Feature Comparison Docebo Litmos Totara eFrontMulti-tenant Yes No Yes Yes1 Click Simple to Yes No No NoEnterpriseBuilt-in Help Desk Yes No No Yes*Integrated Salesforce Yes No** No** YesSCORM 2004 Yes No No YesE-mail/SMS Auto Yes No*** No*** No***NotificationHTML5 and Tin Can Yes Yes No NoSelf-Registration Yes Yes Yes YesE-Commerce Yes Yes Yes Yes* Ticket System only (eFront)** Totara can via an API, however system does not come with Salesforce already integrated** Litmos states they can integrate with any CRM, does not come with Salesforce alreadyintegrated*** Does not offer SMS notification (Litmos, eFront, Totara) Listed features as of 9-25-2012
Docebo - SWOT 1. Extended Enterprise Strengths Weakness On-going growth especially in SMB market. 5 2. Differentiation 4 Stand out from competitors in 3 same space. Lead, not follow. 3. Forward Thinking Applying consumer marketOpportunity Threats demand to system. 4. Pricing 1 Structure offers scalability and 2 flexability for any business. Perception 5. Market identifies low price with poor quality.
Information• Survey conducted Sept 15th to Oct 5th, 2012. Total number of respondents was 645. Partial responses were removed. Data was generated based on the remaining survey respondents of 536.• E-Learning 24/7 LMS directory as of October 9th, 2012. The directory consists of 450 vendors. The directory is updated bi-monthly.