Ambient IT Training Snapshot - Jan 06

8/4/2019 Ambient IT Training Snapshot - Jan 06

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Ambient Insight LLC

Sam Adkins, Chief Research Officer

[email protected]

Virtual Instructor-led Classrooms, Virtual Labs, LiveMentoring, and Process-Embedded Learning CannibalizeClassroom and Self-paced eLearning

Key Findings from Ambient Insights 2006Snapshot of Learning Technology Trends inthe US IT Training Industry:

The Learning BPOs reinvent the supply chain and acceleratethe demand for learning technology products
http://www.ambientinsight.com/http://www.ambientinsight.com/


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Ambient Insight 2006

Agenda: 2006 Snapshot of Learning TechnologyTrends in the US IT Training Industry

Introductions Pedagogically-defined Learning Product Taxonomy

Key Findings

Learning Product Buying Trends

The Impact of Learning Business Process Outsourcing

IT Training Trends linked to the New Stack

Who gets Trained?

Who is the Buyer? And What are They Buying?

Data in this presentation is US-only


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Ambient Insight Learning Technology Product Taxonomy5 types of buyers, 9 product types, 5 types of users, and 4 vendor types

Note: The Consumer is the ONLY segment in which the buyer and the user arethe same. In all other segments, buyers and users are different demographics.


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Key Findings: The Old Industry is Gone

The US IT Training Industry has never recovered from thePerfect Storm: 9/11, dot.com meltdown, stock market crash,recession, IT spending slowdown, downsizing, andoutsourcing

The old industry is gone and will never recover

The New Stack creates a new user demographic and a newbuyer demographic

The Learning BPOs have reinvented the supply chain and areaccelerating the demand for learning technology products

There is a vast grey market now offering IT Training products

and services outside the legacy channel system

Virtual Instructor-led Classrooms, Real-time Virtual Labs, Live Mentoring,and Process-Embedded Learning Cannibalize Classroom and Self-

paced eLearning

Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry


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Key Findings: The New Industry is Here

Continued accelerating commoditization and pricing pressureson IT Training products caused by:

Steady decline of training budgets and training benefits

Rapid decline of internal HR and Training departments in the US

Steady reduction of internal IT staffs and IT population in US

Migration of staffs and budgets out of legacy buyer organizations andinto Outsourcer firms

Corporate training operated by outsourcers is a profit and lossoperation. Employee Performance is secondary to the P&L

Outsourcers aggressively moving customers away from high-

cost, low-margin products to low-cost, high-margin products Private labeling of products and services is wide spread (your

outsourcer uses an outsourcer who uses an outsourcer)

Largest Training Services buyer is now the Outsourcer



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Total US Education and Training Market 2006across Consumer, Academic, Government, and Corporate Segments



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Total US Education and Training Market 2006-2011across Consumer, Academic, Government, and Corporate Segments




US Learning Product Demand 2006-2011: CoursewareeLearning Products versus Non-Courseware Learning Products




LMS-CMS is Commodity Market Now: Low-cost Learning Appliancesand Open Source Solutions Emerge Aimed at the Massive SMB

Dells Learning System(DLS)

Googles Mini SearchAppliances


LMS market across all buyer segments flat with.31% five-year CAGR

Revenues in steep (-20.6% five-year CAGR) declinein the Enterprise

Demand high but low-cost LMS platforms, andlearning appliances exploding onto the scene

Hundreds of new LMS companies offering very low-cost alternatives

LearnShare consortium enters the market withenterprise and SMB-priced products

NetDimensions and dozens of others offering verylow cost enterprise platforms

Attend Software, Makau, Virtual UniversitySystems, Xornet, 360training, and Dell offer verylow-cost plug and play learning appliances on aNAS storage device

Even Google wants the SMB: The Google MiniSearch Appliance now comes in two smaller sizes - a200,000-document search capacity Mini for $5,995 and

a 300,000-document capacity version for $8,995



Who is the Buyer? 2006 to 2011 US Installed Learning Technology

Platforms & Tools Market Flat but Huge Shift in Buyer Demographics

By 2011 SMB Market Accounts for 55% of Corporate Market




Picture of Success: Moodle and other Open Source LMSPlatforms Take International Education LMS Market by Storm

Source: Moodle, 2005

Follow the money: The adoption data speaks for itself

Source:TeacherHosting.com, 2006

A lot of money being made aroundplatforms that are free

Vibrant cottage industry for fee-basedcontent services and technicalservices for Moodle

Comcourses Learning Bridgecommercial product based on

Moodle Moodle.com, GlobalLiteracy,

TeacherHosting.com, rSmart, andhundreds of other service providersnow provide fee-based products andservices




2006-2011 US IT Training Trends: New Learning TechnologyProducts Cannibalizing Both Classroom and eLearning



2006-2011 US IT Training Market Growingby 2.5% Five-year CAGR




Real-Time Collaboration-based Learning TechnologyFastest Growing Product in IT Training Industry

Ambient Insights 2006-2011 US Market Forecast for Real-time Collaboration-based Learning Products and Services



Major Catalyst for Learning Technology Adoption is ExplosiveUS Growth of Learning Business Process Outsourcing




The New Stack Demands NextGen Learning TechnologyIntegrating Identity, Collaboration, and BPM Technology



SOA Changes Everything: Conventional ApplicationTraining Goes Away with Web Services




Rapid eLearning is too Slow: Process-EmbeddedLearning is Very Fast and Profitable

Source: Epiance, 2005

Demand for Process-embedded Learning is being fueled by Outsourcing growth

All Process-embedded Learning isEnterprise Application training

Process-embedded Learning productsdecrease content creation and maintenancecosts by as much as 60-80%

Decrease help desk calls by 60-75% (the

average helpdesk call costs $125 in the US) Process-embedded Learning eliminates

lost opportunity costs caused by going toa class or taking a elearning course

Is there Money in it?

Epiance had $5 million in revenue in 2003and expects $40 million in revenues by theend of 2006

Global Knowledge On Demand revenuesgrowing by 40-50% a year for the last 4years



PersonalizedWorkflows

WorkersModify

ManagersManage & Measure

BPM AnalystsModel

ITsModel

Who Gets Trained in the Presence ofDecision Support andTask Support Embedded in Personalized Rich Clients?



Evolving Complexity of Web Services StandardsCreates Demand for New Training

New training products required for a combined audience of SEs, Developers,

Security Managers, Compliance Managers, Business Process Analysts, andLine-of-Business Managers

Vertical Task and Decision-Support has to be embedded in local BPMmodels


h i d h hif i



Who Gets Trained? The Shift inDemographics is Profound

CIOs now expected to be proficient business managers,compliance managers, and security professionals

Business Process Analysts function as Developers, SystemArchitects, Business Managers, Training SMEs, andInstructional Designers

Helpdesk personnel are now providing live online mentoring(Dell) and in person tutoring (Best Buy)

Sales Engineers expected to pass non-secure productcertification exams

Growing counter-culture of developers prefer to call

themselves the community and not interested in titles,certification, or role limitations

Everybody is an Expert: Blogs now primary source oftechnical information for IT pros, developers, and power users



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Who Gets Trained and How They Get Trained Linkedwith the Evolution of IT and New Learning Technology


Wh t Th B i ? I di id l


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What are They Buying? Individual versusOrganizational IT Training Buying Behavior

AmbivalentBuyers

CautiousBuyers

StrongBuyers



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Ambient Insights 2006 Snapshot of Learning Technology Trends

in the US IT Training Industry ( available February 15th, 2006 ):

http://www.ambientinsight.com/Reports/ReportsMain.aspx

10 reports in Ambient Insights US Real-time Market Forecast forReal-time Collaboration-based Learning Products and Servicesseries:

Three Product Market Forecast Reports by Product Category Content Products and Events Content Services and Technology Services Installed Technology

Six Buyer Market Forecast Reports by Buying Segment: US Consumer Market

US K12 Academic Market US Higher Education Academic Market US State and Local Government Market US Federal Government Market US Corporate Market

Vendor Profile Report

Sources and Related Research

Ambient Insight: We put Research into Practice
http://www.ambientinsight.com/Reports/ReportsMain.aspxhttp://www.ambientinsight.com/Reports/ReportsMain.aspx


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Questions and Comments can be emailed to:[email protected]

Ambient Insights 2006 Snapshot ofLearning Technology Trends in the US IT

Training Industry

Documents

Ambient IT Training Snapshot - Jan 06