Selecting an On-Demand LMS

A Litmus Test for Separating Hype from Reality in the World of SaaS

presented by

Will Hipwell

June 6, 2007

Today’s Agenda

• Role of the LMS• Two Deployment Choices• What is SaaS?• Advantages of SaaS• Best Use Case Scenarios for SaaS• SaaS Myths• Litmus Test• Free Resources

Poll #1

Would you say you understand the differences between LMS software deployed on-premises vs. on-demand Software as a Service?

1. Clear as a bell.2. Yes, but I’m no expert.3. Maybe. But not enough to have an opinion.4. Huh?

The Challenge of Enterprise Learning Technology

The LMS is the primary management system for training and development:

• Managing training administration

• Scheduling and resource management

• Reporting

• Maintaining user groups and roles

• Cataloging and tracking electronic content

• Grouping content and user into groups• E-commerce

Evolving Role of the LMS

• Store and manage e-learning content• Deliver integrated assessment and skill libraries• Integrate with other enterprise applications for:

– Learning

– Compliance

– Training Measurement

– Webcasting

– Knowledge Management

LMS Deployment: Two Choices

• Traditional software license sold foron-premises or behind-the-firewall installation

• Software as a Service (SaaS)– ASP/hosted model– True Software as a Service

Poll #2

Do you have a LMS, and how is it deployed?

1. Yes. Installed on-premises behind-the-firewall as traditional software.

2. Yes. SaaS/on-demand solution.

3. Yes. But not sure if hosted or on-premises.

4. No. We do not have a LMS.

What is Software as a Service?

Software solution that is hosted and supported by a vendor as a service, which is accessed by users via the Internet, without the need to deploy and maintain an on-premise IT infrastructure.

Whereas some people associate SaaS with pay-as-you-go subscription pricing, SaaS is more indicative of the hosted deployment model. In fact, SaaS can be priced via subscription, annually or perpetually.

Advantages of SaaS

• Speed to implementation & business impact• Predictability• Faster & higher ROI• Improved overall satisfaction• Direct cost & resources savings• Low cost of entry• Outsourced system & technical expertise• Rapid upgrades/access to updates• Avoid technology obsolescence• Focus & operational freedom• Flexibility• Reduced hassle & risk

The Known• Software

• Implementation & Integration

• Support and IT personnel

• Hardware

• Training

The Unknown Risk• Length and rate of implementation

• Delayed time-to-market

• High deployment risk

• User acceptance and adoption

• Ongoing maintenance & upgrades

• Full application lifecycle operation

Hidden Costs

HardCosts

Licensed vs. SaaSLicensed GeoLearning

On-Demand/SaaS

Acquisition Purchase and pay maintenance. Rent software as a service.

Configuration & Upgrades

You take responsibility; requires IT commitment & investment.

GeoLearning takes responsibility; upgrades happen automatically.

Content Integration You do it. GeoLearning does it.

Systems Integration Complex and costly. GeoLearning does it.

Typical Risks High cost; long implementation. GeoLearning’s proven service & support history.

Best Fit Heavy IT commitment. Cost concerns; high service demands; low or no IT resources.

Satisfaction Fair. High.

Vendors Plateau, SumTotal, Saba, Oracle GeoLearning

Cost Structure Comparison

Best Use Case Scenarios for SaaS

• Cost conscious without surprise expenses• Users external to “the network”• Geographically dispersed audience(s)• Low-to-No IT support/staffing/resources• Best-of-breed approach to total solution• Require high service levels• More than “just software” from a vendor• Abreast of technology advancements• Small training/HR group (divisional solutions)• Flexibility to scale for future growth (quickly)

Five SaaS Myths

• High security

• Proprietary content

• Data security

• HRIS/ERP integrations

• Global enterprises

Is All SaaS the Same?

• BTF vendors adding “on-demand,” “SaaS” or “ASP” to product names.

• Streamlined BTF product retro-fitted for Internet delivery but less functionality

• BTF & SaaS product roadmap are not same• Service Level Agreements (SLAs)• Bersin: 5 to 10 references from production clients

similar to your solutions• ASP…is a 3rd-party now involved?

How is SaaS Changing Corporate Learning?

• 1 in 3 to 1 in 2 of every LMS now being purchased is SaaS/hosted/ASP

• Adoption rates are skyrocketing• Speed & global competition…unwilling to wait

12 months for deployment• Platforms are required to manage more and

more complex business processes• Doing more with less resources• Convergence of learning & performance to talent

Separating Hype from Reality

• Discern between true SaaS and vendors new to the space or jumping on the bandwagon

• Questions to ask of vendors in your search• No right or wrong answers• But answers do shed light on capabilities

and how they match up with your business requirements

• Comfort level

Poll #3

Which best describes your current LMS search status?

1. Searching for SaaS/hosted/ASP

2. Searching for on-premises software

3. Not searching

Litmus Test: Questions to Ask

1. Focus & Core Capabilities2. SaaS % vs. BTF %3. SaaS functionality vs. BTF functionality4. SaaS deployment vs. BTF deployment

methodologies5. Hosting location6. Hosting resources7. Security: physical, network, data

Litmus Test: Questions to Ask

8. Service Level Agreements

9. System Performance

10. Network & System Administration

11. Data integration with others systems

12. Software Upgrades

13. Technical Support Options

14. Content Support Services & Vendor Management

15. Access to Learning Services

Free Resources from GeoLearning

Today’s PPT Slideswww.geolearning.com/june6

SaaS Litmus Testwww.geolearning.com/litmus

Enterprise Learning Technology: A New Breed of Solutionswww.geolearning.com/newbreed

E-Learning Strategy Blueprintwww.geolearning.com/bp

Technology Requirements Checklistswww.geolearning.com/lmschecklistwww.geolearning.com/lcmschecklistwww.geolearning.com/webcastchecklistwww.geolearning.com/talentchecklistwww.geolearning.com/analyticschecklist

Q&A Session