Eduventures Research Shows Accountability in Higher Education Drives Growth in Academic Computing Market

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Learning Management Systems Adapting to Market Demands To Remain Competitive: The Academic Computing market in higher education is destined for accelerated expansion driven by the evolution of the Learning Management System segment and the mounting external pressures for institutional accountability, shows a recent study by Eduventures, the leading research and consulting firm in the education market. In its report, Postsecondary Academic Computing: Identifying Opportunities Beyond the LMS, Eduventures provides a comprehensive view of the Academic Computing market as seen by higher education CIOs and senior academic leaders, as well as key suppliers.

The Academic Computing market in higher education is destined for accelerated expansion driven by the evolution of the Learning Management System segment and the mounting external pressures for institutional accountability, shows a recent study by Eduventures, the leading research and consulting firm in the education market. In its report, Postsecondary Academic Computing: Identifying Opportunities Beyond the LMS, Eduventures provides a comprehensive view of the Academic Computing market as seen by higher education CIOs and senior academic leaders, as well as key suppliers.

Postsecondary Academic Computing technologies, including Learning Management Systems, Learning Outcomes Management, Content Delivery, and Communication and Collaboration, play a key role in supporting the process and delivery of learning; nurturing an online collaborative communications environment; and collecting, reporting, and managing student learning data. Eduventures estimates the Academic Computing market will finish the year 2006 at $463 million, with an expected 11 percent annual growth rate through 2009.

“Building on an increasing accountability drumbeat by regulators, accreditation agencies, and tuition-weary parents, institutions are debating the need for tools to manage and provide proof of their learning and performance outcomes,” said Catherine Burdt, a Postsecondary Solutions program senior analyst for Eduventures, a research-based membership organization designed for vendors serving postsecondary institutions. “At the same time, the LMS providers, which represent the largest segment of the postsecondary Academic Computing market, are evolving to become the hub for academic computing efforts, and expanding their solutions to capitalize on emergent opportunities in adjacent learning areas.”

Learning Management Systems, with a 90 percent adoption rate among U.S. higher education campuses, are growing by expanding their platforms’ capabilities, driving enterprisewide deployment, and capitalizing on the continued growth and acceptance of online learning. LMS providers on the whole are seeking to extend their solutions into adjacent areas currently served by niche suppliers, particularly in the Learning Outcomes Management and Communication and Collaboration segments.

“The LMS market growth is fostered by expanding market needs – the applications, content, and integration tools – that build on the investment that colleges and universities already have made in their LMS foundation,” continued Burdt. “Suppliers and buyers in the Academic Computing market segments should stay apprised of these trends because changes in the LMS space will influence opportunities in surrounding segments.”

The Learning Outcomes Management segment, which is comprised of products that support development, delivery, reporting, and management of assessment-related activities, has emerged as a new source of opportunity for both LMS providers and niche suppliers. Although it is in its nascence, and remains the smallest of those in the Academic Computing market, LOM stands to benefit from the increasing pressures colleges and universities face regarding student performance and institutional accountability.

Positioned at the intersection of changes in instruction, shifting student learning dynamics, and technology enhancements, the Communications and Collaboration segment will experience some of the most significant near-term changes among the Academic Computing technology market. In its broadest definition, the segment encompasses social networking tools and shared workplace tools. From a commercial standpoint, however, the Communication and Collaboration segment is dominated by revenues earned by virtual classroom platform suppliers.

“In the coming years, the Academic Computing market will be marked by smaller, entrepreneurial companies jockeying for position in emerging segments and larger, established providers extending capabilities to add value for their existing institutional customers,” said Burdt. “The still underdeveloped Learning Outcomes Management and Communications and Collaboration segments will see considerable activity, particularly as college and university administrators and faculty gain a greater appreciation of the value and impact of these solutions.”

These are just some of the findings from Eduventures’ report, Postsecondary Academic Computing: Identifying Opportunities Beyond LMS. The full report, which was designed to provide suppliers with a comprehensive examination of the emerging market and demand for Academic Computing, is only available to members of the Eduventures Postsecondary Solutions Program. For more information on this report or Eduventures Postsecondary Solutions Program, contact Eric Bassett at 617.532.6036 or ebassett@eduventures.com.

About Eduventures, LLC

For more than a decade, Eduventures, LLC has been the most trusted name in the education market for market research, consulting services, and peer networking. Its clients include senior administrators and executives from leading educational institutions and companies serving the K-12, higher education, and corporate learning markets, as well as decision-makers in government agencies and the investment community. For more information, visit http://www.eduventures.com.

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