National K-12 Education:Scope of Market

There are 98,817 public schools in the US organized into 13,588 districts.

Over 50 million students are enrolled in K-12. Nearly 3.1 million public school teachers

K-12 spending accounts for nearly 50% of all education spending!

Public Education IT Spending2014

2.5% Increase in a

Single Year

Source: Center for Digital Education, White, house, FCC, Xplana

$9.94 BILLION

Priority 1 Awarded

$1.95 Billion

2014 Changes to E-Rate(ConnectED)

More Wi-Fi Focused, Less Telecom Based

No More Priority Term Use, Now Categories Category 1 Broadband Category 2 Internal Connections and Maintenance

Caching Devices and Managed Wi-Fi Allowed Email hosting, web hosting and paging services not allowed

More Long Term Planning Oriented 5 Years

Perspective on California K-12 Education

California K-12 Education:Scope of Market

There are 7,725 public schools in California

Organized into 949 districts.

More than 6.2 million enrolled K-12 students

Nearly 300 thousand public school teachers

Funding and Legislative News: K-12 Education

$40 Billion

40% of States General Fund Resources

CaliforniaK-12 Public Education

$141 per student for IT

$1.25B to Implement Common Core

Navigator, National Center for Educational Statistics (NCES)

$875 MillionIT Spending

Student Data Privacy Legislation

SB 1177 (Steinberg) Privacy guidelines for operators of websites, online services,

online applications and mobile applications. Stops the use of unauthorized student data for personal gain

AB 1584 (Buchanan) Deals with contracts between local educational agencies and

third-party technology vendors. Establishes that local educational agencies own and control

student records.

New Funding Streams

California Career Pathways Trust Created in the summer of 2013 Began accepting grant applications for the $250 million fund Money would pay for career training and educational programs

November Bond Initiative (AB2235) Would provide $4.3 billion (est.) in general obligation bonds Fund school modernizations and upgrades Take pressure of school budgets to fund needed improvements

Top 10 School Districts inCalifornia (Budget)

1. Los Angeles Unified - $13.03B

2. San Diego Unified - $1.54B

3. Long Beach Unified - $1.01B

4. Los Angeles County Office of Ed- $973.5M

5. Fresno Unified - $959.6M

6. San Francisco Unified - $715.9M

7. Oakland Unified - $596.9M

8. Elk Grove Unified - $583.4M

9. Poway Unified - $500.8M

10. San Juan Unified - $484.2M

Source: Navigator

Market Realities

Various mandates are driving market investment. Districts must implement online assessments.

Teaching and learning is ever more mobile. 31% of district leaders believe that increasing the use of mobile

devices for will have the largest impact in the classroom.

Curriculum is increasingly becoming more personalized and digital. 26% of district leaders believe that evolving learning

environments will have the largest impact in the classroom.

State of Transformation

Were in the beginning of the digital transformation. Technology will no longer be nice to have.

Right now, everything is in flux. Teachers, administrators, school boards and legislatures, are

struggling for the right mix of budgets, expectations and standards.

The market is evolving!

Are you having a difficult time managing the influx of technology on your campus or in your classrooms?

Limited personnel resources 57%

Difficulty monitoring student behavior on devices 49%

Time consuming IT maintenance and updates 42%

Lack of hardware and software integration 39%

Device and data security 31%

Other 24%

What challenges are you facing when it comes to managing technology?

The Evolution is Challenging

63% say Yes!!!

Impact of Mobility

70.8% of district leaders said that mobile tech has been adopted in at least a quarter of their schools.

By high school, 51% of students carry a smartphone with them every day.

More than a third of end-user devices shipped to U.S. education institutions in 2012 were tablets.

Over 1 million Chromebook devices sold to schools in 2nd

quarter alone

Going Mobile Checklist1. Educational Objectives and Culture Outcomes Seeking? Open Culture?

2. Capacity of Infrastructure Assess Current Infrastructure

3. Compliance Adhere to Compliance of Federal and State Laws

4. Security and Management Disaster vs. Distraction

5. Device Requirements Apps Used? Meet Curriculum Needs?

6. Professional Development Teachers in Position to Make a Success or Failure

7. The Parents BYOD vs. 1:1 Parents Play a Role in its Success

Curriculum is Changing too

K-12 spends $8 billion on instructional materials annually. Pearson, McGraw-Hill and Houghton-Mifflin have captured 85%

of the textbook market in K-12.

Virtual learning revenue growth increased from $73 million to $178 million between the 2010-11 and 2011-12 school years. By 2019, half of all high school courses will be in some online

form

The curriculum and textbook business is evolving and so are the providers. Potential disruption of the sharing economy?

Source: Center for Digital Education, Innosight Institute

Infrastructure and IT

Readiness

MobileDevice

Adoption

21st

Century Classrooms

Blended Learning: Future IT Investments

2014 Quarterly Special Reports

MEASURING LEARNING SUCCESS

INTELLIGENT CAMPUS

CLASSROOM MANAGEMENT

BUILDING THE CURRICULUM OF THE FUTURE

For more information or to pre-register:

www.centerdigitaled.com/roundtables

Follow the conversation at #cdelive