30 April 2011 www.trainingjournal.com

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According to recent research by Accenture1 , 44 per cent of large organisations, in nine countries across the world, are already using cloud computing for a wide range

of critical applications. By 2012, it is predicted that this will rise to 54 per cent.

Accenture states: “Executives in both the developed and developing world will take advantage of cloud computing to run leaner, more agile operations and expand their businesses . . . Clouds will undoubtedly change not just companies but entire industries as executives better understand how they can use this powerful technology.”

Cloud computing may seem like the latest buzz-word doing the rounds in the IT world but there’s a lot more to it than just hype. It allows organisations the freedom to implement IT systems that would previously have taken up a huge amount of internal resource – a large amount of time as well as a considerable cost.

What is the cloud and why should I be a part of it?Cloud computing is a way of harnessing virtual spaces across the Internet. It allows access to data and storage services without the need to manage their physical location. It means you can tap into a wealth of infrastructure at the touch of a button without having to manage lengthy implementation plans and substantial costs.

During recent years, there has been a marked shift towards cloud-based applications. Recent research by International Data Corporation2 shows that worldwide IT spending on cloud services will grow almost threefold, reaching $44.2bn by 2013. Across Europe, the use of cloud computing is growing, with applications being developed in almost every industry.

From CRM applications to corporate e-learning and performance management solutions – the cloud is becoming ‘the norm’.

Up in the cloudsandrea Miles looks at what cloud computing means for organisations in the learning technology space

The evolution of cloud learning In past years, the ‘norm’ for organisations wanting to develop, manage and distribute learning to their employees has been to install and maintain HR and learning systems on the premises behind a corporate firewall. This opens the door to a great deal of work for them and places a significant demand on both resources and costs. Companies incur upfront costs for infrastructure, there are long implementation times and any upgrades or integration work that needs to be undertaken in the future are subject to yet more planning and process. Support for these systems is often hard to come by as learning applications are rarely seen as business-critical by the IT function and will often play ‘second fiddle’ to core business applications.

Most importantly for L&D teams, this is time that could be spent focusing on people’s learning needs rather than getting caught up in administrative and technical discussions with limited IT resources that are often already over-stretched.

Learning system providers, feeling the pain of their clients for many years, are beginning to offer cloud services to make this process a lot easier. Cloud-based learning has been with us for many years though there’s been no definitive definition for it, hence the buzz-word theory. In fact, Software-as-a-Service technology – where software is deployed over the Internet as an on-demand service – has been operating in the cloud for more than a decade.

Why are so many organisations turning to the cloud? With the recent recession and pressure on training budgets, companies feel compelled to adopt more effective business solutions to deliver a higher return on investment. Many companies have turned to cloud-based solutions, and those delivered as SaaS to reduce their total cost of ownership.

Edvantage group CEO, Thomas Berglund attributes this trend to the need for quicker, more

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flexible and low-cost solutions: “Clients have turned to cloud learning because it is quicker and more cost effective to deploy than on-premise solutions or simply because employees need access to learning from home and this isn’t available through the company firewall. The cloud model is more flexible and on-demand at a point that suits their audience.”

Often there is confusion about where SaaS technology stops and cloud begins, but they are two different entities. In the cloud is where the delivery of SaaS happens but a cloud provider doesn’t necessarily provide you with SaaS technology.

With SaaS, there is no hardware or software to install or maintain, so organisations don’t need to think about the technological infrastructure having an impact on their IT resource. The application is provided in the cloud by a vendor. It’s a way of outsourcing your technology but still having total control of your data. Applications are available on demand, when and where you need access to them.

How are organisations using cloud learning?The benefits don’t just stop at the technological infrastructure. Many companies are choosing to use cloud learning to relieve the pressure on internal L&D teams when creating and distributing e-learning courses.

The main use of the cloud in the learning industry is in the delivery of courses using a learning management system but it is also used alongside content authoring tools. Using cloud

strategies, organisations can easily scale their technological requirements to meet the demands of the business.

Scalability (cloud learning for LMS) Cloud-based learning and performance systems are more scalable than the traditional infrastructures. For example, spikes in demand during the roll-out of corporate-wide learning programmes are handled automatically – gone is the worry of crashing core business systems.

Scalability is also key for organisations looking to develop and grow. Using cloud-based systems allows scaling to any number of users without any interruption to the service.

Integrating ‘best-of-breed’A key trend in cloud computing and cloud learning is the recognition by the industry that bringing together best-of-breed applications in the cloud supports their wider business strategy. There is no ‘one-size-fits-all’ application as the remit is too broad and the R&D costs to sustain a technology application on this scale are too large.

Technology partners are specialising in core areas of expertise and aligning themselves with strategic partners in the cloud to support the wider business needs.

Learning no longer sits in isolation from talent management systems, recruitment systems and the like – organisations discussing human capital work on ‘entry to exit’ strategies – an employee takes a journey with the company and

32 April 2011 www.trainingjournal.com

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References

1 Accenture Cloudrise: Rewards and Risks at the Dawn of Cloud Computing (2010)

2 http://www.idc.com/prodserv/idc_cloud.jsp

that journey needs to be seamless. The drive for integration of learning management systems, talent management systems, recruitment systems or any other enterprise resource planning system are made much easier using standard methods of data exchange.

A large telecom company, and Edvantage group client, is using this approach to simplify user access and identity management. Data is automatically exchanged between the LMS and the federated identity system. Employee data stays up-to-date without duplicating data entry and employees don’t have to re-enter log ins and passwords to get access to the LMS.

Not only is this a smart solution for keeping administration costs down, it also improves usability.

Cloud computing to deliver informal learningA great deal of learning time is spent on informal learning; collaborating and sharing videos and documents, blogging and conversing online – all using cloud-based applications. Cloud computing helps formal and informal learning converge, improving the ways companies can support their people by bringing together many learning methods into one space. Cloud learning supports any-time, anywhere learning, putting the learner in control and improving learning engagement – “I can learn at home in my slippers” is a favourite testimonial of mine, from an employee who opted to up-skill himself in his own time.

Employees are beginning to use a variety of social learning tools and applications to get the most out of their training, but they still have an essential need for targeted learning connected to

their job performance and, ultimately, the business goals. So it makes sense to have everything in the cloud. If not, it’s much harder to combine tools and applications that workers are using to learn, whether it’s formally, on the job, or not.

When resources are not cloud-based, it is harder to integrate them into a seamless solution – and that’s what it takes to make good learning fit into the normal flow of the workday. Put everything in the cloud and everything works better together. All types of learning, from classroom to e-learning and social learning, can be managed from one platform. Workers will adopt the tools faster and use them more effectively.

Content creation in the cloudAuthoring tools that are hosted in the cloud are helping remote workers collaborate to create better content faster. Companies can capture expert knowledge from multiple sources, and instantly make it available. Content created outside the organisation is being updated in the cloud and made available on-demand. Organisations that can tap into it and harness its power will be ahead of the game.

This has clear implications for how L&D teams provide learning and performance. It involves rethinking the way things are done, not just with systems but the entire approach to connecting people, tapping into expert knowledge and building skills.

So, in summary, reduced cost of ownership, flexible commercial models, available 24x7 and best-of-breed integration are just some of the reasons why our clients have moved to cloud learning and many more are joining them on the journey.

Andrea Miles

is MD of the Edvantage group in the UK. She can be contacted atandrea.miles@edvantage group.com