8/4/2019 Ambient IT Training Snapshot - Jan 06
1/27
Ambient Insight LLC
Sam Adkins, Chief Research Officer
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/8/4/2019 Ambient IT Training Snapshot - Jan 06
2/27
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
8/4/2019 Ambient IT Training Snapshot - Jan 06
3/27
Ambient Insight 2006
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.
8/4/2019 Ambient IT Training Snapshot - Jan 06
4/27
Ambient Insight 2006
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
8/4/2019 Ambient IT Training Snapshot - Jan 06
5/27
Ambient Insight 2006
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
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
6/27
Ambient Insight 2006
Total US Education and Training Market 2006across Consumer, Academic, Government, and Corporate Segments
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
7/27Ambient Insight 2006
Total US Education and Training Market 2006-2011across Consumer, Academic, Government, and Corporate Segments
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
8/27Ambient Insight 2006
US Learning Product Demand 2006-2011: CoursewareeLearning Products versus Non-Courseware Learning Products
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
9/27Ambient Insight 2006
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
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
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
8/4/2019 Ambient IT Training Snapshot - Jan 06
10/27Ambient Insight 2006
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
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
11/27Ambient Insight 2006
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
8/4/2019 Ambient IT Training Snapshot - Jan 06
12/27Ambient Insight 2006
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
2006-2011 US IT Training Trends: New Learning TechnologyProducts Cannibalizing Both Classroom and eLearning
8/4/2019 Ambient IT Training Snapshot - Jan 06
13/27Ambient Insight 2006
2006-2011 US IT Training Market Growingby 2.5% Five-year CAGR
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
14/27Ambient Insight 2006
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
8/4/2019 Ambient IT Training Snapshot - Jan 06
15/27Ambient Insight 2006
Major Catalyst for Learning Technology Adoption is ExplosiveUS Growth of Learning Business Process Outsourcing
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
16/27Ambient Insight 2006
The New Stack Demands NextGen Learning TechnologyIntegrating Identity, Collaboration, and BPM Technology
8/4/2019 Ambient IT Training Snapshot - Jan 06
17/27Ambient Insight 2006
SOA Changes Everything: Conventional ApplicationTraining Goes Away with Web Services
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
18/27Ambient Insight 2006
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
8/4/2019 Ambient IT Training Snapshot - Jan 06
19/27Ambient Insight 2006
PersonalizedWorkflows
WorkersModify
ManagersManage & Measure
BPM AnalystsModel
ITsModel
Who Gets Trained in the Presence ofDecision Support andTask Support Embedded in Personalized Rich Clients?
8/4/2019 Ambient IT Training Snapshot - Jan 06
20/27Ambient Insight 2006
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
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
h i d h hif i
8/4/2019 Ambient IT Training Snapshot - Jan 06
21/27Ambient Insight 2006
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
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
22/27
Ambient Insight 2006
Who Gets Trained and How They Get Trained Linkedwith the Evolution of IT and New Learning Technology
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
Wh t Th B i ? I di id l
8/4/2019 Ambient IT Training Snapshot - Jan 06
23/27
Ambient Insight 2006
What are They Buying? Individual versusOrganizational IT Training Buying Behavior
AmbivalentBuyers
CautiousBuyers
StrongBuyers
Ambient Insights 2006 Snapshot of Learning Technology Trends in the US IT Training Industry
8/4/2019 Ambient IT Training Snapshot - Jan 06
24/27
Ambient Insight 2006
8/4/2019 Ambient IT Training Snapshot - Jan 06
25/27
Ambient Insight 2006
8/4/2019 Ambient IT Training Snapshot - Jan 06
26/27
Ambient Insight 2006
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.aspx8/4/2019 Ambient IT Training Snapshot - Jan 06
27/27
Questions and Comments can be emailed to:[email protected]
Ambient Insights 2006 Snapshot ofLearning Technology Trends in the US IT
Training Industry
Top Related