Elearning - April/May 2008 - (Page 29)

LMS’s 2008: What You Need to Know CONTINUED GROWTH WILL BE FUELED BY THREE PRIMARY FACTORS B Y C H R I S H O WA R D The LMS market has grown considerably over the last few years, because organizations of all sizes now realize that they need some form of learning management solution. In 2004 (when Bersin & Associates published its first report on the U.S. market), we forecast LMS vendor revenues at $380 million. In 2005, the revenues increased to $480 million. In 2006, despite consolidations and mergers, the market reached approximately $583 million (see Fig. 1). This article explores some of the underlying business drivers behind this growth and the implications for both buyers and solution providers. The LMS market is still growing steadily, although this growth has slowed slightly from 26 percent last year to 21 percent this year. The slowdown in the market is due partly to saturation in the global enterprise market and some commoditization of learning management systems, as vendor feature sets have become more and more similar in recent years. This is still a buyer’s market; multiple vendors compete for most contracts, putting pressure on vendors to keep pricing moderate. We forecast continued growth in the LMS market, fueled by three primary factors. >>Key corporate personnel now clearly understand the important role of learning management systems. E-learning is no longer something new — it is a daily part of the life of a training professional. In fact, a recent study showed that nearly 30 percent of all formal training hours are now delivered through self-study online or virtual classroom methods. Today, compliance training is critical to most large businesses. Cost often justifies the LMS purchase, as the LMS is critical to managing and tracking these programs. Our research continues to point out that the LMS has become far more than an administrative tool for training; well-implemented learning management systems can improve corporate effectiveness and efficiency by 25 to 35 percent. Elearning! April / May 2008 29

Table of Contents Feed for the Digital Edition of Elearning - April/May 2008

Elearning - April/May 2008 Editor's Note Contents News Targeting Africa Locating Courseware People in the News Upcoming Events Deals Trendlines Web Services Building a Learning Culture Measuring the Learning Experience Making Learning Fun and Social LMS's 2008: What You Need To Know Learning Leader: CA Case Study: AVI Case Study: IBM Case Study: QualComm WBS Case Study: National Center for State Courts Case Study: Grundfos Pumps Case Study: Virginia Tech Pop Quiz Last Word

Elearning - April/May 2008

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