Chief Learning Officer - October 2007 - (Page W2)

Advertisement The adoption rate for on-demand learning management systems is skyrocketing. According to a recent Gartner research report, SaaS technology has grown significantly and will continue to do so. “Ease of use, rapid deployment, limited upfront investment in capital and staffing, plus a reduction in software management responsibility all make SaaS a desirable alternative to many on-premises solutions, and they will continue to act as drivers of growth,” stated Sharon Mertz, Gartner research director. According to Gartner, SaaS revenue will surpass $5.1 billion — a 21 percent growth over 2006 revenues. In terms of total market share, Gartner reports SaaS adoption is close to 70 percent in e-learning and Web conferencing. appealing to HR and training professionals for several reasons, including its lower startup costs, reduced total cost of ownership and rapid deployment. Bersin & Associates research indicates ondemand solutions are highly effective and scalable. Web services technology makes integration with a company’s system easier than ever and speeds up the implementation time frame. SaaS offers several advantages over traditional integrated on-premises solutions. According to Bersin’s findings, the actual functionality available in a traditional, on-premises suite is much more limited than that available from focused, best-ofbreed vendors. For example, development tools are widely available from many specialized companies. And although adequate, the LMSprovided tool set is missing some features you find in a focused, best-of-breed, thirdparty tool. Purchasing a suite, then, might force you to trade perceived benefits for a system that might not actually meet your company’s needs. Although a single-vendor solution might seem to provide higher levels of accountability and control, it can create the opposite problem: If a suite provider cannot meet an organization’s needs, the buyer essentially has put all its eggs into one basket and might not have recourse when part of the system does not meet the company’s needs. In addition, the human capital and IT infrastructure required to implement and maintain this type of solution is high, and it might slow deployment, thereby eliminating or significantly reducing return on investment. With an on-demand SaaS solution, the vendor takes responsibility for delivering the system and implementing upgrades. Vendors own, deliver and manage SaaS technology remotely, leaving maintenance and upkeep with the vendor — not the client. Benefits of SaaS/ Best-of-Breed Providers Compared with traditional on-premises LMS software, the SaaS delivery model is Sources: Research Bulletin/2007. “Enterprise Learning Technology: A New Breed of Solutions.” Published May 19, 2007. Bersin & Associates, Oakland, CA. Dataquest Insight. “SaaS Demand Set to Outpace Enterprise Application Software Market Growth.” Published August 2, 2007. Gartner Inc. Stamford, CT. Sponsored by GeoLearning http://www.geolearning.com http://www.geolearning.com/bp http://www.geolearning.com

Table of Contents Feed for the Digital Edition of Chief Learning Officer - October 2007

Editor's Letter Table of Contents Letters to the Editor Taking the Lead Trends Best Practices Effectiveness Guest Editorial Elements of Social Media Arrive on the Learning Scene Trend Micro: Making Learning More Modular CLO Profile Learning’s Role in Talent Management INTTRA: Using Global Learning to Better Enable Talent Management Operationalizing Communities of Practice U.S. Army: Sharing Lessons from the Field Looking Back, Moving Forward Leveraging Business Data to Develop Strategic Learning Solutions Chrysler LLC: Metrics, Score Cards and Automobiles Advertisers' Index Editorial Resources Connecting the Dots: Recognizing Talent Development Differences at Nonprofits Nonprofits in Health Care: Learning at ENH Case Study Business Intelligence Case Study In Conclusion

Chief Learning Officer - October 2007

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