For press inquiries contact:

Bersin & Associates Announces Latest Research Study of Learning Management Systems Market

Still-growing market at $583 million and evolving to encompass talent management and SaaS technologies; Market share leaders emerging

July 11 , 2007

Bersin & Associates, the only research and advisory firm solely focused on What Works® in enterprise learning and talent management , today announced the availability of its newest research study, Learning Management Systems 2008: Facts, Practical Analysis, Trends, and Vendor Profiles. The 217-page report analyzes the LMS market from multiple perspectives such as market size and growth by segment; implementation models and costs; and new capabilities for Web 2.0, content management, analytics, and search. The report also details the impact of performance and talent management and software-as-a-service (SaaS) trends.

The study includes a comprehensive view of the vendor landscape with analysis of 25 LMS vendors by product features, services, market share, industries served, number of customers, and growth rate. The studys unique MarketMap positions vendors in terms of ability to scale and market presence, which represents a vendors size and growth rate.

Over the last 10 years, LMSs have evolved into very sophisticated and complex enterprise applications. These systems are now morphing into strategic platforms for on-demand learning and talent management, said Josh Bersin, president of Bersin & Associates. The market remains red hot. Most organizations now realize that an LMS will drive tremendous enterprise value. 

Following are representative findings from the report:

  • The overall LMS market is now at approximately $583M, a 21.5% increase in size since Bersin & Associates last LMS study published in 2006. Growth is driven by the increasing importance of corporate training and talent management, the continued need for e-learning and other forms of electronic content, and the critical support role of LMS applications, and the demand for systems that manage compliance and customer training.

  • The greatest growth continues to be in the mid-market segment (companies with 1,000 to 10,000 employees). The report estimates that this segment grew by 55.8% over the last year in the United States. Global enterprise and enterprise segments also grew, by 17.2% and 25.7% respectively. Only the federal government segments growth declined (30.8%).

  • The market still shows significant churn. Of companies planning to consolidate LMSs within the next two years, approximately 65% said they are likely or somewhat likely to switch LMS vendors.

  • Outsourced and on-demand (SaaS) solutions are in strong demand because of lower operational costs and faster implementations. Of companies that purchased LMSs in 2006, 61% chose either hosted or completely outsourced solutions.

  • Two LMS vendors, Saba and SumTotal, have broken from the pack in terms of market share, with each now commanding more than 10% share. Oracle and SAP have also grown their market shares significantly over the last 18 months. While there is still room for smaller vendors to grow, analysts believe that the increased level of investments required will make it more difficult for small companies to compete.

Following are the 25 vendors profiled in the report: American Research Institute (ARI), Blackboard, Cornerstone OnDemand, Generation 21, GeoLearning, GeoMetrix, Gyrus, KnowledgePlanet, Learn.com, MediaDefined, Meridian KSI, NetDimensions, Oracle, Outstart, Plateau, RISC, Saba, SAP, SkillSoft, Softscape, SumTotal, Technomedia, TEDS, Vuepoint, and WBT Systems.

Our goal is to give corporate buyers and LMS users a bible if you will a complete reference for all aspects of learning management systems. This research helps readers benchmark their current systems, understand trends, select new systems, and learn best practices in important areas such as system governance, content management, talent management integration, and system support, said Karen OLeonard, principal analyst and primary author of the study.

The LMS 2006 study is based on more than 3,000 surveys and more than 200 customer interviews conducted in 2006 and 2007, as well as detailed briefings with all major LMS vendors. Webinars highlighting report findings will be held on July 31, at 2:00 p.m. EDT, and on August 15, at 2:00 EDT. To register, go to http://events.interwise.com/?p+500996&t=1&s+bersin (for July 31) or http://events.interwise.com/?p=500997&t=1&s=bersin (for August 15).

For more information on Learning Management Systems 2008, go to www.bersin.com/lms. The study is available at no cost to Bersin & Associates research members. Non-members can purchase the study for $1,495 or can purchase it along with the recently published 2007 LMS Customer Satisfaction for $1,695.

About Bersin & Associates

Bersin & Associates is the only research and advisory consulting firm focused solely on research in enterprise learning and talent management. Bersin & Associates’ WhatWorks® research and research-based services are designed to deliver actionable direction and to help improve operational effectiveness and business impact.

Bersin & Associates research members gain access to a comprehensive library of best practices, case studies, benchmarks, and in-depth market analyses designed to guide professionals in making fast and confident decisions. Research areas include planning and strategy, learning programs and delivery, talent management, technology and infrastructure, and measurement and analytics. Member benefits include in-depth advisory services, access to proprietary webcasts, on-site analyst visits, and strategic workshops. For more information, go to www.bersin.com or call 561 819 6213.

 

###