I had an opportunity to listen to a seminar by Bersin & Associates earlier today and they put up an interesting slide on the growth drivers as well as challenges in the LMS market.
So what are the growth drivers in this space?
- Heavy demand for eLearning, employee onboarding, and skill development for a multinational employee base
- Explosion in demand for social learning, collaborative learning, and knowledge sharing
- Innovative Startups that are coming up with niche LMS products, and Moodle, are disrupting the market through innovative products
It’s no coincidence that we are finding good traction for Sify’s LiveWire LMS platform as companies are looking for a hassle free way to get a LMS platform up and running without long drawn implementation cycles.
According to Bersin and Associates, key factors that are negatively impacting growth in this segment are
- There are lots of legacy implementations that continues to remain operational
- Content integration has slowed new LMS implementations
- Vendors are grappling with legacy LMS products and are slow in delivering on-demand and contemporary products.
- There are very few LMS platforms that offer true collaboration
I believe growth through acquisition, as attested by large players like Success Factors and SumTotal, has made life difficult for customers as well as vendors. This trend has succeeded creating lot’s of frustration among the buyer community (I guess this what vendors call as “value”) . What started out as pure play LMS platforms have morphed into complete talent management platforms and there is very little differentiation among competing product suites.