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Lack of Sales Traction Forces LMS Vendors to Offer Tailored Solutions, Says META Group

  • 25 March, 2004 14:18

<p>New Learning Management System (LMS) Platforms Evaluation Released Today</p>
<p>SYDNEY, Australia. (March 24, 2004) — META Group, Inc. (Nasdaq: METG) today announced the availability of its newest METAspectrumSM In Depth report, covering the learning management system (LMS) platforms market. This market includes products that enable the registration, delivery, tracking, hosting, and administration of learning events. Discretionary funding for this type of solution has been minimal, forcing vendors to consolidate their offerings through solution suites spanning learning content management, course development, and skill management.</p>
<p>“A general lack of available investment capital nearly stopped the growth of the enterprise learning marketplace in 2003,” said Maria Schafer, program director with META Group’s Executive Directions service and co-author of the report. “The current annual growth rate for software solutions is 5%, compared to 40%-45% in 2001. We expect growth to be at 6%-8% through 2004, not re-attaining 15%+ for another couple of years.”</p>
<p>The lack of sales traction is forcing vendors to adapt their solutions to meet targeted and specific client pain points. As a result, key players have focused their respective product development efforts differently, emphasizing a specific component’s strength to attract buyers.
“A sizable playing field is beginning to consolidate. Large ERP and CRM vendors that are seeking new revenue streams are beginning to make their presence felt and will exert greater influence through 2005,” said Carrie Picardi, senior research analyst with META Group’s Content &amp; Collaboration Strategies service and co-author of the report. “LMS vendors are confronted with increasing verticalization and subsequent demand for solutions tailored to specific verticals, as well as enabling more cost-effective and efficient leverage of existing client infrastructure.”</p>
<p>Key Findings and Guidance
The Learning Management System Platforms report evaluated 14 vendors. It found that
robust LMS capabilities are essential for Global 2000 organizations making continuous learning part of their strategies for developing and leveraging talent. Moreover, the report encourages IT organizations to carefully consider stability as well as technology capability when making investment decisions. Learning tools offer great potential for enhancing business productivity and worker engagement, and suite enhancements offer opportunities for gaining visibility into the work process, tracking and enabling improved performance, meeting security and compliance criteria, and reducing learning-related costs.</p>
<p>About the Report
Providing comprehensive, side-by-side vendor comparisons and research, META Group’s Learning Management System Platforms METAspectrumSM In Depth report helps users evaluate the overall performance of IT vendors and their competitive market position as well as compare and contrast the strengths and limitations of each vendor’s product offerings. The evaluation is based on META Group’s METAspectrum methodology, which provides a framework for evaluating or selecting an appropriate IT vendor or product, simplifies the decision process, and enables more effective
technology investments. To learn more about META Group’s METAspectrum In Depth reports or the METAspectrum methodology, visit or call (800) 945-META.</p>
<p>About META Group
META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META Group’s experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit for more details on our high-value approach.</p>
<p>Jessie Shepherd
Markom Marketing
<p>Peter Carr, Vice President, Director Operations
META Group

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