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The adoption rate for on-demand Learning Management Systems is skyrocketing. Compared to traditional “on premises” LMS software, the Software as a Service (SaaS) delivery model is appealing to HR and training professionals for several reasons, including its lower start-up costs, reduced total cost of ownership and rapid deployment. Many traditional LMS software vendors are jumping on the bandwagon and claim to have a SaaS offering. But what exactly is SaaS and how is it changing corporate learning? Is all SaaS the same? This session will help you separate the hype from reality, and provide an objective litmus test you can apply as you search for, compare and evaluate on-demand Learning Management Systems.
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Selecting an On-Demand LMS
A Litmus Test for Separating Hype from Reality in the World of SaaS
presented by
Will Hipwell
June 6, 2007
Today’s Agenda
• Role of the LMS• Two Deployment Choices• What is SaaS?• Advantages of SaaS• Best Use Case Scenarios for SaaS• SaaS Myths• Litmus Test• Free Resources
Poll #1
Would you say you understand the differences between LMS software deployed on-premises vs. on-demand Software as a Service?
1. Clear as a bell.2. Yes, but I’m no expert.3. Maybe. But not enough to have an opinion.4. Huh?
The Challenge of Enterprise Learning Technology
The LMS is the primary management system for training and development:
• Managing training administration
• Scheduling and resource management
• Reporting
• Maintaining user groups and roles
• Cataloging and tracking electronic content
• Grouping content and user into groups• E-commerce
Evolving Role of the LMS
• Store and manage e-learning content• Deliver integrated assessment and skill libraries• Integrate with other enterprise applications for:
– Learning
– Compliance
– Training Measurement
– Webcasting
– Knowledge Management
LMS Deployment: Two Choices
• Traditional software license sold foron-premises or behind-the-firewall installation
• Software as a Service (SaaS)– ASP/hosted model– True Software as a Service
Poll #2
Do you have a LMS, and how is it deployed?
1. Yes. Installed on-premises behind-the-firewall as traditional software.
2. Yes. SaaS/on-demand solution.
3. Yes. But not sure if hosted or on-premises.
4. No. We do not have a LMS.
What is Software as a Service?
Software solution that is hosted and supported by a vendor as a service, which is accessed by users via the Internet, without the need to deploy and maintain an on-premise IT infrastructure.
Whereas some people associate SaaS with pay-as-you-go subscription pricing, SaaS is more indicative of the hosted deployment model. In fact, SaaS can be priced via subscription, annually or perpetually.
Advantages of SaaS
• Speed to implementation & business impact• Predictability• Faster & higher ROI• Improved overall satisfaction• Direct cost & resources savings• Low cost of entry• Outsourced system & technical expertise• Rapid upgrades/access to updates• Avoid technology obsolescence• Focus & operational freedom• Flexibility• Reduced hassle & risk
The Known• Software
• Implementation & Integration
• Support and IT personnel
• Hardware
• Training
The Unknown Risk• Length and rate of implementation
• Delayed time-to-market
• High deployment risk
• User acceptance and adoption
• Ongoing maintenance & upgrades
• Full application lifecycle operation
Hidden Costs
HardCosts
Licensed vs. SaaSLicensed GeoLearning
On-Demand/SaaS
Acquisition Purchase and pay maintenance. Rent software as a service.
Configuration & Upgrades
You take responsibility; requires IT commitment & investment.
GeoLearning takes responsibility; upgrades happen automatically.
Content Integration You do it. GeoLearning does it.
Systems Integration Complex and costly. GeoLearning does it.
Typical Risks High cost; long implementation. GeoLearning’s proven service & support history.
Best Fit Heavy IT commitment. Cost concerns; high service demands; low or no IT resources.
Satisfaction Fair. High.
Vendors Plateau, SumTotal, Saba, Oracle GeoLearning
Cost Structure Comparison
Best Use Case Scenarios for SaaS
• Cost conscious without surprise expenses• Users external to “the network”• Geographically dispersed audience(s)• Low-to-No IT support/staffing/resources• Best-of-breed approach to total solution• Require high service levels• More than “just software” from a vendor• Abreast of technology advancements• Small training/HR group (divisional solutions)• Flexibility to scale for future growth (quickly)
Five SaaS Myths
• High security
• Proprietary content
• Data security
• HRIS/ERP integrations
• Global enterprises
Is All SaaS the Same?
• BTF vendors adding “on-demand,” “SaaS” or “ASP” to product names.
• Streamlined BTF product retro-fitted for Internet delivery but less functionality
• BTF & SaaS product roadmap are not same• Service Level Agreements (SLAs)• Bersin: 5 to 10 references from production clients
similar to your solutions• ASP…is a 3rd-party now involved?
How is SaaS Changing Corporate Learning?
• 1 in 3 to 1 in 2 of every LMS now being purchased is SaaS/hosted/ASP
• Adoption rates are skyrocketing• Speed & global competition…unwilling to wait
12 months for deployment• Platforms are required to manage more and
more complex business processes• Doing more with less resources• Convergence of learning & performance to talent
Separating Hype from Reality
• Discern between true SaaS and vendors new to the space or jumping on the bandwagon
• Questions to ask of vendors in your search• No right or wrong answers• But answers do shed light on capabilities
and how they match up with your business requirements
• Comfort level
Poll #3
Which best describes your current LMS search status?
1. Searching for SaaS/hosted/ASP
2. Searching for on-premises software
3. Not searching
Litmus Test: Questions to Ask
1. Focus & Core Capabilities2. SaaS % vs. BTF %3. SaaS functionality vs. BTF functionality4. SaaS deployment vs. BTF deployment
methodologies5. Hosting location6. Hosting resources7. Security: physical, network, data
Litmus Test: Questions to Ask
8. Service Level Agreements
9. System Performance
10. Network & System Administration
11. Data integration with others systems
12. Software Upgrades
13. Technical Support Options
14. Content Support Services & Vendor Management
15. Access to Learning Services
Free Resources from GeoLearning
Today’s PPT Slideswww.geolearning.com/june6
SaaS Litmus Testwww.geolearning.com/litmus
Enterprise Learning Technology: A New Breed of Solutionswww.geolearning.com/newbreed
E-Learning Strategy Blueprintwww.geolearning.com/bp
Technology Requirements Checklistswww.geolearning.com/lmschecklistwww.geolearning.com/lcmschecklistwww.geolearning.com/webcastchecklistwww.geolearning.com/talentchecklistwww.geolearning.com/analyticschecklist
Q&A Session
