The Enterprise Application Market in Higher Education

October 2012

Susan Grajek, Vice President, EDUCAUSE

Questions

Which applications are dominated by a handful of solution providers?

Which have an almost bewildering range of choice?

When is open source a common choice? Which are the most frequently outsourced

applications Which applications are most likely to be

managed by system offices? What types of applications are more – and less

– widespread in higher education?

The Data

The Data

2011 EDUCAUSE Core Data survey 635 colleges and universities

16 application areas• Financial • Student information• HR/payroll • Alumni/advancement/

development• Library• Course/learning management

(LMS)• Grants management (pre-award)• Grants management (post-award)

• Facilities management• Portal• Administrative data

warehouse/business intelligence• Web content management (CMS)• Faculty/staff e-mail• Student e-mail• IT service/help desk trouble ticket• Customer relationship management

(CRM)

Limitations

Limited to higher education market overall. No trends yet. This is the first year for most

of these data. Data irregularities. Ongoing changes

among vendors. Application

categories need refinement (e.g., email).

Trends Across Application Areas

Installed Based For Applications

Customer relationship management (CRM)

Grants management (pre-award)

Grants management (post-award)

Administrative data warehouse/BI

Facilities management

Portal

Web content management (CMS)

Alumni/advancement/development

Library

IT service/help desk trouble ticketing

Course/learning management (LMS)

Student e-mail

HR/payroll

Faculty/staff e-mail

Financial

Student information

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% of institutions reporting use of this application

Solution Diversity Two inputs

% of market for top five solution providers

Total number of solution providers

Most homogeneous LMS Student information Faculty/staff e-mail Alumni/advancement

Most diverse CMS IT help desk Facilities

Web content management

Grants (pre-award)

Facilities management

Help desk ticketing

Grants (post-award)

CRM

Data warehouse

Portal

Library

HR/payroll

Financial

Student e-mail

Alumni/advancement/development

Student information

Faculty/staff e-mail

LMS

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

0 10 20 30 40 50 60 70 80 90 100

37%

45%

47%

50%

52%

56%

56%

58%

79%

79%

82%

85%

85%

87%

89%

94%

89

34

90

77

34

34

31

32

58

47

31

37

33

24

22

24

pri_2

Percentage of market owned by top-five providers

Solution Diversity: The Long Tail

Faculty/staff e-mail

Portal

Financial

Administrative data warehouse/BI

Customer relationship management (CRM)

Student e-mail

Course/learning management (LMS)

IT service/help desk trouble ticketing

Grants management (pre-award)

Web content management (CMS)

Alumni/advancement/development

Grants management (post-award)

Student information

Facilities management

HR/payroll

Library

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

59%

59%

61%

65%

65%

65%

67%

68%

71%

73%

76%

76%

79%

80%

81%

88%

% of solution providers at fewer than four institu-tions

Open Source

Open source is most widespread in LMS and CMS Moodle and Sakai among

top 5 LMS Drupal #2 CMS

Other open source leaders COEUS/Kuali in grants

pre-award and post-award JASIG uPortal in Portal RT in IT help desk LMS

Web content management

Portal

Grants (pre-award)

Help desk ticketing

Grants (post-award)

Student e-mail

Faculty/staff e-mail

Library

Financial

Facilities management

Data warehouse

HR/payroll

Student information

Alumni/advancement/development

CRM

0% 5% 10% 15% 20% 25% 30% 35% 40%

26.0%

26.0%

12.0%

10.0%

6.0%

6.0%

5.0%

2.0%

1.0%

1.0%

0.5%

0.3%

0.2%

0.2%

0.0%

0.0%

Homegrown

Most common for grants management (pre- and post-)

Portal Data warehouse

LMS

Web content management

Portal

Grants (pre-award)

Help desk ticketing

Grants (post-award)

Student e-mail

Faculty/staff e-mail

Library

Financial

Facilities management

Data warehouse

HR/payroll

Student information

Alumni/advancement/development

CRM

0% 5% 10% 15% 20% 25% 30% 35% 40%

1%

11%

16%

34%

11%

31%

1%

1%

6%

7%

12%

16%

8%

9%

5%

6%

Application Management

In-House is the most common Across the 16 applications, median 71% of

institutions manage the application in-house (ranging from 44% to 91%, depending on application type)

System office management next most common Median 21%, ranging from 3% to 33%

Outsourced management least common Median 7%, ranging from 2% to 43%

Market Shares

Student Information Systems

% of institutions using 99%% outsourced 2%

% managed by system office 28%

% of market owned by top 5 providers

87%

HR/Payroll

% of institutions using 98%% outsourced 8%

% managed by system office 31%

% of market owned by top 5 providers

79%

Financial

% of institutions using 99%% outsourced 2%

% managed by system office 33%

% of market owned by top 5 providers

82%

Faculty/Staff E-Mail

% of institutions using 98%% outsourced 8%

% managed by system office 8%

% of market owned by top 5 providers

89%

Student E-Mail

% of institutions using 97%% outsourced 43%

% managed by system office 13%

% of market owned by top 5 providers

85%

Course/Learning Management Systems

% of institutions using 97%% outsourced 19%

% managed by system office 22%

% of market owned by top 5 providers

94%

IT Service/Help Desk Trouble Ticketing

% of institutions using 95%% outsourced 9%

% managed by system office 11%

% of market owned by top 5 providers

50%

Alumni/Advancement/Development

% of institutions using 86%% outsourced 5%

% managed by system office 6%

% of market owned by top 5 providers

85%

Library

% of institutions using 86%% outsourced 18%

% managed by system office 32%

% of market owned by top 5 providers

79%

Web Content Management

% of institutions using 81%% outsourced 7%

% managed by system office 3%

% of market owned by top 5 providers

37%

Portal

% of institutions using 75%% outsourced 4%

% managed by system office 11%

% of market owned by top 5 providers

58%

Facilities Management

% of institutions using 66%% outsourced 16%

% managed by system office 19%

% of market owned by top 5 providers

47%

Administrative Data Warehouse/Business Intelligence

% of institutions using 62%% outsourced 2%

% managed by system office 24%

% of market owned by top 5 providers

56%

Grants Management: Pre-Award

% of institutions using 38%% outsourced 4%

% managed by system office 22%

% of market owned by top 5 providers

45%

Grants Management: Post-Award

% of institutions using 40%% outsourced 5%

% managed by system office 23%

% of market owned by top 5 providers

52%

Customer Relationship Management

% of institutions using 35%% outsourced 18%

% managed by system office 15%

% of market owned by top 5 providers

56%

EDUCAUSE CENTER FOR APPLIED RESEARCH

ECAR Research

About 30 reports annually Original research Member research Third-party research from Gartner and

CHECS Research is restricted to subscribers

Reports initially restricted Other materials permanently restricted

2012 Research

Analytics

Community College IT

Students’ Use Of Technology

Research Computing

Enterprise Application Marketplace

Measuring User Satisfaction

ERP Cost Drivers

2013 Research Under Consideration

Consumerization of IT Student Technology Use Higher Education IT Workforce Measuring the Cost of IT E-Learning Update on Mobile IT

Thank You!Susan Grajek