Bersin & Associates Announces Comprehensive Research Study of Learning Management Systems Market; Overall Market Growth of 28% in 2005; Despite Mergers Still No Clear Market Leader.

OAKLAND, Calif. -- Bersin & Associates, the only research and advisory firm solely focused on enterprise learning and its organizational impact, today announced the availability of its newest research study, "Learning Management Systems 2006: Facts, Practical Analysis, Trends, and Vendor Profiles." The 145-page report analyzes the LMS market from multiple perspectives such as market size by segment, market growth, penetration rate by segment, and vendor market share by revenue and license revenue. The report also details key technology trends and features, implementation best practices, benchmark costs of implementation and support; the role of e-learning suites and LCMS solutions, and the growing role of performance and talent management.

The report includes a detailed view of the vendor landscape - with analysis of 22 vendors by product, markets served, market share, number of customers, and growth rate. MarketMaps(R) enable buyers and consultants to identify a specific vendor's strengths and overall market position.

"While learning management systems have been around for almost ten years, the LMS market continues to rapidly grow and change," said Josh Bersin, president and founder of Bersin & Associates. "Organizations now recognize that LMSs can be strategic systems and many are building human capital and talent management strategies around the platform. In response, vendors are raising the bar for functionality and adding features and complementary offerings for content development, content management, collaboration, virtual classroom, and competency management. As this evolution takes place, learning and HR managers continue to struggle with issues related to implementation and enterprise-wide adoption, such as system migration, integration, governance, and change management."

Following are representative findings from the report:

--The overall LMS market is now at approximately $480M, a 26% increase in size since Bersin & Associates' last LMS study published in June 2004. Growth is driven by the availability of proven technology, continued growth in e-learning (a 2005 Bersin & Associates survey of U.S. organizations finds 28% of training hours are now delivered online), and recognition that learning management systems do facilitate training effectiveness and efficiencies.

--The greatest growth appears in the mid-market segment (companies with 1,000 to 10,000 employees). The report estimates that this segment grew by 40% over the last year in the United States. Vendors such as CornerstoneOnDemand, GeoLearning, and Learn.com have developed focused strategies to penetrate this market. Lower cost solutions have also opened the market to non-profit organizations, state and local governments, and other buyers with limited budgets and technical resources.

--37% of all implemented LMSs are hosted by LMS vendors or third parties. Bersin & Associates research finds that organizations with hosted solutions can reduce cost of implementation and ownership by 20 to 40% on a per-learner basis.

--The enterprise and global enterprise market segments are most competitive. The three largest LMS vendors, Saba, SumTotal Systems, and Plateau, comprise approximately 29% of all LMS license revenue - even after major acquisitions by Saba and SumTotal Systems. The lack of an established market leader, combined with ongoing market churn (Bersin & Associates research finds that 34% of large organizations are considering purchasing new systems in the next two to three years) means that the market still offers opportunity for existing vendors and new market entrants. The major ERP providers Oracle and SAP now have established LMS offerings but neither has achieved significant market penetration.

Twenty-two vendors are profiled in the report: Blackboard, Cornerstone OnDemand, Generation 21, GeoLearning, GeoMetrix, ElementK, KnowledgePlanet, Learn.com, Meridian KSI, NetDimensions, Oracle, Outstart, Plateau, RISC, Saba, SAP, SkillSoft, SumTotal Systems, TEDS, Thompson NETg, Vuepoint, and WBT Systems.

The LMS 2006 study is based on more than 2,000 surveys and more than 100 customer interviews conducted in 2005, as well as detailed briefings with all major LMS vendors. A free webinar highlighting report findings will be held on Friday, January 27, at 2:00 p.m. Eastern Standard Time. To register, go to http://events.interwise.com/?p=500523&t=7&s=bersin.

For more information on "Learning Management Systems 2006," go to http://www.bersin.com/lms. The study is available at no cost to Bersin & Associates research members. Non-members can purchase the study for $1,295.

About Bersin & Associates

Bersin & Associates is the only research and advisory firm solely focused on corporate-learning with a comprehensive research program targeted to the needs of learning professionals and executives. In 2001, Bersin & Associates introduced the What Works series, primary research that offers learning and HR practitioners factual and practical insight that can improve program effectiveness and results, reduce costs, and avoid time-consuming and costly mistakes. The company specializes in six research areas: planning and strategy, blended learning, content development, learning management systems and infrastructure, measurement and analytics, and talent management. The company develops industry-leading research studies and provides advisory services to corporations and e-learning vendors. For more information, go to www.bersin.com or call [phone].