Why are there over 700 LMS vendors?

LMS market, cloud LMS, saas, LMS vendors, why so many lms, fragmentation, vendors, lLMS, Learning management Systems,

Why ARE there so many LMS vendors? Why isn’t the market consolidated like, say, the CRM market (Salesforce)? I’m sharing a post by John Leh of Talented Learning that explores the reasons for this market choice/fragmentation (depending on which way you see it).

There’s a link to the full article below, but this extract goes quite a way towards capturing the candy-store nature of the current LMS market:

Cloud technology has lowered the barrier of market entry for LMS vendors.  New LMS vendors with minimal investment can create a SaaS cloud LMS of limited scope to target a specific business problem, industry or region with a low cost solution … with each new customer, the vendor builds an incremental, predictable, profitable and recurring revenue stream.  Revenue is reinvested in expanding functionality to broaden the vendor’s market and price point.  It’s a great business model, and I know over 100 vendors who think so, also!

Read the article here.

Leave a Reply

Your email address will not be published. Required fields are marked *