The Emerging Market for Web-Based Training, 1996-2002 Section 2
Ellen H. Julian Marla M. Capozzi
Report #15602 - March 1998

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Full Document Section 2

Supplier Profiles

This section presents comparison charts of companies within each of the market segments: content, authoring software, applications software, and training management software. Detailed summaries of these companies are presented in Tables 1-22. The companies presented within these charts are not comprehensive with regard to the industry, but rather are representative of the growing segments and the companies forming within each. It should also be noted that each of these companies could compete in more than one category.

Observations

Within each of the four market segments, the following defining characteristic categories emerged: content, authoring software, applications software, and training management software.

Content Characteristics

The following are characteristics common to the content providers:

  • Most Web-based delivery began in 1996
  • Focus began with IT content, but plans include expansion into other content areas such as business skills and K-12
  • Moving away from a CD-ROM medium to Web-based delivery options
  • No standard pricing model has emerged
  • Expanding value-added services such as customization, consulting, and mentoring rather than selling standalone titles

    Authoring Software Characteristics

    The following are characteristics common to the authoring software providers:

  • Products moving from pure authoring to include other features that assist with management and storage of titles
  • Moving to ease integration with other products
  • Pricing ranges from $250 to $5,000 for the authoring software
  • Expanding value-added services such as customization and consulting

    Applications Software Characteristics

    The following are characteristics common to the applications software providers:

  • All companies surveyed are private, venture-capital funded startups with the exception of Lotus LearningSpace.
  • Majority of companies were established after 1994
  • Pricing models are based on number of users; however, some companies charge differently for developer and user license fees
  • Majority are based on the WinTel platform; however, some are platform independent

    Training Management Software Characteristics

    The following are characteristics common to the training management software providers:

  • All companies surveyed are private
  • No clear pricing model has emerged; some companies sell individual licenses, others sell licensed based on concurrent users
  • All operate on more than one platform
  • Expanding value-added services such as customization and consulting

    Table 1 - Content Provider: CBT Systems Ltd.

    XXXX

    Details

    Web site

    www.cbtsys.com

    Company statistics

    Established in 1984; public; approximately 600 employees

    Current content focus

    Information technology (Internetworking, Oracle, Microsoft, Marimba, MIS, SAP, Lotus, PowerSoft, Java, Informix, Novell, Netscape, Cisco, IBM)

    Web-based titles

    · Internet and intranet skills
    · Designing interactive Web applications
    · Continuing Java and JavaSoft development
    · Understanding and applying Internet concepts
    · Internetworking overview
    · An overview of Java
    · Web authoring and publishing
    · Network management and operations overview
    · Java for C++ developers
    · Principles of e-commerce
    · Telecommunications essentials
    · Object-oriented principles and Java
    · Setting up a Web site
    · PC concepts in a networking environment
    · Introduction to the Java language
    · Microsoft ActiveX technologies
    · Essentials of Windows NT
    · Data communications: networks and standards
    · Anatomy of Java classes

    Web-based products

    · CBTWeb 4.0: A technology that enables courseware to be deployed from a Web server on an intranet (or Internet)
    · CBTCampus 1.0: A graphical user interface that is designed as a "campus" and has options for support, services, a library, and a message center (for students and administrators)

    Percentage of revenue represented by Web-based product sales

    100%; all CBT Systems products are designed for Web deployment

    Delivery options

    CD-ROM; LAN w/CBTCampus; Intranet with CBTWeb or CBTCampus

    Future plans

    · BackOffice solutions
    · Mentoring on Novell and Cisco Curricula
    · Project management
    · Mainframe software (i.e., COBOL, DB2)
    · Telecom and more internetworking

    Other services

    · ADM Global lField Support to help drive CBT within corporations and aid in implementation planning
    · Implementation specialist to consult and install the most appropriate deployment products based on internal capabilities


    Source: International Data Corporation and CBT Systems Ltd., 1998

    Table 2 - Content Provider: DigitalThink Inc.

    XXXX

    Details

    Web site

    www.digitalthink.com

    Company statistics

    Established in 1996; private; 45 employees
    Funded by Hambrecht & Quist, Adobe Ventures, Texas Instruments Ventures, Walden Group, and Intel Corp.

    Current content focus

    Web-based courseware on topics for information technology professionals

    Web-based titles

    Courses are 10-15 hours long, self-paced, tutor supported:
    · Computer programming (Java, C, C++, Perl)
    · Internet literacy (Web design, graphics for the Web)
    · Graphics (Photoshop, Illustrator, PageMaker)
    · Other examples: Intro to Java series, networking with Java series, Hands-on Photoshop, PageMaker series, living with the Internet, NT Server 4.0 Certification series, Sun Java Certification series

    Percentage of revenue represented by Web-based product sales

    In 1996: 100%
    In 1997: 100%

    Delivery options

    Internet, intranet

    Future plans

    · Expand course offerings with tutor support and hands-on practice
    · Focus on systems administrators, programmers, and developers
    · End-user training on Microsoft Office applications

    Other services

    Custom course development and management services for courses that can be comarketed with client companies


    Source: International Data Corporation and DigitalThink Inc., 1998

    Table 3 - Content Provider: Gartner Group Inc.

    XXXX

    Details

    Web site

    www.gglearning.com

    Company statistics

    Gartner Group established in 1979; public; over 2,700 employees

    Gartner Learning established in 1995 as a subsidiary of Gartner Group

    Current content focus

    Information technology and business

    Web-based titles

    Course catalog at http://gartner16.gartnerweb.com/public/static/training/products/course.html

    XXXX

    Client/server networking:
    · Novell NetWare
    · Windows NT
    · Lotus Notes
    · Groupwise

    Desktop:
    · Microsoft Office (95, 97)
    · Lotus (96, 97)
    · WordPerfect

    Languages and tools:
    · Java, Oracle, Powerbuilder, C, C++
    · Object oriented, Visual BasicOperating systems:
    · DOS
    · Unix
    · Windows 3.1
    · Windows 95
    · Windows NT

    Database management:
    · Informix, Sybase, Oracle, SQL
    · Microsoft SQL Server

    Mainframe:
    · DB2SAP R/3 courses

    IT business skills

    Performance advantage sales training

    Internet/intranet

    Web-based products

    Internet Learning Center allows companies to license titles and receive their content using standard Internet browsers
    Enterprise Learning Center (elc.gartner.com) allows companies to deliver courses over corporate intranets
    Learning Organization Information System (LOIS) allows specific course information to be accessed through Skills Management platform

    Percentage of revenue represented by Web-based product sales

    Not available

    Delivery options

    CD-ROM (multimedia), LAN Base TBT, Internet Learning Center (ILC), Enterprise Learning Center (ELC), videotapes, audiotapes (Talking Technology), LOIS Training Management System, LAN/Trak (product for registering, launching, tracking, reporting and managing training)

    Future plans

    Development of content around IT business skills ("Soft Skills")
    Content development will focus on the major corporate technology challenges (i.e., Internet/intranet, ERP, end-user productivity, Windows NT)
    Content development will also focus around specific IT-related job roles (i.e., apps development, networking manager)
    Skills Management Solutions will partner with companies to analyze and assess employee skill gaps, help develop training plans, deliver content

    Other services

    Professional Services Group for consulting engagements, implementation/installation, and custom development
    Instructor-led training
    Membership services group, which provides clients access to Gartner Group research, audio teleconferences on hot training/technology topics
    Best Practice Groups for training-related issues
    Advisory services, benchmarking, Best Practice Groups and IT consulting


    Source: International Data Corporation and Gartner Group Learning, 1998

    Table 4 - Content Provider: McGraw-Hill OnLine Learning

    XXXX

    Details

    Web site

    www.mhonlinelearning.com

    Company statistics

    Established in 1917 (McGraw-Hill); public; 16,000 employees; a Division of the McGraw-Hill Companies
    MHOL division: 19 employees

    Current content focus

    Information technology and business

    Web-based titles

    · Microsoft Certification: Windows NT, Windows 95, networking essentials, Internet
    · Information technology: Web page design, creating interactive Web pages, Web information server
    · Business: Decision making, stress management, time management
    · Programming: Java, C++, Visual Basic, intro to Internet

    Percentage of revenue represented by Web-based product sales

    Not available

    Delivery options

    Internet, intranet

    Future plans

    Java certification, IBM certification, accounting, software applications

    Other services

    Educational publishing, information services, financial services, broadcasting, business publishing, professional publishing, communications, international publishing


    Source: International Data Corporation and McGraw-Hill OnLine Learning, 1998

    Table 5 - Content Provider: NETg

    XXXX

    Details

    Web site

    www.netg.com

    Company statistics

    Established in 1968; public; 350 employees; a subsidiary of Harcourt General Corp.

    Current content focus

    Information technology

    Web-based titles

    · Microsoft MCSE and MCSD certification
    · Oracle certification
    · Novell CNE certification
    · Internet, including Java, HTML, Netscape ONE
    · Lotus Notes
    · Microsoft Office 97 and other business end-user skills
    · SAP R/3 and much more IT-focused subjects, many translated into German, French, Spanish, Portuguese

    Web-based products

    · Learning Object Download: Learning Object approach to downloading courses (or portions of courses) through Web for offline playing on client; 250+ courses available in this format
    · InterNETg: Browser-playable, cross-platform approach; built for cross-platform support of Windows NT, Windows 95, Unix and Macintosh, InterNETg uses no plug-in technologies, relying totally on Java, JavaScript, and HTML; 100 courses currently in beta, with final release scheduled for January 1998
    · Web SkillVantage Manager: Web-based training management software for the deployment and tracking of Web-based courses from NETg and third-party producers; began shipping in May 1997, with hundreds of customer installations as of November 1997

    Percentage of revenue represented by Web-based product sales

    In 1995: 0%

    In 1996: 2%

    In 1997 (projected or to date): 20% (nearly 30% of U.S. revenue, lower abroad)

    Technology-based delivery options

    · CD-ROM and diskette
    · LAN (with or without RealAudio)
    · Learning Object Download: Intranet download
    · InterNETg: Intranet browser playable
    · Internet availability through Oracle's OLA service

    Future plans

    · HR Soft Skills content plus expanded IT skills and translated content
    · Course customization/editing tools
    · Learning Object Archive/Search Engine
    · Extranet access services

    Other services

    Web-based courseware installation, training program implementation support/consulting


    Source: International Data Corporation and NETg, 1998

    Table 6 - Content Provider: Oracle

    XXXX

    Details

    Web site

    www.oracle.com

    Company statistics

    Established in 1977; public; 31,000 employees/1,500+ in Oracle education

    Current content focus

    Information technology

    Web-based titles

    Includes operating systems, programming languages (C, C++, Java, HTML), Internet topics, Oracle products, Microsoft Office and Lotus Notes products -- for developers and end users

    Percentage of revenue represented by Web-based product sales

    Education represents 6% of total Oracle sales ($333 million); percentages for Web-based training are not available

    Delivery options

    · Internet:

    - Online courses: Run using a browser (Microsoft/Netscape) on any platform

    - Offline courses: Download content (requires PC, 486+, 8MB RAM+, VGA+, Win 3.1+)

    · Oracle Learning Architecture (OLA) Online Service is a system for the delivery of interactive, multimedia training over the Internet

    Future plans

    Additional IT content offerings; OLA will be available as a product in 1998

    Other services

    Consulting through the Organizational Change Management group, customized training programs, instructor-led training (largest part), technical seminars


    Source: International Data Corporation and Oracle, 1998

    Table 7 - Content Provider: Street Technologies

    XXXX

    Details

    Web site

    www.streetinc.com

    Company statistics

    Established in 1995; private; 38 employees

    Funded by Charter House Capital and self-funded

    Current content focus

    Information technology and business

    Web-based titles

    100+ titles relating to Microsoft Office 95, 97, NT, Lotus, Adobe, Symantec (ACT), Internet Explorer, Netscape Communicator, and other popular software titles

    Web-based products

    · StreamMaker is a multimedia development platform providing browser access for the developer or end user over the Internet, intranets, and extranets; it compresses 20x the traditional CD into one disc
    · Learning University is a distribution and learning infrastructure that is TCP/IP based; it works best as an extranet or Internet solution on a centralized server

    Percentage of revenue represented by Web-based product sales

    In 1995: 0%

    In 1996: 25%

    In 1997: 100%

    Delivery options

    Internet, intranet, and extranet delivery (using StreamMaker and Learning University)

    Future plans

    Street is working on development partnerships covering the full spectrum of corporate learning needs (computer skills, soft skills, sensitivity, etc.), including K-12, proprietary apps., CPE, CPA; other features and functions typical of CD-ROM development, including drag-and-drop, contact sensitive, branching, and layering; assessment content in all content areas

    Other services

    · For resellers: Consulting, installation, and support; provides services to reseller partners and their customers vs. Direct to corporations; custom development projects with partners
    · For distribution partners: Providing a hosted and administered online learning solution with access to the StreamMaker development platform for generic, proprietary, and custom multimedia projects
    · For development partners: Providing access to a huge and growing distribution channel for generic, proprietary, and custom multimedia development projects
    · For the education market: A multimedia development and distribution platform for universal access


    Source: International Data Corporation and Street Technologies, 1998

    Table 8 - Authoring Software Provider: Allen Communications, A Times Mirror Company

    XXXX

    Details

    Web site

    www.allencomm.com

    Company statistics

    Established in 1981; public (due to Times Mirror ownership); 110 employees

    Product sales/revenue

    · Designer's Edge HTML/Java Link (ships March 1998): Add-on tool to Designer's Edge pre-authoring tool; company anticipates will represent 20% of revenues in 1998 (in add-on revenue to Designer's Edge sales)
    · Quest Net+: Strong revenue (significant increase over 1996) representing 40%; strong sales (company cannot release exact numbers; significant increase over 1996)
    · Manager's Edge 2.0: Company anticipates will represent 20% of revenue in 1998

    Product pricing

    · Designer's Edge HTML/Java Link: Price TBA, priced as an add-on module to Designer's Edge; will be priced on a per-user basis
    · Quest Net+ : $2,495 (commercial); $995 (educational)
    · Manager's Edge 2.0: Price TBA; priced on a per-server or per-student basis

    Technical product installation

    No plug-ins required; courses require a Quest player on the student station; product tracks performance over the Net (runs through the browser)

    Product integration with other training-related software tools/products

    · Designer's Edge works with all of the major authoring tools; this HTML/Java link does not require an external authoring tool; the end product is ready to be delivered over the Net without additional modifications
    · Quest Net+ supports all major audio, video, and graphics packages; courses created are AICC compliant (any management system that complies with AICC standards can be used to track performance)
    · Manager's Edge supports AICC standards, can track any course meeting AICC specifications; it can track performance in any training environment -- classroom, lecture, technology-based -- providing a complete infrastructure for administering and tracking

    Other services

    Allen Communications offers a complete training solution, with training, consulting, full custom development services, integration as needed, and product customization for enterprise design, development, and delivery needs


    Source: International Data Corporation and Allen Communications, 1998

    Table 9 - Authoring Software Provider: Asymetrix Learning Systems Inc.

    XXXX

    Details

    Web site

    www.asymetrix.com

    Company statistics

    Established in 1985; private; 250 employees

    Product sales/revenue

    Not available

    Product pricing

    · ToolBook II Instructor: $2,495
    · ToolBook II Assistant: $1,095
    · IconAuthor: $4,995
    · ToolBook II Librarian: $3,000 per server; per user on a sliding scale beginning at $50

    Technical requirements for product installation

    · ToolBook II Instructor: 486/66, 45MB, 16MB RAM
    · ToolBook II Assistant: 486/66, 35MB, 16MB RAM
    · IconAuthor (Unix): 486/66, 35MB, 16MB RAM
    · ToolBook II Librarian: NT 4.0 or Sun Solaris, Web server, Pentium 166MHz, 15MB, 64MB RAM

    Product integration with other training-related software tools

    Librarian is a learning platform that manages both online and offline training, together with collaboration; it supports courses created in Instructor, Assistant, IconAuthor NetEdition, and HTML. Through its Open Library Exchange interface, it can also manage Web-based training applications and products written in other authoring tools

    Other services

    Consulting, development, training, and technical support


    Source: International Data Corporation and Asymetrix Learning Systems Inc., 1998

    Table 10 - Authoring Software Provider: Macromedia

    XXXX

    Details

    Web site

    www.macromedia.com

    Company statistics

    Established in 1985; public; 500 employees

    Product sales/revenue

    $80 million revenue for Web-based products representing 66% of total sales ($120 million)

    Product pricing

    $250-3,000 for authoring

    $5,000-250,000 for Web management

    Technical requirements for product installation

    · Windows NT or Windows for management
    · Mac or Windows 95/NT for authoring

    Product integration with other training-related software tools and products

    AICC compatible; management works with content from ToolBook, IconAuthor, and Quest

    Other services

    Training, installation, integration, and needs assessment


    Source: International Data Corporation and Macromedia, 1998

    Table 11 - Applications Software Provider: Centra Software

    XXXX

    Details

    XXXX

    XXXX

    Web site

    www.centra.com

    XXXX

    XXXX

    Company statistics

    Established in 1995; private; 60 employees
    Funded by North Bridge Venture Partners, Burr Egan Deleage & Co., Commonwealth Capital, and Scripps Ventures and idealab!

    XXXX

    XXXX

    Product pricing

    $70 per seat

    XXXX

    XXXX

    Technical requirements for product installation

    Requirement

    Server

    Participant

    Hardware/software:

    · Pentium 200, Windows NT
    · 64MB RAM, 350MB free disk space plus space for all course content

    · Pentium 90, Windows 95 or NT 4
    · 16MB RAM
    · 800 x 600 x 256 color display, speaker microphone

    XXXX

    Web software:

    · Netscape Enterprise
    · Netscape FastTrack
    · Microsoft Internet Server

    · Netscape Navigator
    · Microsoft Internet Explorer

    Product integration with other training-related software tools and products

    All native Web and AICC compliant tools

    Other services

    Education, consulting, integration, and installation


    Source: International Data Corporation and Centra, 1998

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