The Game Changers

The Game Changers

The Cloud is changing the way Organizations, Employees and Partners interact and collaborate. Using Cloud technology facilitates greater collaboration and increases Organizations’ efficiency and effectiveness. Within the Cloud solutions universe, Software-as-a-Service (SaaS) is playing a major role. The top four cloud computingrelated projects on which enterprises are currently working are: Internal Private Cloud (35%), Cloud Provider Assessments/Strategy Planning (33%), Infrastructure-as-aService (IaaS) (31%) and SaaS (30%).

According to Gartner, SaaS will continue to experience healthy growth through 2014 and 2015, when worldwide revenue is projected to reach around $22 billion. While there are many options available in terms of SaaS applications for enterprises, across the entire business spectrum, Siemer currently identifies three types in particular:
  • CRM SaaS: CRM SaaS is, by, far the most requested application across enterprises worldwide. 40% of all CRM software sold in 2012 worldwide was SaaS-based.
Enterprise Resource Planning SaaS: The SaaS Enterprise Resource Planning (ERP) market is dominated by SAP and Oracle, which command 25% and 13% of the market respectively. However, there are other vendors operating in the field and these are expected to continue to make progress over the coming years.
  • Human Resources Management SaaS: Human Resources Management (HRM) SaaS manages all areas of HR activity in a Cloud-computing environment within a market that is currently worth US$ 10 billion and is growing at a rate of between 18% and 22% every year. Gartner has stated that many Enterprises are now replacing their legacy systems with SaaS-based CRM systems.
Enterprise clients also report that SaaS-based CRM systems are delivering new applications that deliver complementary functions which are not possible with older, legacy CRM platforms. Various surveys and analyses into the reasons behind this big growth in SaaS agree on at least three. SaaS brings:
  1. Speed of implementation 
  2. Savings on capital expenditures 
  3. Savings in terms of operational expenses.
The SaaS model is also playing a major role in helping to increase the size of the E-Learning market. Small and Medium-sized Enterprises (SMEs), as well as large Corporations are making the adoption of a SaaS LMS a key priority. In particular, large Corporations are switching to a SaaS LMS from in-house LMS solutions or they are now using a SaaS LMS as a secondary learning system for special training purposes.

The E-Learning market can still be considered a “niche” segment within different HR macro segments. In particular, E-Learning is subjected to the influences of sales trends related to smart connected devices and the Internet megatrend (that is, the spread of the Internet in the world). This report has already mentioned the close link that E-Learning has with the broader Educational market. In addition, there are links between E-Learning and the current growth of digital publishing (self-publishing and e-textbooks). However, the digital publishing market is not -- as yet -- greatly affecting the E-Learning market. Smartphone devices are now generally considered to be valuable assets that help improve work productivity.

Recent research has shown, for example, that smartphone owning U.S. workers are considered “more productive” on the global scale. On average, 59% of U.S. workers work more than 50 hours a week -- and they say that they frequently rely on their smartphones as productivity tools (or performance enhancing aids) during their working week. These figures about employees’ behavior correlate with smartphone sales data. According to IDC, the number of PCs will fall from 28.7% of the device market in 2013 to 13% in 2017.

Tablets will increase from 11.8% in 2013 to 16.5% by 2017, and smartphones will increase from 59.5% to 70.5%. Interestingly, a Forrester forecast claims that 18% of tablet sales will come from business buyers rather than these tablets being bought for personal use. This sales data makes the Mobile Learning sector increasingly interesting -- especially so since, in the last two years, Mobile Learning has overwhelmingly been affirmed as a new: Popular choice as a method of learning delivery Business opportunity Strategy for human resource management The new frontier to address is the trend towards Bring Your Own Device (BYOD). At present this is a slow trend but it’s one that is likely to be ongoing for some time. BYOD refers to individuals taking their personal devices to workplaces. These are usually mobile devices. Increasingly, they seem to be being used to help their owners perform work activities (including formal training), both in and out of the workplace. Smartphones are the most common examples of these devices but employees often also use their tablets or laptops in the workplace. It’s also important not to overlook the Internet megatrend, especially since E-Learning is a part of this megatrend. The Internet opens doors to new learning technologies.

The internet megatrend enables people to exchange and create increasingly more information and is also an important source of knowledge building and sharing. The internet also opens the doos to new learning technologies, systems and methods.

However, when it comes specifically to E-Learning, the countries with the highest growth rates that are driving the bulk of the growth in this segment are not in Asia.

According to Ambient Insight, the growth rates in nine of these countries is above 30%. This is more than four times the worldwide aggregate growth rate.