2013 student information systems market trends report overview

2013Student Information SystemsU.S. Higher Education Market

Share,Trends and Leaders

Report Date: April 2013

By Vicki Tambellini and Mary Beth CahillThe Tambellini Group, LLC

Copy Licensed to Higher Education Employee Only. Unauthorized Distribution Prohibited.

Copyright 2013 The Tambellini Group, LLC All rights reserved.

ContentsAcknowledgements .....................................................................................................................................................................1Executive Summary ....................................................................................................................................................................2TTG Higher Education Market Definition ..............................................................................................................................4U.S. Higher Education Market Overview.................................................................................................................................5Market Trends for SIS 2012 Purchases .....................................................................................................................................6Making a Vendor Selection ......................................................................................................................................................10U.S. Higher Education 2012 Vendor Market Share ..............................................................................................................11SIS Vendor Market Share ..........................................................................................................................................................11SIS Selection by Institution Size ..............................................................................................................................................14SIS Selection by Institution Type .............................................................................................................................................18SIS Total Market Share by Institution Type ...........................................................................................................................21SIS Vendor Trends and Roadmaps ..........................................................................................................................................24 Campus Management Corporation ...................................................................................................................................25

Ellucian ..................................................................................................................................................................................27Jenzabar .................................................................................................................................................................................29Oracle.....................................................................................................................................................................................31RJM SONISWEB ..................................................................................................................................................................32Three Rivers Systems ...........................................................................................................................................................34

Companies to Watch in 2013 and Beyond .............................................................................................................................36Amperea ampEducator .......................................................................................................................................................36FAME .....................................................................................................................................................................................37Unit4 Agresso Education ....................................................................................................................................................38Workday ................................................................................................................................................................................39

U.S. Higher Education Technology: 2013 and Beyond ........................................................................................................40Cloud Computing......................................................................................................................................................................41Mobile Computing ....................................................................................................................................................................44Massive Open Online Courses (MOOCs) .............................................................................................................................45Appendix ....................................................................................................................................................................................46

Methodology ..........................................................................................................................................................................46About the Authors .................................................................................................................................................................47About The Tambellini Group, LLC. .....................................................................................................................................47Pricing Information ...............................................................................................................................................................48Copyright and Terms of Use.................................................................................................................................................50List of References ...................................................................................................................................................................50

2013 Student Information Systems U.S. Higher Education Market Share, Trends and Leaders



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The authors gratefully acknowledge the editorial contributions of Katelyn Tambellini, who reviewed and edited the report in the context of her vast knowledge of the Education Information Technology Profile Database™, technical writing, publishing and education technology. Her edits and insights are appreciated.

The authors would also like to thank each of the vendors covered in the 2013 report. Every vendor provided detailed information and responsive answers to our questions. Additionally, the vendors provided feedback for their summary sections to ensure an accurate portrayal of their solution.

This report would not be possible without the support of our market research team, data analysts and staff. The cover design and creative layout is by Lisa Mott. Every effort is made to provide accurate and timely information. The authors acknowledge that institutions make it possible for us to report our findings by answering our surveys and providing interviews. We thank everyone who has participated in making this major report available.

Acknowledgements



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The U.S. student information systems (SIS) market continues to shift in an effort to accommodate the changing needs of higher education institutions and their constituents. Key themes driving 2012 SIS procurements were automation, centralized processing, self-service and managing long-term costs. Institutions are seeking to automate business processes, centralize enterprise-wide software solutions and provide the capability for students, faculty, parents and administrators to do as much as possible via self-service. Costs associated with aging systems and systems that have been heavily customized are being targeted for reduction. This report is a cumulative report that provides a detailed overview of the higher education student information systems (SIS) market within the U.S. The goal of the Student Information Systems U.S. Higher Education Market Share, Trends and Leaders report series is to convey important market research about vendors providing SIS software solutions and services. We provide this information to better inform higher education institutions’ SIS purchasing and implementation decisions. There is a scarce amount of resources dedicated to presenting and analyzing specific SIS vendor selections made by institutions. As a result, institutions must fend for themselves to discern one SIS vendor from another in an industry where it can be challenging to make distinctions between vendors due to similar marketing. With that in mind, The Tambellini Group (TTG) created this series of reports to provide institutions with critical overviews of SIS vendors and selections made by institutions (that are not available elsewhere in this level of detail). The report analyzes a vast and complex set of data, making it accessible and easier to digest. A summary for each SIS vendor focuses on vendor-specific strengths.

Additionally, the report examines the SIS choices higher education institutions have made in recent years in order to illuminate emerging selection patterns. TTG’s extensive research captures the key aspects of this SIS selection process, including institution type, institution size, systems replaced and SIS add-on solutions. Higher education institutions use this report as a valuable resource to evaluate SIS trends and vendors before making SIS selections. Institutions also use this report to better understand the choices that peer institutions make by institution size and type. The report answers questions such as, “What SIS solutions are selected most often in private, not-for-profit institutions with enrollment between 5,000 and 9,999 students.” Vendors

refer to this report when meeting with higher education institutions. TTG’s unbiased market research and transparent presentation of decisions made by institutions, provide information relating to all vendors institutions are selecting. Finally, vendors use this report to discover market trends and to help inform product and marketing decisions.

The focus of this report is the 2012 SIS landscape, market share and trends, emerging technologies, and a review of SIS vendors selected most often by institutions in the U.S. The SIS data points analyzed in this report are derived from the TTG Education Institution Technology Profile Database™, which is the world’s most comprehensive catalog of over 51,300 education technology selections made by institutions worldwide. The Education Institution Technology Profile Database™ contains validated SIS records for more than 5,400 U.S. higher education institutions, which includes both accredited and non-accredited schools that span all institution types: public institutions, private, not-for-profit institutions, and private, for-profit institutions. The total size of the Education Institution Technology Profile Database™ exceeds 18,100 global institutions, including categories such as most recent systems selected for human resources, financial systems, learning management systems, CRM, student success, advancement/alumni systems, student/faculty/staff email, library systems, and more.

Executive Summary

“ Institutions may use this

report to easily determine

the vendor SIS solutions

most often selected by

other, similar institutions.”



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The TTG 2012 SIS Market Trends Report identifies and explores the following major points:

• U.S.highereducationSISselectionsaretrendingawayfrompublic institution toward private institutions.

• U.S.HighereducationSISselectionsaretrendingtowardinstitutions that have enrollments of less than 2,500students.

• In2012thefastestgrowingsegmentsofthehighereducation market are private, for-profit, and private,not-for-profit institutions.

• TheSISmarketforsoftwaresystemsdevelopedtoruninaclient-server or hosted environment has reached a maturestate.

• Vendorpreferencesareclearlydefinedbymarketsectorsand institution enrollment size.

• Withtheexpansivegrowthofcontinuingeducation,workforce development programs, and distance learning,the landscape within higher education is shifting awayfrom a primarily traditional learner environment.

Some of the most critical findings in this report depict major changes in the 2012 vendor landscape. Campus Management amassed approximately 36% of the total SIS procurements and was the leading vendor in 2012 with placements in 13 institutions that span 52 campuses. Forty of the institutions that selected Campus Management were private, for-profit institutions. Fifty-two percent of the SIS institutions making selections in 2012 were private, for-profit institutions. Niche vendors captured 20% 2012 SIS market share, primarily in the private, for-profit sector.

Ellucian (23%) was selected more than any other SIS vendor in 2012 in traditional learning institutions, which include private, not-for-profit, public- four-year, and public- two-year institutions. Ellucian was followed by Oracle (21%), Campus Management (17%) and Jenzabar (16%).

Eighty-two percent of the new SIS procurements in 2012 occurred in institutions with enrollments of less than 2,500 students. Campus Management (42%) took the lead in those institutions that procured a SIS with enrollments of less than

2,500 students, followed by Ellucian (8%), Jenzabar (7.5%), Three Rivers Systems (7.5%), and RJM Systems (5%). Niche vendors garnered 28% of the institutions selecting an SIS with enrollments of less than 2,500 students in 2012.

Oracle was the leading vendor in 2012 among institutions with enrollments of 10,000 students and greater. While this market comprised only 7% of the total 2012 SIS selections, Oracle was awarded eighty-two percent of the SIS selections in this size range.

Now in its fifth year, this annual report shows that the top group of vendors selected by institutions each year is made up of a core group of providers. Each year the top vendor for the year is determined more by the number of institutions that make decisions by size and type of institution than by changes in vendor product or strategy. For example, in 2012 the majority of the decisions were made by institutions that had less than 5,000 students, had requirements for term and non-term based enrollment, required vendor implementation and preferred a solution developed based on Microsoft technologies. Many of the institutions were also for-profit. Campus Management is most often selected by private, for-profit institutions and easily maintains the position of market share leader in that category. In 2012 top vendors Datatel and SunGard Higher Education combined to form Ellucian. Collectively, Ellucian SIS solutions are implemented at more U.S. institutions than any other vendor. Banner by Ellucian is selected more often than any other vendor SIS solutions. While institutions of various sizes and types select Oracle’s PeopleSoft SIS, Oracle is most often selected among institutions with multiple entities and/or large student enrollments.

The body of the report delves further into this research, shedding light on the new product offerings, services, and add-on products that have contributed to higher education institutions’ SIS selections in 2012. Institutions can use this report to easily determine the SIS solutions most often selected by other, similar institutions.

Executive Summary (cont.)



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TTG’s definition of the U.S. higher education market includes all accredited and unaccredited postsecondary institutions and schools that span all institution types: public institutions, private, not-for-profit institutions, and private, for-profit institutions. The TTG Education Institution Technology Profile Database™ is the world’s most comprehensive catalog of over 18,100 worldwide institutions, including 9,500 U.S. education institutions. TTG currently has SIS data for more than 5,300 U.S. higher education institutions. Figure 1 shows the percentage of U.S. SIS institutions tracked by TTG by sector of institution.

TTG Higher Education Market Definition

The TTG database includes institutions that are listed in the Higher Education Publications, Inc. Higher Education Directory (HED) and the U.S. Department of Education’s Integrated Postsecondary Education Data System (IPEDS), as well as institutions that are not included by either of these entities. While HED publishes the list of accredited institutions, IPEDS gathers information from every college, university, and technical and vocational institution that participates in federal student financial aid programs. The Higher Education Act of 1965, as amended, requires that institutions that participate in federal student aid programs report data on enrollments, program completions, graduation rates, faculty and staff, finances, institutional prices, and student financial aid.

Higher education is in a constant state of transition with ever-changing student expectations. Schools are starting to deviate from the traditional learner model typically seen in liberal arts schools to a more unconventional, career-oriented approach that accommodates adult, working, and underserved students. The proliferation of private, for-profit, and less than two-year schools , coupled with changing student needs, have had an impact on the U.S. higher education landscape. Less than two-year schools are typically non-degree granting schools that provide credit towards a

degree, or offer training and/or vocational programs that facilitate gainful employment. Profit-driven educational entities have become the fastest growing segment within higher education. Generally, private, for-profit institutions have experienced the most rapid enrollment growth. According to a 2012 report by the National Conference of State Legislatures, student enrollment at private, for-profit institutions has increased 225% over the last two decades, growing from 200,000 students in the late 1980s to 2.4 million students as of the 2010-2011 academic year.

Today, private, for-profit institutions enroll approximately 12% of the U.S. post-secondary student population. Private, for-profit institutions are becoming more accepted as credible and viable learning alternatives. They fulfill niche learning markets that were not previously addressed by public and private not-for-profit institutions.

Individuals interested in data from TTG are often reviewing market opportunity, education trends, technology adoption in higher education, and overall issues affecting procurements and investments in technology related to education of all types. As a result, the TTG Education Institution Technology Profile Database™ includes all types of institutions, regardless of size and accreditation status.

In addition to research reports, TTG uses research data to inform education executives and to deliver individual institution technology profiles to clients. Executives use data to compare peer institution records, to educate boards, trustees, and investors, and to reduce risk. Research is conducted from the perspective of the institution decision-maker and is developed to answer questions such as: Which vendor solutions have my peers recently selected? and How many other institutions with my basic institution profile have made the decision that I am considering?

By monitoring the selections made by institutions of all sizes and types, TTG is able to report on details unavailable from any other source. For example, in addition to the selection made by each institution, TTG tracks the vendor that was replaced by the selection. Over time, reports are available to indicate which vendor solution is most often selected when a vendor is replaced. The TTG Education Institution Technology Profile Database™ is updated on a daily basis, so report results and comparisons are subject to change as new information is validated and recorded.

Figure 1: Percentage of TTG SIS Institutions by Sector of Institution



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U.S. Higher Education Market OverviewAccording to the U.S. National Center for Education Statistics (NCES), student enrollment in degree-granting post-secondary institutions reached a record high of 21.6 million students1 in 2012. This represents a marked increase in student enrollment of about 6.2 million

students, as compared to the fall of 2000. The increase in college enrollment can be attributed to both an increase in the traditional college age student population and rising enrollment rates1. Table 1 depicts the estimated 2012 student enrollment by institution type.

Table 1: Estimated 2012 Student Enrollment by Institution Type

Source: NCES

According to the NCES, student enrollment in degree-granting post-secondary institutions increased by 37% between the years 2000 and 2010, from 15.3 million students to 21.0 million students respectively. A majority of this growth is attributed to a 45% increase in full-time student enrollment and a 26% increase in part-time student enrollment. In addition to degree-granting postsecondary institutions, about 539,000 students attended non-degree granting, Title IV eligible, postsecondary institutions in 2009. Research shows that this number continued to increase in years 2010 through 2012. Non-degree granting institutions typically offer career and technical curriculums that are two years or less in duration2.

The Student Clearinghouse estimates that between 33% and 38% of the students enrolled in U.S. higher education institutions are adult learners, and that this percentage is expected to increase by an additional 20% by the year 20193. Adult, non-traditional students are classified as undergraduate or graduate students who are 25 years of age or older, attend school on a part-time basis, are financially independent, and/or are likely to have jobs. The Lumina Foundation has reported that there are an estimated 37 million Americans who have previously attended a higher education institution but have not earned a degree. This equates to about 22% of the work force between the ages of 25 and 64 years.

Private, for-profit institutions are one of the fastest growing sectors within higher education. TTG research shows that 52% of the SIS selections in 2012 were made by private, for-profit institutions, with 39% represented by private, non-degree granting postsecondary schools. Learning programs that accommodate continuing education and career and workforce development continued to gain popularity in 2012. Online education represented another growth area in higher education in 2012. Overall, SIS activity in non-degree granting postsecondary schools and community colleges exceeded that of public and private, four-year institutions by eight percent.

Public 2-Year 7.4 million

Public 2-Year 7.4 million

Public 4-Year8.1 million

Private 4-Year5.6 million

“ TTG research shows that

52% of the SIS selections

in 2012 were made

by private, for-profit

institutions, with 39%

represented by private,

non-degree granting

postsecondary schools.”

2013 student information systems market trends report overview

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