doing business in the elearning arena – technology perspective

Doing Business in the eLearning Arena –

Technology Perspective

Who is Arel ?

e-Learning Standards

Live or On-Demand?

Video or not?

Technologies to notice

Summary

What’s for today ?

Founded 1988

NASDAQ (1994) symbol: ARLC

IDL and e-Learning technology provider since 1997

Established USA subsidiary, Arel Inc. Feb. 1998

Acquired W2COM, IDL solutions provider, Aug. 2000

About Arel

Lucent Technologies

AT&T Wireless

Volkswagen of America

BMW

CARS Canada

Shoppers

NationsBank

Royal Bank of Canada

First Union Bank

Toronto Dominion Bank

Royal Bank of Scotland

CIBC

Anheuser Busch

Owens Corning

Charles A. Hayes

Amway

Key Customers - Corporate

Public:

• State of Texas

• Texas Technical College

• State of Ohio

Education:

• Kellogg Community College

• Washington University

• Bob Jones University

• Aquinas College

Key Customers - Public & Education

0.37

2.8

8.8

15.0

0

2

4

6

8

10

12

14

16

1997 1998 1999 2000

Revenue($ million)

CAGR: 333%

• Arel became profitable in Q1 1999

Arel IDL Financial Performance

Content

E-Training Technology

Network Infrastructure

Major E-TrainingComponents

Services

0.2 0.20.7

0.40.5

1.3

0.6

1.2

2.3

0.8

2.4

3.9

1.1

4.1

6.2

0

1

2

3

4

5

6

7

1999 2000 2001 2002 2003

Tools/Technology Services/Hosting Content

(Source: International Data Corporation, 2000)

Revenue($ billion)

CAGR: 83%

CONTENT is the largest market segment,But SERVICES is the Fastest growing

U.S. Internet-Based Training Market Growth By Market Segment

e-Learning standards

Are standards forming ?

Standards for what ?

Which standard is complete ?

Which will win ?

Is it good for me ?

What is included in an e-Learning solution suite ?

Integrated solution and standards

Standards are coming

But slowly

There is no standard content now

Integrating technologies is expensive

Go for integrated and demand standards

Live or On-Demand?

Raise hand to ask the expert now!

Live - Interact with others

Live – effective, engaging, immediate feedback

On Demand – any time, whenever I want

New - Traceable Interactive On-Demand

Immediately ready On-Demand

MIX !

To video or not to video?

No question about it’s effectiveness !

Is bandwidth available? Is it coming?

Implementation organization-wide

The business perspective –

for technology providers

for service providers and operators

Pricing perspective

0

100

200

300

400

500

600

700

800

900

1999 2001 2003 2005 2007

Satellite Based

Internet Based

Video Conference

Total U.S. Revenues for IDL Comparison by Sector

Source: Frost & Sullivan, 2001

$ Million

Average monthly Internet page views, 2000-2005

0

20

40

60

80

100

Billio

ns

Narrowband PC

Broadband PC

Interactive TV

2000 2001 2002 2003 2004 2005| | | | | |

Broadband focus

To video or not to video?

No question about it’s effectiveness !

Is bandwidth available? Is it coming?

Implementation organization-wide

The business perspective –

for technology providers

for service providers and operators

Pricing perspective

VIDEO !

Terrestrial networks and video conference

Spotlight

Instructor

LessonControlUnit (LCU)

Encoder

Subject MatterExperts (SMEs)

Media Server

Campus & Web Server

Learning Manager Database

ApplicationServer Media

ServerSpotlightOn-Demand

IRUsVirtualClass

ClassControlUnit (CCU)

Printer

Recaster

Spotlight

ISDN

MCU

Spotlight H.323

IP Network

Internet / Intranet

Instructor

Recaster

Unicast–any network enabled networks

Scaleable

Robust

Bandwidth friendly

Load balanced

XML ( eXtensible Markup Language)

SOAP (Simple Object Access Protocol )

.NET

DNA, NLB, CLB (Network, Component Load Balancing )

HTTP, HTTPS (Firewall and proxy friendly, secure )

Multicast, Unicast - enabled

Technologies to notice

Accreditation

Live – expert access value, not an e-book

On- demand for any-time any-place access

Integrated SME approach

Familiar video-enabled model

What creates a valid business case? – a feeling of value