Friday, January 10, 2014

Education Market Grows

Great segment over at Edweek entitled "Report Identifies Opportunities and Challenges for Ed. Technology Market" based on work from the Software Industry Association.

"Citing the increased sophistication of education leaders, the report's authors say district officials are "not looking for companies to sell them technology products, but are instead looking for partners who understand their challenges" and can help provide matching solutions."

"Increasingly, local decisionmakers are looking at technology not as a distinct budget item, but as a means to more efficiently and effectively address core goals and needs throughout their budget," the report indicates in the executive summary.

So true - as AcceleratingED is working with Sibling Holdings to identify more education companies to take to scale, we are sadly blown away by the number of technology companies who develop whiz-bang stuff that really isn't relieving a pain point for educators or does not work well with other systems. So while there is growth in the education segment, there is also a very limited number of successful edtech companies.

Other findings of the study:
  • Content revenue grew almost 20 percent, with increases in every area except reading and English/language arts, which is the largest segment of the content market.
  • Revenues for special education products were the highest in a special category that included products for English-language learners, Advanced Placement students, online courses, special education, and instructional improvement systems.
  • Online course revenues grew 200 percent
So do your homework and really make sure your product can work with others and is truly a solution that is needed in education.