Why So Many LMS Vendors?

Nearly 700 LMS vendors compete in today’s LMS marketplace.  These LMS vendors range from global software companies to tiny cloud vendors.  Why are there so many?  How do they all survive?  Who is doing all this buying?

I believe a combination of the cloud, SaaS and rise of extended enterprise learning can help explain the spike.


The Cloud and SaaS Business Model

Cloud technology has lowered the barrier of market entry for LMS vendors.  New LMS vendors with minimal investment can create a SaaS cloud LMS of limited scope to target a specific business problem, industry or region with a low cost solution.

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