More on the new behemoth – Timing, Open Source and Interoperability

So I’ve had a bit of time to digest the <a href="http://www.blackboard.com/webct/"big announcement yesterday and process what I heard on the analyst call, as well as see some of the feedback from around the edtech blogosphere. Here’s some more thoughts:

Timing and Rationale
First off, let’s put aside any euphemisms about this being a “merger” of equals. This was an acquisition by the largest player in the market (Blackboard, with $90 million in licenses last year) of its next biggest rival (WebCT with approximately $30 million last year in licenses). The offered price allows WebCT’s venture backers to recoup their investment (approx $120 million) with a decent return, far better than they were going to see anytime soon from the 5% operating margin that WebCT was turning at the time of the acquisition. Blackboard has been turning a profit plus is cash rich after it’s IPO, and with that and its line of credit, was in position to take over WebCT.

And the timing does make sense, in retrospect, in relation to WebCT’s recent release of CE6. Very few customers of their existing CE4 product have had time yet to do the upgrade. Sales for Vista have I think not been as good as hoped. So WebCT CE4 customers, expect some vigorous sales calls from Blackboard folks in your near future. BB hopes to convert many of these customers to its platform, and for those it doesn’t, it can still profit from sales of CE6 licenses without having to invest much by way of development in the near future. It will be surprising if there is anything much more than a few bug fix releases of WebCT CE6 before the new behemoth platform emerges.

Open Source
When challenged with the threat of “open source” both Blackboard (and WebCT in the past) have made incredibly vaporous statements in the past about how they are “open systems” if not open source, in an attempt to stave off interest from their customers in open source options. No doubt they will continue to do so, and Bryan Alexander’s right, we are likely to see more FUD coming from that camp. But on the analyst call yesterday they did come off as relatively nonchalant about the open source threat, and unfortunately not all of that is posturing.

Undoubtably, there are existing and future customers who will choose to go with the likes of Moodle and Atutor. Maybe if some of the bigger schools would weigh the value of ease of use and pedagogical flexibility more heavily than IT concerns we’d see even more adopt these two and for them to get the respect they deserve (I know, I know; look I’m not levying this claim, I’m just reporting what the common perception is, rightly or wrongly).

But for now at least, the promise that has been held out for those ‘bigger’ institutions has been lately from Sakai, the ‘enterprise’ open source CMS. And in my eyes this is the real tragedy here. In theory this presents the perfect opportunity for Sakai to shine and come into its own, to convert a ton of both BB and WebCT customers. Certainly, David Wiley seems to lament it not having showed up on a recent RFP in his state. Well true enough, I can understand David’s frustration at it not even showing up in the competition. But in reality it would have had to be an RFP so heavily weighted to business concerns at the expense of current functionality for Sakai to have stood a chance. You may hate the vision of online learning that CMS represent, but if you are trying to compare apples to apples, I just can’t see how the current release of Sakai measures up to these loathed commercial competitors.

But wait, what’s that you say – “but it’s open source, it will grow and and bloom as more people adopt and develop it.” Well, maybe. Hopefully. Last I heard, the soft money didn’t have too much longer to go and there look to be only a couple of instances actually in production. And maybe someone from inside that project can comment to the rest of us how many developers who are not funded through that soft money, and who are outside the “core schools,” are actually contributing code back into the core project right now. ‘Open Source’ at its best means more than just ‘source code availability.’ I will leave it at that lest I spark a religious debate. I do truly wish that project well, as monoculture in elearning is not a good thing. But I speak from personal experience in saying that adopting software solely or primarily because it is open source, and not weighing heavily enough its fit to functional requirements and one’s own capabilities for rectifying that lack of fit, is a fatal mistake in software acquisition and development..

Interoperability and Open ‘Standards’

This is the piece that really gets my goat. IMS has been around since 1997. The Content Packaging, QTI and Enterprise specs (the ones I take to be of primary concern when it comes to CMS portability) are now all at least 5 years old, if not more. And yet all of us, yes US, the adopters, implementers and purchasers of CMS, have given the commercial CMS a pass on these. (SCORM is a different story here, but unfortunately it’s never really applied that well for the higher ed sector, nor for the CMS that service it).

It’s not totally our fault – yes, the specs were a moving target for a long time. Yes, compliance testing likely means a load of liability insurance that no one can afford. Yes, there are good reasons to accept that the specs need to be able to be extended to accommodate things they couldn’t do in their original incarnations.

But we’ve accepted all of these excuses and what do we have? Instead of content interoperability and portability between systems, we basically have vendor lock in, the very thing the freaking specs were supposed to help avoid! And that just got a world worse too with this consolidation. David Davies has it exactly right when he says that “BigCo vendors were cautious about embracing interoperability too vigourously.” But who the heck thought they were ever going to adopt these voluntarily? Say what you like about the military and SCORM, but there are a whole lot of LMS that spent money to conform to that specification, and we know they do because there is a test you can run to confirm this, and there are procurement folks who insist they prove it before they are awarded a contract.

</end of rant>

Wow, I must have been bottling a lot of stuff up over the last few months of not posting to the blog. At least that’s the excuse I’ll give to anyone I pissed off with this write up! Anyways, that’s my limited view of things. Good luck! – SWL

More on WebCT aquisition by Blackboard

On the analysts call the first piece of work that was identified to bring the two products closer together was unifying an API for the Blackboard and WebCT.

So, what does that mean for things like the IMS Tools Interoperability Profile? Well, seems to me like the new unified API becomes a de facto ‘standard’ that will be even harder to displace for any of the more open approaches to integrating 3rd party tools into CMS. – SWL

HOLY $#@! – Blackboard and WebCT to merge

http://investor.blackboard.com/
phoenix.zhtml?c=177018&p=irol-newsArticle
&ID=767025&highlight=

Well, there goes any claim to being an insider! Just found out about this a few minutes ago and had no idea it was in the works. I believe this is true as I am sitting on the analysts conference call right now. You kind of knew something like this had to happen, but still it’s profoundly shocking now that it has, especially as WebCT is just pushing WebCT Campus Edition 6 out the door in the last few months, which meant it was no longer supporting 2 code bases. Somewhat unsurprisingly, it was referred to as an ‘acquisition’ a number of times, which seems really like what it is. – SWL

Blackboard “Blogging” their Annual Conference

http://blackboardblog.blogspot.com/

So I open my emailbox this morning to find a message from one of our former edtech blogging brethren, Greg Ritter from Ten Reasons Why. As many of you will know, Greg works for Blackboard (yes that Blackboard) who are having their annual conference right now in Baltimore. Greg wrote to ask if I’d point to a blog they have set up for the conference.

Well, I was a bit torn (as torn as I can be at 8 o’clock in the morning) – this breaks one of the blogging commandments to not blog on command, and to make matters worse, so far it looks basically like a more efficient means to distribute press releases into the blogosphere. Yet here I am, shameless shill of the corporate overlords, pointing to this Blackboard conference blog. I decided to let you be the judge yourselves – as is so often the case, folks in the blogosphere can sniff things out pretty well for themselves, and it’s definitely not the case in this medium that any press is good press. – SWL

Blackboard IPO Test Case for Tech Stocks

http://www.ecommercetimes.com/perl/
story/wallst/33409.html

More on the upcoming Blackboard IPO. This article is actually pretty good in that it is written for a more general audience and so the writer offers decent background on the CMS industry as a whole and an interesting perspective on Blackboard as an unlikely leader for a new tech stock IPO revival. – SWL

Blackboard’s IPO SEC Filing

long SEC URL

Other than the subscription-protected piece at the Chronicle of Higher Ed (and Charlie’s reference to it at Kairosnews) this is the only thing public I can find on this so far, but yes, the rumours seem to have been well founded, and Blackboard is going ahead with it’s IPO. Congratulations to them and good luck. – SWL

More grist for the ‘Blackboard going public’ rumour mill

http://www.ipohome.com/ipoplus/press/
usatoday_120403.asp

The same day that the article appeared in the Washington Post speculating on the possibility of Blackboard going public because of repeated meetings with investment bankers, the above article was published, concerning the potential re-kindling of tech IPOs. But as if to dampen down the growing rumours, Michael Chasen, Blackboard’s CEO, is featured in the article downplaying his company’s need to go public (which seems quite likely true, what with their recent earnings reports and an overall climate that meant Blackboard has not had “to worry about other overfunded companies in our space.”) The speculation continues… – SWL

Sentient Discover integration with WebCT or Blackboard

http://www.publictechnology.net/modules.php?the announcement
op=modload&name=News&file=article&sid=316

As if to confirm some points from Martha Whitehead’s paper below, that there is a growing availability of means to integrate library systems with CMS, this press release announces news of integration plans for this U.K.-based “learning resource management system” with both WebCT and Blackboard (though this press release points only to the WebCT announcement).

Even more interesting perhaps is that Sentient’s Discover product is also starting to bridge the world of library collections and learning object repositories; its 2.0 version, to be released in January, will allow users to retrieve results from both their institutional library catalogue and the MERLOT metadata repository in the same search. – SWL

Blackboard going Public?

http://www.washingtonpost.com/wp-dyn/
articles/A33240-2003Dec3.html

Via Ray Schroeder’s Online Learning Update comes a link to this article speculating on the possibility that Blackboard will go public sometime in the near future. I remember being disappointed before the bubble burst that they hadn’t IPO’d, as they seemed a good candidate at the time. In retrospect they are looking like geniuses now – missed having their market capitalization decimated and grew the company to where it has real profits. – SWL

WebCT Powerlinks to open source portfolios, HorizonLive synchronous tools

http://home.businesswire.com/portal/site/
google/index.jsp?ndmViewId=news_view&
newsId=20031106005458&newsLang=en

and also
http://www.horizonlive.com/aboutus/news/
press_release_view.php?id=35

Two recent press releases from WebCT that help to illustrate the strategy the major CMS players are adopting to extend their products. In WebCT’s case the strategy is called “Powerlinks,” which I take to be roughly analogous to Blackboard’s “BuildingBlocks” initiative…
Continue reading “WebCT Powerlinks to open source portfolios, HorizonLive synchronous tools”